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New US Sanctions Target Houthi Financing Networks

Yemen Monitor / Newsroom:

The administration of US President Donald Trump announced on Friday a new series of sanctions targeting Iranian-backed Houthi forces. These measures cover the transfer of oil, weapons, and dual-use equipment, which Washington claims has contributed to funding the group.

In a statement, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) said the actions target 21 individuals, entities, and one vessel, including companies believed to be acting as fronts in Yemen, Oman, and the United Arab Emirates.

US Treasury Secretary Scott Bessent stated in the release that “the Houthis pose a threat to the US by committing acts of terrorism and attacking commercial vessels transiting the Red Sea.”

The department added that these sanctions complement previous measures taken by Washington against the Houthis, which focused on their extensive revenue generation and smuggling networks. These networks enable the group to carry out regional destabilizing activities, including attacks in the Red Sea.

Since 2023, the Houthis have launched a series of attacks on vessels in the Red Sea. The United States says these attacks are related to “Israel,” while the Houthis claim they are carried out in solidarity with Palestinians due to the Israeli war on Gaza.

These are not the first sanctions of their kind. Washington has previously imposed restrictions on prominent Houthi leaders, as well as oil and weapons smuggling networks linked to Iran. It has also re-listed the group as a terrorist organization, steps aimed at cutting off its funding sources and limiting its financial and commercial mobility.

Previous sanctions have also included shipping companies, oil brokers, and vessels accused of transporting or smuggling Iranian oil for the Houthis, along with financial networks used for money laundering and securing hard currency for the group.

The Treasury Department stressed that the goal is to sever financing channels between Tehran and the Houthis and prevent the use of Iranian oil revenues to support armed groups in the region.

Washington views these sanctions in the context of what it describes as Iran’s role in providing military and financial support to the Houthis. This comes at a time when US reports indicate a relative decline in Tehran’s regional influence due to Israeli strikes targeting its proxies on several fronts, including Yemen.

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