Yemenis fear economic consequences of being dragged into US-Iran conflict

Al Jazeera
March 27, 2026
3 min read

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Yemen faces economic collapse if pulled into U.S.-Iran conflict, threatening millions already suffering from war and humanitarian crisis.

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Yemeni civilians and business leaders are concerned that their country could be pulled into broader fighting between the United States and Iran, despite the Iran-backed Houthi movement not yet directly engaging in the conflict. The Houthis, which control much of Yemen's population centers, have the capacity to disrupt global commerce by targeting shipping in the Red Sea, a critical waterway for international trade. Such action would likely trigger U.S. military response and could devastate Yemen's already fragile economy, which depends heavily on imports and remittances. Yemen has endured years of civil war and humanitarian crisis, leaving its institutions and infrastructure severely weakened. Any escalation involving the Houthis risks compounding economic collapse and deepening the suffering of millions of Yemenis already facing food insecurity and limited access to basic services.

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