The U.S. Treasury Department has sanctioned 21 individuals and entities for their involvement in financing Houthi militias.
U.S. Treasury Department Imposes Sanctions on 21 Individuals and Entities Linked to Houthi Militias
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced today the addition of 21 individuals and entities, along with one vessel, to its sanctions list. This action targets those involved in the transfer of petroleum products, arms purchases, and financial services for the Iran-backed Houthi militia.
Details of the Sanctions
The sanctions encompass shipping companies, ship captains, oil firms, and financial exchange companies. These entities continued to deliver petroleum products to ports controlled by the Houthis after humanitarian licenses expired, violating restrictions on dealings with a designated terrorist organization. The sanctions also address networks involved in arms smuggling, including attempts to transport anti-tank missiles. Additionally, some airlines sought to acquire aircraft for smuggling operations and revenue generation.
Treasury Secretary’s Statement
Treasury Secretary Scott P. Amato stated, “The Houthis threaten the United States with acts of terrorism and attacks on commercial vessels transiting the Red Sea. The Treasury Department is taking steps to sever ties with nearly twenty individuals and entities involved in oil transport, arms purchases, and financial services for this Iran-backed terrorist organization.”
Financial Operations of the Houthis
Amato further explained that the Houthis pay companies linked to Iran by transferring funds to exchanges in the UAE, including Jannat Al-Anhar Trading LLC, through currency exchange firms in Sana’a, Yemen. Houthi leaders impose exorbitant prices on ordinary Yemenis for oil and its derivatives, seizing the proceeds for personal gain and to fund military operations.
Revenue from Illegal Oil Sales
The Treasury Department highlighted that the Houthis continue to generate substantial revenue from illegal oil sales, exceeding $2 billion annually. As part of their oil sales operations, the Iranian government sells oil and provides a monthly shipment to the Houthis through Iranian or affiliated companies based in Dubai.
Supply Chain and Logistics
The department noted that Houthi operatives rely on a vast network of shell companies, logistics firms, and shipping brokers to transport weapons and other military equipment into Yemen. Among these companies is Wadi Kabeer Logistics Services, a shipping brokerage based in Sana’a with a branch in Oman.
Implications of the Sanctions
Under the sanctions, assets within U.S. jurisdiction will freeze, and all transactions with the listed individuals and entities will be prohibited. The Treasury warns of civil and criminal penalties for any parties that violate these restrictions.
Houthi Designation as a Terrorist Organization
The U.S. State Department designated the Houthi militia as a Specially Designated Global Terrorist (SDGT) organization under Executive Order 13224, as amended, effective February 16, 2024. Subsequently, on March 5, 2025, the Houthis were also classified as a Foreign Terrorist Organization (FTO) under Section 2019 of the Immigration and Nationality Act.
For more information, visit Yemen TV.
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