Posted originally on Sep 23, 2026 by Martin Armstrong |

The situation in Yemen is deteriorating by the day. The United Nations now says more than 130,000 people have been driven from their homes this month as fighting intensifies following the Houthi advance along the Red Sea coast. Another 100,000 could be displaced over the next three months. More than 3,000 people have already escaped Yemen by boat toward Africa, primarily Djibouti, and the UN is preparing for that number to reach 10,000 as calmer seas make the crossing possible.

Families are abandoning everything and crossing the Red Sea on whatever vessels they can find. Reuters documented families fleeing barefoot after bombardments reached displacement camps where some had already sought refuge from earlier fighting. This is what politicians sitting comfortably thousands of miles away never comprehend. War becomes a statistic to them. To the people trapped inside it, your home, savings, possessions, livelihood, and sometimes your family can disappear overnight.

Yemen was already one of the poorest nations in the Middle East before this latest escalation. Some 22 million people require humanitarian assistance. Now the infrastructure required to provide that assistance is itself being disrupted. Roads have been damaged, telecommunications have been interrupted, movement is restricted, and damage to the port of Mokha has complicated humanitarian logistics. UNHCR says its response plan was less than 20% funded even before this latest wave of fighting exploded.

This is precisely how regional wars expand. Everyone looks at Yemen as though it is some isolated civil war between the Houthis and the Saudi-backed government. It is not. Yemen sits beside one of the most strategically important pieces of geography on Earth. The Houthis’ advance along the Red Sea coast has placed them astride the Bab el-Mandeb, while Iran sits beside the Strait of Hormuz. Saudi Arabia is caught between both chokepoints.

Now even Vladimir Putin and Saudi Crown Prince Mohammed bin Salman are publicly calling for safe passage through BOTH Hormuz and Bab el-Mandeb. That alone tells you the seriousness of the situation. Saudi Arabia has already been forced to redirect oil through Egypt’s Suez Canal because of disruptions affecting its traditional export routes.

The humanitarian crisis cannot be separated from the economic crisis. The same waters desperate Yemenis are crossing to escape the fighting are among the most important commercial shipping lanes in the world. UNHCR warns that further deterioration around Bab el-Mandeb could force humanitarian cargo to travel around the Cape of Good Hope, adding 25 to 30 DAYS to delivery times. That means higher freight rates, more fuel, higher insurance premiums, delayed food and medicine, and eventually higher prices.

Djibouti is now being dragged directly into the consequences. It has fewer than 1.2 million people and already hosts tens of thousands of refugees and asylum seekers. The Markazi refugee facility has room for only around another 5,000 people while authorities are preparing for more than 10,000 arrivals from Yemen. More than 60% of the initial arrivals identified by UNHCR were women, children, and elderly people. The pressure on food, water, shelter, schools, and medical services will rise rapidly if this becomes a genuine mass exodus.

This is how migration crises begin. Nobody wakes up one morning and decides to abandon their country for entertainment. Capital flees political instability first. Businesses disappear. Employment collapses. Infrastructure deteriorates. Then the people begin moving because survival leaves them no alternative. Europe learned absolutely nothing from Syria because politicians never address the cause. They argue about migrants AFTER the war has already destroyed the economic foundation that allowed people to remain home. The same mistake is being repeated throughout the Middle East.

The Houthis do not need a fleet comparable to the United States Navy. Geography has given them leverage that money cannot easily purchase. Control enough coastline, deploy inexpensive missiles and drones, make insurers afraid to cover vessels, and a relatively small military force can disrupt commerce worth hundreds of billions of dollars.

This is asymmetric warfare in the 21st century. The West spent decades constructing a global economy based upon just-in-time delivery and narrow maritime chokepoints because it was efficient during peace. Nobody seriously planned for what happens when those chokepoints become battlefields simultaneously. Hormuz, Bab el-Mandeb, and the Suez route are not merely lines on a map. They are arteries of the world economy.

Yemen is therefore no longer something that can be dismissed as another forgotten Middle Eastern war. People are already fleeing across the Red Sea. Shipping is being disrupted. Saudi oil routes are being rearranged. Humanitarian organizations are running out of money while the number of displaced people accelerates. The politicians will still call each development an isolated event. Markets will eventually understand that they are all part of the same crisis.

Posted originally on Sep 23, 2026 by Martin Armstrong |

The situation in Yemen is deteriorating by the day. The United Nations now says more than 130,000 people have been driven from their homes this month as fighting intensifies following the Houthi advance along the Red Sea coast. Another 100,000 could be displaced over the next three months. More than 3,000 people have already escaped Yemen by boat toward Africa, primarily Djibouti, and the UN is preparing for that number to reach 10,000 as calmer seas make the crossing possible.

Families are abandoning everything and crossing the Red Sea on whatever vessels they can find. Reuters documented families fleeing barefoot after bombardments reached displacement camps where some had already sought refuge from earlier fighting. This is what politicians sitting comfortably thousands of miles away never comprehend. War becomes a statistic to them. To the people trapped inside it, your home, savings, possessions, livelihood, and sometimes your family can disappear overnight.

Yemen was already one of the poorest nations in the Middle East before this latest escalation. Some 22 million people require humanitarian assistance. Now the infrastructure required to provide that assistance is itself being disrupted. Roads have been damaged, telecommunications have been interrupted, movement is restricted, and damage to the port of Mokha has complicated humanitarian logistics. UNHCR says its response plan was less than 20% funded even before this latest wave of fighting exploded.

This is precisely how regional wars expand. Everyone looks at Yemen as though it is some isolated civil war between the Houthis and the Saudi-backed government. It is not. Yemen sits beside one of the most strategically important pieces of geography on Earth. The Houthis’ advance along the Red Sea coast has placed them astride the Bab el-Mandeb, while Iran sits beside the Strait of Hormuz. Saudi Arabia is caught between both chokepoints.

Now even Vladimir Putin and Saudi Crown Prince Mohammed bin Salman are publicly calling for safe passage through BOTH Hormuz and Bab el-Mandeb. That alone tells you the seriousness of the situation. Saudi Arabia has already been forced to redirect oil through Egypt’s Suez Canal because of disruptions affecting its traditional export routes.

The humanitarian crisis cannot be separated from the economic crisis. The same waters desperate Yemenis are crossing to escape the fighting are among the most important commercial shipping lanes in the world. UNHCR warns that further deterioration around Bab el-Mandeb could force humanitarian cargo to travel around the Cape of Good Hope, adding 25 to 30 DAYS to delivery times. That means higher freight rates, more fuel, higher insurance premiums, delayed food and medicine, and eventually higher prices.

Djibouti is now being dragged directly into the consequences. It has fewer than 1.2 million people and already hosts tens of thousands of refugees and asylum seekers. The Markazi refugee facility has room for only around another 5,000 people while authorities are preparing for more than 10,000 arrivals from Yemen. More than 60% of the initial arrivals identified by UNHCR were women, children, and elderly people. The pressure on food, water, shelter, schools, and medical services will rise rapidly if this becomes a genuine mass exodus.

This is how migration crises begin. Nobody wakes up one morning and decides to abandon their country for entertainment. Capital flees political instability first. Businesses disappear. Employment collapses. Infrastructure deteriorates. Then the people begin moving because survival leaves them no alternative. Europe learned absolutely nothing from Syria because politicians never address the cause. They argue about migrants AFTER the war has already destroyed the economic foundation that allowed people to remain home. The same mistake is being repeated throughout the Middle East.

The Houthis do not need a fleet comparable to the United States Navy. Geography has given them leverage that money cannot easily purchase. Control enough coastline, deploy inexpensive missiles and drones, make insurers afraid to cover vessels, and a relatively small military force can disrupt commerce worth hundreds of billions of dollars.

This is asymmetric warfare in the 21st century. The West spent decades constructing a global economy based upon just-in-time delivery and narrow maritime chokepoints because it was efficient during peace. Nobody seriously planned for what happens when those chokepoints become battlefields simultaneously. Hormuz, Bab el-Mandeb, and the Suez route are not merely lines on a map. They are arteries of the world economy.

Yemen is therefore no longer something that can be dismissed as another forgotten Middle Eastern war. People are already fleeing across the Red Sea. Shipping is being disrupted. Saudi oil routes are being rearranged. Humanitarian organizations are running out of money while the number of displaced people accelerates. The politicians will still call each development an isolated event. Markets will eventually understand that they are all part of the same crisis.

Categories:War