News - Yemen: Media outlets affiliated with the UAE-backed Southern Transitional Council (STC) reported that its forces came under aerial attack in Shabwah Province, coinciding with the presence of additional drones flying over Aden.

According to these outlets, a drone—likely Saudi—struck STC reinforcements in Shabwah, destroying seven armored vehicles and a military pickup, while the STC has yet to disclose the number of casualties.

These developments come amid continuing disputes between the Saudi occupation and the UAE occupation, as Saudi Arabia seeks to pressure the UAE into withdrawing its militias from Yemen’s eastern plateau, while UAE-backed forces attempt to impose new realities on the ground.

Traitor Rashad al-Alimi warned of what he called “dangerous” economic repercussions resulting from military escalation in the southeastern provinces. 

He noted that the International Monetary Fund has suspended some of its key activities in Yemen—an indication of deteriorating stability and growing strain on the mercenary government’s financial position.

Al-Alimi had earlier claimed that STC military movements threaten not only the security of areas under his authority but also public services and the regular payment of salaries.

UAE-aligned STC political figures dismissed al-Alimi’s comments as an attempt to “politicize” the economic reality in the occupied southern and eastern regions, accusing him of using people’s suffering as a bargaining tool.

Around one month ago, Reuters quoted Central Bank sources in Aden warning that the Pro-aggression government was facing a severe financial crisis amid growing political and military tensions.

At the same time, Aden has seen a wave of public complaints following sharp increases in prices of essential goods—some rising by nearly 20 percent—further worsening living conditions for residents already struggling with economic hardship and financial instability.

Meanwhile, the fuel crisis returned Thursday to choke Aden and Al Mukalla, coinciding with renewed regional proxy tensions and failed withdrawal agreements in eastern Yemen. 

Local sources reported long lines of residents waiting to obtain a 20-liter household gas cylinder, while black-market fuel prices soared to record levels despite a brief improvement in supply.

These rapid developments indicate that the ongoing escalation between militias loyal to the aggression coalition is poised to deepen economic pressures, with no signs of relief on the horizon.