Please refer to the attached file.
SITUATION OVERVIEW
Frontlines in Yemen witnessed an uptick in reinforcements as government forces raised combat readiness and received ammunition and arms support from Saudi Arabia amidst heightened tensions with Ansar Allah (AA). During this period, AA announced a naval blockade against Saudi Arabia, threatening to interdict vessels bound for Saudi ports and potentially close the Bab al Mandeb under their ‘eye for an eye’ policy. This escalation followed airstrikes on Sana’a Airport, designed to prevent AA from establishing a direct air route between Tehran and Sana’a. AA missile and drone strikes targeting Saudi oil tankers and Saudilinked vessels continued throughout the final weeks of July, while also hitting Saudi Aramco oil facilities along the Red Sea coast. The deterioration of maritime security led to an increase in global oil prices and reduced commercial traffic through the Bab alMandeb strait. The UN Security Council adopted Resolution 2826, extending reporting requirements on AA maritime attacks in the Red Sea through January 2027. Concurrently, UN Special Envoy Hans Grundberg maintained continuous diplomatic travel between Muscat and Riyadh, briefing regional leadership and UN Security Council members on preserving the political framework of the 2022 UN-brokered truce.
On July 1, Saudi Arabia delivered a first batch of emergency generators to Hadramawt under the Saudi Development and Reconstruction Program for Yemen (SDRPY). However, electricity shortages persisted, with power outages in Aden reaching six hours of blackout for every two hours of electricity. The General Union of Southern Workers’ Syndicates organized a protest outside UN headquarters in Khormaksar on July 20 to demand improved public services. Meanwhile, local media reported that food prices rose in Sana’a and other AA-controlled areas as a result of an estimated 400 per cent rise in customs duties on flour and an additional levy of YR 5,000 imposed on each carton or sack of imported goods. Torrential downpours further exacerbated humanitarian conditions, especially for populations in Sana’a, Ibb, Amran, Al Hodeidah, Taiz and other areas. Heavy rainfall and windstorms also caused widespread damage to shelters across IOM-managed IDP sites, increasing humanitarian needs beyond available response capacity.
On July 20, the National Defense Council approved military, security, economic, and administrative measures to strengthen state institutions and boost state revenue, including a decision to resume oil exports. Oil production had been halted since October 2022, and years of conflict have damaged critical infrastructure including wells, pipelines and refineries, posing significant challenges to a speedy recovery. Regardless, anticipated proceeds from oil sales are to be deposited into the government-run Central Bank of Yemen in Aden to stabilize the currency and support essential government spending.