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Market Chatter: Houthis Explore New Fees on Traffic Through Bab el-Mandeb

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The Houthis are exploring a plan to charge commercial vessels using the Bab el-Mandeb waterway, adding another layer to their Red Sea campaign after announcing a naval blockade on Saudi Arabia last week, Reuters reported Wednesday, citing two regional sources.

Houthi officials discussed Bab el-Mandeb transit fees during a July visit to Iran, where they attended the funeral of late Supreme Leader Ayatollah Ali Khamenei. The proposal would increase pressure on the US, while Chinese vessels would remain exempt, the report said.

Iranian advisers are helping the Houthis establish a body to oversee potential transit fees through the Bab el-Mandeb, Reuters reported. Yemen's foreign minister-designate Afrah al-Zouba said the group aims to control the Red Sea to charge passing ships.

Iran has rejected Oman's proposal for joint regional oversight of the Strait of Hormuz, which included voluntary transit fees for ships. The decision dims prospects for easing months of disruption to Gulf trade, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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