Houthi Rebels Capitalize on Rich Red Sea Revenue Stream

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Yemen-based Houthi rebels with likely links to other terrorist organizations including Al-Qaeda, Al-Shabaab and Hezbollah are thought to be extracting billions of dollars from shipowners who are paying huge tolls for their ships' safe passage through the blockaded southern Red Sea.

A 537-page report compiled by a United Nations expert panel on Yemen reports that the Houthis are collecting up to $180 million a month from ship operators seeking to avoid the far longer and more expensive voyage round the Cape of Good Hope.

According to the UN experts, the Iranian-backed Houthis have transformed from a relatively small local resistance group into a powerful regional force.  

There is growing concern in global shipping circles that the escalating crisis in the Red Sea has become a wider regional conflict that will be far more difficult to resolve. And if the reports of shipowners bowing to extortion in exchange for safe passage have any basis in truth, the Houthis are unlikely to forego this rich new revenue stream any time soon.

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Read More at The Maritime Executive

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