Fuad Mohammed, a construction laborer for over 25 years in Taiz, Yemen, says the industry has steadily worsened since the war began more than a decade ago, and deteriorated further after the US-Israel war on Iran started in late February, devastating the region's economy.

Fuad told Al Jazeera he can barely support his family. In January, 20 liters of diesel cost 25,000 Yemeni rials ($17), but now it has skyrocketed to 45,000 rials ($30). This spike has triggered a domino effect, raising costs for all goods and services dependent on fuel, including construction.

Countless construction projects in government-controlled areas have halted. Fuad, who used to find work for two weeks a month, has gone months with barely any work. He has lowered his daily wage from 25,000 to 20,000 rials.

Wafeeq Saleh, executive director of the Taiz Center for Yemeni-Gulf Studies, explained that Yemen's economy is highly susceptible to external shocks as it imports nearly 90% of its needs. Rising global prices, tensions in the Strait of Hormuz, and increased shipping insurance and freight costs have driven up local prices.

In Houthi-controlled areas, fuel prices have not yet risen sharply, but experts warn the impact will appear in coming months as new imports are made at higher prices. The Houthis themselves have contributed to global oil price increases by attacking Saudi ships in the Red Sea, pushing oil above $100 a barrel.

Lutf Zuraiqi, 58, paused his home construction due to rising material costs, hoping prices will drop after the war. In contrast, contractor Mohammed Jameel, 59, with four decades of experience, believes prices never fall and advises continuing construction despite the crisis.

Source: www.aljazeera.com