Efforts to Halt Houthi Ship Attacks in Red Sea Threaten Yemen Peace Deal

The USA and its allies are ramping up efforts to halt Houthi militia ship attacks in the Red Sea by cutting off their sources of income, potentially jeopardizing a peace agreement to end the long-standing war in Yemen. The United States has warned parties, including Saudi Arabia, that key elements of a United Nations-led plan agreed to in December cannot proceed if the Iran-backed group continues its hostile maritime campaign. The plan involved the disbursement of $1.5 billion in official salaries from Riyadh to Houthi-controlled areas.

Despite US and British airstrikes against the Houthis, the group’s missile attacks and disruptions to shipping have continued, posing a challenge to peace efforts. The move to abandon the peace deal could lead to a renewal of conflict between warring factions in Yemen, potentially involving Saudi Arabia and other Gulf states. The ongoing tensions in the region come as efforts to negotiate a ceasefire in Gaza have seen limited success.

In response to the US decision on the UN peace plan, the Central Bank of Yemen, supported by Western allies, has taken measures against banks in Houthi-controlled areas to undermine Houthi authority and limit their access to foreign currency. The move aims to consolidate Yemen’s financial system and end the dual banking and currency system in place since the Houthis took power in 2014. The Houthis have accused the US and Saudi Arabia of waging an economic war against them in response to their stance on the Gaza conflict.

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