Due to the U.S.-Israel war against Iran and escalating regional tensions, fuel prices in areas controlled by the Yemeni government have skyrocketed, with the price of diesel rising from $17 to $30 per 20 liters. The rise in fuel costs has triggered a chain reaction in the prices of construction materials, causing a large number of local construction projects to grind to a halt and leaving tens of thousands of construction workers unemployed. Yemen’s economy is highly dependent on imports and is extremely vulnerable to shocks in global commodity markets. Furthermore, attacks by Houthi militants on Saudi ships in the Red Sea have exacerbated shipping disruptions in the Strait of Hormuz and the Red Sea, pushing global oil prices above $100 per barrel for the first time since May.