The ongoing war involving Iran has led to a significant spike in fuel prices across the Middle East, severely impacting Yemen’s economy. Construction projects have come to a standstill as rising fuel costs trigger a domino effect on building material prices. Labourers like Fuad Mohammed, who have relied on construction work for decades, are now struggling to find jobs, with many forced to lower their daily wage just to secure any work at all.
In January, the cost of 20 litres of diesel was 25,000 Yemeni riyals, but it has now surged to 45,000 riyals. This increase has made it nearly impossible for homeowners to proceed with construction, as budgets no longer suffice. The situation is exacerbated by the fact that Yemen imports around 90% of its goods, making the local market highly sensitive to global price fluctuations.
While areas controlled by the Houthi rebels have not yet seen a sharp increase in fuel prices, this may change as the conflict continues. The Houthis’ recent attacks on Saudi vessels have further complicated the situation, contributing to rising global oil prices and threatening to disrupt the already fragile economic conditions in Yemen.
As the conflict drags on, the implications for everyday life in Yemen are dire. Labourers are left without work, families struggle to afford basic necessities, and the construction industry faces an uncertain future. The situation serves as a stark reminder of how regional conflicts can have far-reaching effects on local economies and livelihoods.
Source: Al Jazeera
