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The US coup on Houthis transfers UN concerns to Yemen's economy. It affirms the trade-off between the two that can hamper regional stability.
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UN concerns as US classification of Houthi rebels may negatively impact Yemen’s economy 

United States - The United Nations fears that the possible US decision to return to the terrorist group list of Yemen’s Houthis rebels – may result in the economy of the devastated hemisphere, in particular the imports of commercial commodities. 

New US Rules to Roll Out 

The new US rules announced last month are set to roll out this Friday. They contain devastating sanctions targeting Ansar Allah, the Iran-backed group with a declared goal to limit its funds and weaponry supply, something that the group has been using in its stepped-up attacks on cargo ships navigating in the Red Sea major shipping lanes, as reported by Reuters. 

Fragile Yemeni Economy at Risk 

Edem Wosornu noted that the aide said that the UN humanitarian community was alarmed by “any potential adverse effects” but stressed that it had issued some reprieve to minimize the child from the impact on the civilians in Yemen – a country where the UN states that more than 18 million people in need of assistance. 

“Nevertheless, we fear there may be an effect on the economy, including commercial imports of essential items on which the people of Yemen depend more than ever,” Wosornu told the UN Security Council. 

“Humanitarian aid cannot make up for gaps in the supply of commercial goods. Such effects may reverberate across the country. Yemen’s already fragile economy cannot handle any further major shocks,” she said. 

Yemen, for over three years now, has been immersed in the conflict in which the Houthis threw the government out of the capital, Sanaa. This was the entry of the so-called ‘Saudi Arabia-led coalition’ in 2015, the mission of which was to return the government to normal, Reuters reported. 

But the Houthis have been tempering down with the attacks on ships in and around the Red Sea for the last couple of months and are saying they are acting in sympathy with defenders of Palestinians in Gaza. It has harmed international trade, added more funds to inflation worries as well as broadened the thought that crises stemming from the Israel-Hamas war could further destabilize the Middle East. 

Escalating Transportation Costs 

According to Wosornu, the cost of transportation to the ports of Hodeidah and Aden in Yemen has “markedly increased since November due to the ongoing hostilities.” 

According to the World Food Program, containerized exports to Yemen have increased by up to 110%. She informed the council that freight rates had increased by up to 318% for other humanitarian organizations. 

The United States and Britain have simultaneously resorted to an airstrike against the Houthis in Yemen in an attempt to prevent a marine amenity, stating the action as appropriate, acceptable, and justifiable through the right of self-defense. 

US and UK Airstrikes Against Houthis 

On the US decision to relist the Houthis as a terrorist group, deputy U.S. Ambassador to the U.N. Robert Wood said: “The United States seeks to narrowly target the Houthis‘ terrorist activities while mitigating any humanitarian harm on the people of Yemen, who deserve the chance for a better future.” 

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