Yemen's Saudi-backed government and its Houthi enemies are escalating an economic war as peace efforts stall, with tit-for-tat moves aimed at disrupting state oil revenues and fuel flows, leading to more humanitarian pain.

The Houthis, de facto authorities in north Yemen, have hampered the internationally recognised government's ability to export oil, a vital revenue source, by launching drone attacks at terminals in the south to deter tankers from loading crude.

The internationally recognised government has hit back, with moves likely to further restrict fuel flows into Houthi-held areas. The Aden central bank issued a circular, dated Dec. 6 and obtained by Reuters, to exchange companies and houses in Yemen to freeze accounts of and halt commercial and financial dealings with 12 companies that import fuel to Houthi-held areas.

The central bank cited "terrorist list" designations and anti-money laundering laws as the basis of its instructions.

Reuters