Houthis consider Red Sea transit fees after Houthi attacks

Yemen's Houthi movement is reportedly considering imposing fees on maritime traffic passing through the Bab el-Mandeb strait, a move that could increase pressure on the Trump administration regarding its actions in the region. This potential measure follows recent Houthi attacks on commercial vessels and a declared maritime embargo against Saudi Arabia.

London's marine insurance market has expanded the high-risk zone in the Red Sea following renewed Houthi attacks. The Joint War Committee issued updated guidance on July 29, moving the northern boundary of its designated risk zone further up the Red Sea. Shipowners and insurers closely follow these assessments for negotiating war-risk coverage and premiums. While the designation does not prevent vessels from entering the affected waters, insurers may demand additional coverage and charge substantially higher premiums. Egyptian waters remain excluded from the expanded high-risk area.

The Houthis announced a maritime blockade of Saudi ports on July 20, escalating tensions with Riyadh. Regional sources cited by Reuters suggest the Houthis are developing plans for transit fees, which could ramp up pressure on the Trump administration to wind down its war on Iran. While China is negotiating fee-free travel for its vessels, Western diplomats note that international forces are overstretched. Red Sea traffic has not returned to pre-November 2023 levels since the Houthis began attacks in solidarity with Palestinians in Gaza.