by Al-Fassel | 2026-01-28

The United States has expanded sanctions targeting networks accused of financing Yemen's Iran-backed Houthi movement through oil smuggling and illicit trade.

US Treasury officials say the measures expose how Houthi leaders enrich themselves while ordinary Yemenis endure rising prices, food shortages and deepening poverty.

Treasury statements describe a sophisticated web of facilitators sustaining attacks on shipping and prolonging Yemen's long-running conflict.

Illicit oil sales and terror financing

The Treasury Department announced sanctions against 21 individuals, entities and one vessel accused of supporting Houthi oil sales and logistics operations.

Officials describe the sanctioned individuals and entities as facilitating oil transfers, weapons procurement and financial services benefiting the Houthis' military and political leadership.

According to Treasury estimates, these illicit activities generate more than $2 billion annually, enriching senior Houthi figures and affiliates.

This revenue supports terrorism while driving up fuel and food prices for civilians living under Houthi control.

"The Houthis threaten the United States by committing acts of terror and attacking commercial vessels transiting the Red Sea," US Treasury Secretary Scott Bessent said.

Sanctions also focus on front companies accused of masking ownership, moving funds and evading international monitoring and enforcement mechanisms.

Smuggling networks threaten regional security

The Houthis rely on extensive smuggling networks to import weapons and military-grade materials into Yemen.

These networks allegedly use regional logistics firms, falsified documentation and maritime routes to bypass international restrictions and inspections.

Treasury statements link the illicit supply chains to repeated attacks on commercial shipping in the Red Sea and nearby waterways.

The Houthis have carried out missile and drone strikes against vessels, prompting heightened naval patrols and growing regional security concerns.

These attacks are described as unprovoked actions that threaten global trade routes and endanger civilian mariners.

By sustaining these operations, the smuggling networks are accused of undermining regional stability and international maritime security.

"Treasury will use all tools at its disposal to expose the networks and individuals enabling Houthi terrorism," Bessent said.

Treasury officials say targeting oil companies, financial facilitators and procurement operatives disrupts the group's ability to fund violence.

The sanctions are intended to isolate the Houthis financially while signaling consequences for companies enabling their destabilizing activities.

US officials emphasize that the measures are not aimed at humanitarian assistance or legitimate commercial trade into Yemen.

International partners are urged to enforce compliance and block sanctioned networks from rebuilding illicit operations.

Cutting off illicit funding remains essential to reducing violence, protecting shipping and pressuring the Houthis toward de-escalation.