Yemen has suffered economic losses exceeding $3 billion due to the suspension of crude oil exports following attacks on key oil infrastructure by the Houthi militia in late 2022, officials reported. The assaults targeted the Al-Dhaba oil terminal in Hadramawt Governorate and the Al-Nashima Port in Shabwa Governorate, disrupting the export of approximately 70,000 barrels of Yemeni crude oil per day.

The halt in oil exports has significantly impacted Yemen’s public finances, contributing to a budget deficit exceeding 70 percent. The resulting financial strain has led to a depreciation of the Yemeni Rial, delays in government salary payments, and a diminished capacity for the state to provide essential public services such as electricity, water, and healthcare.

Authorities have underscored that resuming oil exports is expected to generate substantial economic benefits, including increased government revenue and augmented foreign currency reserves at the Central Bank of Yemen. Such improvements could stabilize the national currency’s exchange rate and facilitate the timely disbursement of salaries to both civilian and military personnel.

In addition to fiscal stabilization, the revival of oil exports is anticipated to supply crucial funds for fuel purchases needed to operate power plants, support water and health sectors, and enable the reopening of hospitals and health centers. Officials also noted that a stronger currency would help reduce living costs and stabilize prices for basic goods.

The Yemeni government emphasized that the attacks on the oil ports constituted not just military actions but also an economic assault with far-reaching consequences for the wellbeing of the population. The Presidential Leadership Council has reaffirmed its commitment to prioritizing the interests of the Yemeni people and views the restoration and protection of oil exports as a key step toward rehabilitating the national economy.

Officials described the resumption of oil exports as a fundamental measure to relieve pressure on service and development institutions, improve public sector performance, and bolster the state's capacity to fulfill its obligations to citizens. They characterized securing these economic lifelines as essential for the country’s broader recovery and stability.