Yemen Resumes Oil Exports After Four-Year Suspension

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Yemen Resumes Oil Exports After Nearly Four Years, Betting on Economic Recovery

The Pakistan Times — Islamabad

Yemen's internationally recognised government has announced the resumption of crude oil exports for the first time since late 2022, a move officials say could restore the country's most critical source of foreign currency and help stabilise an economy battered by years of war. The Pakistan Times examines what this decision means for Yemen and the wider region.

The Announcement

Rashad al-Alimi, chairman of Yemen's Presidential Leadership Council based in Aden, announced in a televised address that the government would work to restart oil exports "by all available means" starting July 20. He said the revenues generated would go directly toward paying salaries for public sector employees, upgrading essential services, and stabilising the country's broader economic situation. Al-Alimi framed the move as a step toward restoring the government's authority and ensuring that Yemen's natural resources benefit its citizens rather than remaining locked in conflict.

Why Exports Were Halted in the First Place

Yemen's oil exports came to a standstill in late 2022 after Houthi forces struck key export terminals, including facilities in Hadramawt and Shabwa provinces, using drones. Those attacks cut off roughly 70,000 barrels per day in exports and are estimated to have cost the Yemeni treasury more than three billion dollars in direct and indirect losses, contributing to a budget deficit exceeding 70 percent. Even before that disruption, Yemen's output had already been reduced to a fraction of its pre-war levels due to damage to infrastructure and a lack of new investment.

A Fragile Path to Recovery

Officials and analysts caution that reviving Yemen's oil trade will take more than a political announcement. Years of conflict have left export facilities, pipelines, and ports vulnerable, and restarting the flow of crude to international markets will require rebuilding a secure operating environment. Shipping companies, insurers, and foreign buyers will also need reassurance that Yemeni oil infrastructure is safe from further attacks before trade can resume at meaningful volumes.

Al-Alimi used his address to renew criticism of the Houthi movement, accusing the group of prolonging Yemen's crisis and aligning with regional actors rather than pursuing peace. He called for national unity behind the government's armed forces and security agencies as it works to restore state institutions across the country.

Regional Backdrop

The announcement comes at a tense moment for the wider region, with the Saudi-led coalition stepping up measures to protect shipping in the Bab al-Mandab Strait after the Houthis signalled new restrictions on vessels linked to Saudi Arabia. The overlapping security and economic pressures illustrate how closely Yemen's recovery is tied to the stability of surrounding waterways and regional relations.

What It Means Going Forward

For a government facing chronic fiscal strain, resuming oil exports represents a potential lifeline. However, the extent to which crude actually begins flowing to international buyers in the coming weeks will depend on security guarantees, infrastructure readiness, and the response of global shipping and insurance markets. The Pakistan Times will continue to follow developments as Yemen's government moves to translate this announcement into functioning exports.

Read more: World News on The Pakistan Times — www.thepakistantimes.live

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