Gulf States Consider Yemen Options As Houthis Consolidate

The Gulf Arab states are considering imposing economic sanctions against Yemen following the swift power grab of the Arab world’s poorest state by Houthi rebels.

Although not a major oil exporter, Yemen relies on revenues from hydrocarbons exports for around 60% of its revenues. Oil output has been in steady decline since 2002, and recent events have led to further output cuts, with little prospect of a recovery as the northernbased Houthis and Sunni tribes gear up for a battle in the northwestern oil province of Marib. And with foreign oil companies exiting the troubled country on an almost weekly basis, a withdrawal of Arab funds could further cripple the country’s already fragile economy. (CONTINUED - 937 WORDS)