Fuel prices soar on back of Iran war, leaving Yemeni labourers with no work

What the report says

Al Jazeera reports from Taiz, Yemen, that a sharp rise in fuel prices linked to the wider Iran war has stalled construction work in government-controlled areas, leaving daily wage labourers with little or no income. The report, published July 29, 2026, focuses on Fuad Mohammed, a 46-year-old plasterer with more than 25 years of experience, who said he has gone months with barely any work as homeowners and contractors suspend projects.

According to the report, diesel in these areas rose from 25,000 Yemeni riyals for 20 litres in January to 45,000 riyals, pushing up transport-dependent building costs. Al Jazeera cited increases in materials such as sand and window glass, while workers said household budgets no longer cover planned construction. Mohammed said he has cut his daily rate from 25,000 to 20,000 riyals in an effort to find work, but still struggles to provide basics for his family.

The article places the crisis within Yemen’s divided wartime economy. A Yemen Petroleum Company official in Aden previously told Reuters that diesel prices had been affected by supply problems, higher global fuel prices, regional tensions, the closure of the Strait of Hormuz, and increased shipping and insurance costs. Analyst Wafeeq Saleh told Al Jazeera that Yemen is highly exposed to external shocks because it imports most of its needs.

Al Jazeera says Houthi-controlled areas, including Sanaa, have not yet seen the same fuel-price jump, though Saleh warned impacts could appear later. The slowdown matters because construction is a key source of informal employment in a country already weakened by more than a decade of war, currency division and rising living costs.