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Full Breakdown

Houthis Weigh New Fees on Bab el-Mandeb Shipping

7/29/2026, 9:37:14 PM

Proposed Fee Regime

Regional officials briefed by Tehran told Reuters that the Iran-aligned Houthi movement is studying the imposition of fees on most commercial vessels transiting the Bab el-Mandeb strait, the narrow gateway linking the southern Red Sea with the Gulf of Aden. No timetable has been provided, and the Houthi media office has not commented.

Recent Blockade and Maritime Activity

On July 20 the Houthis announced a maritime embargo against Saudi Arabia, expanding attacks on tankers that had begun in November 2023 as a show of solidarity with Palestinians in the Gaza war. A week later, on July 29, Reuters reported that the group was already considering the fee proposal. The attacks paused after the Gaza ceasefire in October 2023, but Red Sea traffic has not fully recovered. In the past week, the Houthis claimed responsibility for an attack on a Saudi tanker off Jizan, near Yemen’s southern coast.

Implementation Details and Exemptions

Sources said Houthi officials who returned from Iran were accompanied by Iranian advisers to help set up a regulatory authority for the fees. Chinese tankers would be exempt, reflecting direct talks between Beijing and the Houthis that aim to keep Chinese oil shipments safe from attacks.

Potential Economic Impact

A 2024 United Nations Panel of Experts report, cited by Reuters, alleged that the Houthis previously collected fees from some shipping agencies—estimated at roughly $180 million per month—though the panel could not verify the figure. Sailing through Bab el-Mandeb to Asia averages about 16 days, whereas rerouting via the northern Red Sea, the Suez Canal and southern Africa would extend the journey to roughly 50 days. Closure of the strait would deprive Saudi Arabia of a critical alternative to the Strait of Hormuz, raising concerns about oil-supply disruptions.

International Reaction

Two Western diplomats told Reuters that any fee regime would meet strong opposition from Gulf states and European countries, while overstretched naval forces lack the capacity to protect merchant shipping adequately. A senior Iranian official also informed Reuters that Tehran has rejected Oman’s proposal for a regional joint management scheme that would have included voluntary fees for ships passing the Strait of Hormuz, further limiting diplomatic avenues to address the emerging Red Sea pressure point.