Category World News

Leaders in Latin America and the United Nations have voiced concerns about the spiralling tensions between the United States and Venezuela over the future of oil exports from the South American country.

The high-profile remarks on Wednesday come as Venezuela’s National Assembly convenes to discuss US President Donald Trump’s threat of a full blockade on oil tankers entering and exiting the country.

Petroleum is Venezuela’s top export and a pillar of its economy. Experts warn that, by threatening to sever Venezuela from its foreign oil markets, the US is attempting to destabilise the country’s economy and topple the leadership of Venezuelan President Nicolas Maduro.

Already, tensions between the US and Venezuela are at a high, with the Trump administration surging military assets to the Caribbean and Maduro responding with his own troop movements.

That has led figures like United Nations Secretary-General Antonio Guterres to press for calm in the region and a de-escalation.

Through UN spokesperson Farhan Haq, Guterres called on both countries to “honour their obligations under international law” and “safeguard peace in the region”.

Guterres also spoke with Maduro by telephone on Wednesday, repeating the need for both parties to respect international law.

Mexican President Claudia Sheinbaum, however, questioned whether the UN was taking enough precautions to prevent a full-scale conflict from erupting in the Americas.

“I call on the United Nations to fulfil its role. It has not been present. It must assume its role to prevent any bloodshed,” Sheinbaum said in her morning news conference on Wednesday.

She echoed Guterres’s appeal to find a “peaceful solution” to the tensions, adding: “We call for dialogue and peace, not intervention.”

The regional friction was also felt at a ministerial meeting in Brazil on Wednesday, where President Luiz Inacio Lula da Silva spoke to the conflict.

“I am concerned about Latin America. I am concerned about President Trump’s attitudes toward Latin America, his threats. We are going to have to be very attentive to this issue,” Lula said.

The Brazilian leader shared that he had spoken to Trump about Venezuela and urged him to find a diplomatic solution.

“The power of words can be worth more than the power of weapons,” Lula said he told Trump. “It costs less and takes less time if you are willing to do it.”

He added that he had offered Brazil’s services as a mediator to facilitate communications with Venezuela. It shares a border with Venezuela to the north, and previously, in 2022, Lula restored Brazil’s relations with the Maduro government.

“I told Trump: ‘If you are interested in talking on good terms with Venezuela, we can contribute. Now, you have to be willing to talk. You have to have patience,’” Lula said.

The comments come on the heels of Trump’s latest threats on Tuesday.

On his online platform Truth Social, the US leader announced that he had designated Maduro’s government as a “foreign terrorist organisation” and would implement a “TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela”.

“Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America,” Trump wrote. “It will only get bigger, and the shock to them will be like nothing they have ever seen before.”

Already, Trump has offered a $50m bounty for any information that leads to Maduro’s arrest, and his administration has deployed approximately 15,000 troops to the Caribbean, along with military jets and ships, among them the USS Gerald Ford, the largest aircraft carrier in the world.

Last week, the Trump administration also seized an oil tanker off the coast of Venezuela, claiming the vessel was sanctioned. The tanker’s oil, Trump said, would remain with the US.

Since his first term, Trump has led a “maximum pressure” campaign against the Maduro government, which has been accused of human rights abuses ranging from torture to the false imprisonment of political dissidents.

Last year, Maduro also claimed victory in a highly contested presidential election that critics called fraudulent — and that was followed by a deadly crackdown on protesters.

But critics have accused Trump of using his feud with Maduro as a pretext to expand his presidential powers and carry out controversial actions in the Caribbean region.

Since September 2, for instance, the Trump administration has bombed at least 25 boats and maritime vessels as part of an anti-drug campaign. An estimated 95 people have been killed in the attacks, which UN experts have likened to extrajudicial killings, in violation of international law.

Trump, however, has argued that the air strikes were necessary, blaming Maduro and other Latin American leaders for seeking to flood the US with drugs and criminals — allegations he has made with little to no proof.

Yemen’s separatist Southern Transitional Council (STC) is trying to create facts on the ground with its recent advances in the country’s eastern governorates of Hadramout and al-Mahra.

Its military push this month highlights that Yemen’s conflict – ongoing for more than a decade – cannot be reduced to one simply between the internationally recognised government and the Houthis. Instead, an overlapping map of influence is evident on the ground with de facto authorities competing over security, resources and representation.

At the heart of these changes is the STC, backed by a regional power, which now stands as the most powerful actor in Yemen’s south and parts of its east at a time when the government’s ability to impose unified administration over the whole country is distant and the economy is suffering.

In this context comes what the Yemeni government has said is the International Monetary Fund’s (IMF’s) decision to suspend activities in the country. While the IMF has not publicly commented on the topic, President Rashad al-Alimi, the head of Yemen’s Presidential Leadership Council, warned on Sunday that the decision was a “wake-up call” and an early signal of the cost of the STC’s security and military escalation in Hadramout and al-Mahra.

Al-Alimi stressed that Yemen’s economic circumstances – the country is the poorest in the region and has suffered immensely during the war – cannot withstand any new tensions. He added that the security instability in eastern Yemen would immediately affect the distribution of salaries, fuel and services and international donor confidence.

The solution, according to al-Alimi, is for the withdrawal of forces who have arrived in Hadramout and al-Mahra from outside the two governorates, calling it a necessary step to contain tensions and restore a path of trust with the international community.

But that economic warning cannot be understood in isolation from the shift in power in eastern Yemen, where competition for influence has become a direct factor in generating tension that leaves donors wary.

A new balance of power

The STC is clear that its goal is ultimately the secession of the territories in Yemen – its south and east – that formerly made up the country of South Yemen before unification in 1990.

It is opposed to the Houthis, who control Yemen’s capital, Sanaa, and much of Yemen’s populous northwest, and the STC’s leader, Aidarous al-Zubaidi, has a seat on the government’s Presidential Leadership Council, officially as one of its vice chairmen.

The STC and government forces have previously fought, most notably in 2018 and 2019, in Aden and its surrounding governorates.

Its current expansion eastwards, focused on government forces and those affiliated with them, is part of that ongoing division in the anti-Houthi camp but one that redraws the balance of power within it, turning resource-rich Hadramout and al-Mahra into a multiparty arena of competition.

There are three concurrent trends that are emerging as a result: the expansion of STC forces with regional support, a desire by local and tribal forces – independent of the STC – to solidify their presence and the clearly limited tools the government has to confront its rivals.

The result is the further fragmentation of the state on three interconnected levels.

Politically, there is fragmentation within the same anti-Houthi camp with multiple decision-making centres. The government and regional actors are finding it more difficult to unify security and administrative policies, and the idea of a single “chain of command” controlling territory under anti-Houthi control has been eroded.

Geographically, new lines of contact have now been formed. Whereas lines of control were previously between the Houthis and government forces, they are now between Houthi and STC forces as well as grey areas contested by local and tribal forces and multiple military groups.

And then there is fragmentation on the representative level with mounting disputes over who actually speaks for the south and Hadramout and the practical decline of the concept of a single state as a sovereign framework for managing resources and institutions.

In Hadramout and al-Mahra, the fragmentation is particularly sensitive as both governorates include important border crossings with Saudi Arabia and Oman and also have a long coastline with routes tied to trade, smuggling and irregular migration.

Any imbalance here does not remain local, it quickly spills over into the region.

Economy hostage to security

The IMF’s suspension of activities carries not only financial implications but also a political reading that the security and institutional environments no longer provide sufficient conditions for sustaining support programmes.

The Yemeni state relies heavily on its own limited resources and fragile external support, so any disruption in resource areas, ports or supply routes translates into immediate pressure on livelihoods.

The latest military developments increase pressure on the exchange rate and the government’s ability to meet its financial obligations and widen the trust gap between society and the state, prompting non-institutional alternatives based on levies and loyalties.

And it will shrink the room for the government to manoeuvre, meaning the government has to take into account the cost of any escalation because any military move increases an economic bill that it cannot pay and drains what remains of the government’s ability to manage services.

Now that the impression has taken root that Yemen has turned into “islands of influence”, some external actors may be inclined to deal directly with de facto local authorities at the expense of the government, weakening the political centre rather than helping it to strengthen.

That is why the latest developments are so important if not existential to the government and al-Alimi. His call for the withdrawal of outside forces from Hadramout and al-Mahra is part of an attempt to stop the deterioration of trust in Yemen and to present the government once again as capable of controlling the other parties in the anti-Houthi camp if reasonable political and economic conditions are provided.

Houthis gain while rivals stay divided

The Houthis, who overthrew the government in Sanaa in a coup in 2014, have benefitted from the developments in Hadramout and al-Mahra even without being directly involved.

Every struggle for influence in areas outside the group’s control gives it clear gains, including the disintegration of the front opposing it and its rivals being preoccupied by internal conflicts rather than by the Houthis themselves.

In the anti-Houthi camp, the notion of a united front recedes every time a military confrontation between its components takes place, and the discussion shifts from confronting the Houthis to disputes over power and resources within the same camp.

The divisions within the anti-Houthi camp and the regional dimension to them also allow the Houthis to reinforce their narrative that their rivals are working within competing foreign agendas, as opposed to the Houthis, who portray themselves as independent actors able to carry out their own decisions.

Moreover, the recent conflict and its consequences ultimately improve the Houthis ‘ negotiating position now that the other side is even more fragmented and weak. The Houthis will enter any upcoming settlement from a more cohesive organisational and administrative position, raising the ceiling of their conditions.

The Houthis may have their own economic and social tensions, but divisions among their enemies give them extra time to sustain the war economy and their instruments of control over it and over the people they rule.

Rising risks, domestic and regional

The current course of events in Yemen elevates a number of overlapping risks.

Domestically, there is the possibility of front lines turning into actual borders between adjacent entities, the expansion of security vacuums and declining prospects for producing a unifying social contract.

Regionally, there could be an expansion of the areas considered lawless along the borders with Saudi Arabia and Oman, increasing the risks of smuggling and leading to higher costs for managing border security.

Internationally, the growing need for global powers to communicate with multiple parties in Yemen prolongs the crisis and increases the chances that the conflict is internationalised through competition over ports, resources and shipping routes.

However, the picture painted does not mean there will be a decisive victory for any side and instead makes a mosaic of authorities, all needing external sponsorship, more likely. Inevitably, that will weaken the prospect of establishing a stable state.

A way out?

Lowering tensions by making partial deals on redeployments of forces is not enough. Instead, the path forward needs a broader approach based on three interlinked pillars.

First, the national project needs to be redefined by drafting a vision of the state that guarantees fair partnership for all the regions of Yemen within a viable federal framework and redefines the political centre as a guarantor of rights and services.

Second, security must be based on a model of local forces under a national umbrella. In Hadramout and al-Mahra, this should be done by building professional local forces within a clear national and legal framework with practical arrangements for withdrawing outside forces and ensuring that security decision-making in state institutions is uniform.

Third, an economic deal is necessary to restore trust by concluding a transparent agreement on managing resources in the governorates that produce them, the fair distribution of revenues and the linking of international support to an implementable reform plan with a clear commitment to protecting sovereign facilities under central management.

In the absence of these steps, Yemen will continue towards a gradual model of disintegration from the peripheries in which the most cohesive armed entities advance and contested margins expand.

If that continues, the economy will be the first victim of fragmentation, making conditions even more difficult for millions of Yemenis.

And the governance crisis will eventually turn into a prolonged stability crisis, the repercussions of which will be difficult to contain locally and perhaps even regionally.

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