Yemen’s political landscape remains fragile, with state institutions divided between the internationally recognized government (IRG), Iran-supported Ansar Allah and the UAE-backed Southern Transitional Council (STC), which seeks autonomy in the south. Elite capture continues to advance and all major actors increasingly dismantle organized civil society.
The socio-economic situation remains severe, with nearly half of the population requiring humanitarian assistance. GDP growth is negative, inflation is high and the Yemeni rial continues to depreciate. Poverty is widespread. Ansar Allah introduced subsidy cuts, expanded taxation and pursued currency stabilization, while also relying on coercive revenue extraction and the diversion of humanitarian aid.
The fragile alliance between IRG and STC has not stabilized governance. Coercion, political violence and deteriorating public services mark governmental actions. Ansar Allah blocks oil exports and conducts regional attacks, while infighting persists within the anti-Houthi alliance. Some U.N. interventions yielded limited progress, including prisoner exchanges, reopening of the Taizz road and preventing an environmental disaster from the 45 year-old Safer tanker which is moored near the port of Hudaidah.
