By Bas van Geffen, senior market strategist at Rabobank
The Houthis are considering charging fees on vessels sailing through the Bab el-Mandeb Strait. Reuters reported that the plan was discussed with Iran’s leadership, who have offered help to set up an authority to collect the toll.
Besides the potential revenue source, the aim of the Bab el-Mandeb fees would reportedly be to normalize the idea of charging fees on international waters.
But freedom isn’t fees. President Trump has repeatedly rejected the idea of Iran levying a toll in the Strait of Hormuz, so why would the US president accept such a plan in any other strait? European countries have also vehemently opposed that idea. Moreover, the Houthis indicated that Chinese vessels would be exempted from these fees – creating a clear split in the freedom of navigation for different camps. So, the plan could also be used to put further pressure on the US and
