By Al-Fassel | 2025-04-21

The United States has moved to block commercial activity at Houthi-controlled ports in Yemen, warning that entities engaging in maritime trade with the Iran-backed group could face legal consequences.

The move particularly targets oil transactions, the US State Department said in an April 9 announcement.

"The United States will not tolerate any country or commercial entity providing support to foreign terrorist organizations," State Department spokeswoman Tammy Bruce said.

This includes "offloading ships and provisioning oil at Houthi-controlled ports," she added, noting that "such actions risk violating US law."

The ban targets three Red Sea facilities: Al-Hodeidah, one of Yemen's main ports; Salif, a bulk grain terminal; and the Ras Issa oil terminal.

The Houthis have used al-Hodeidah, the largest and most active, to bring in weapons and military-grade equipment.

Salif and Ras Issa, a damaged but symbolically important oil facility, also have been involved in illicit activities, including smuggling and arms transfers.

Large vessels have been delivering weapons, missile components and drone parts at al-Hodeidah and Salif ports since late 2023, according to Yemeni media reports.

Entry point for weapons

Al-Hodeidah port serves as the primary entry point for Iranian weapons and military equipment, violating UN Security Council Resolution 2216's arms embargo, according to August analysis from the Lieber Institute.

The port also functions as a launch base for attacks on Red Sea shipping, it said.

The Houthis divert more than 70% of the humanitarian aid entering through al-Hodeidah port for their own use, rather than civilian distribution, according to intelligence estimates cited in the analysis.

The Iran-backed group generated nearly $790 million from customs duties and taxes through these ports between May 2023 and June 2024, the 'Recovering Stolen Assets – Regain Yemen' Initiative reported in March.

Petroleum products accounted for most revenues, with gasoline imports yielding $332.6 million in fees, diesel taxes bringing in $173.9 million and gas imports contributing $95.7 million, it said.

Funds for arms procurement

The resulting 40% price increases, passed on to the Yemeni consumer, have made basic commodities unaffordable for many people, forcing many factories and small businesses to shut down, the report said.

"Industrial stagnation has disrupted domestic supply chains and increased the local market's reliance on imports, exacerbating the economic crisis," it added.

Revenues from customs duties and taxes fund military operations and weapons procurement through Red Sea smuggling routes, Khabar Agency reported.

Military sources confirmed the Houthis have transported ballistic missiles and drones through Salif port and areas along al-Hodeidah's coastal strip, Al-Ain News reported last year.

The Houthis have launched more than 100 attacks targeting shipping since November 2023, sinking two vessels, seizing one and killing at least four seafarers.

The Houthi attacks have not only disrupted global shipping routes, but also severely harmed the Yemeni population.