The United States on Tuesday imposed sanctions on an alleged oil smuggling and sanctions evasion network linked to the Houthi group, spanning Yemen and the United Arab Emirates. This is the latest action against the Iran-backed armed group.
The U.S. Treasury Department stated in a declaration that the two individuals and five entities sanctioned on Tuesday are among the largest importers of petroleum products and money launderers operating for the benefit of the Houthis.
Deputy Treasury Secretary Michael Falkender said, “The Houthis collaborate with opportunistic merchants to reap massive profits from petroleum product imports and enable the group to access the international financial system. These shady commercial networks support the Houthi terrorist machine, and the Treasury will use all available tools to disrupt these schemes.”
One of the targets sanctioned on Tuesday is Muhammad al-Sunaydar. The Treasury Department stated that he manages a network of petroleum companies between Yemen and the UAE and is one of Yemen’s most prominent oil importers. Three companies in his network were also added to the sanctions list. The Treasury Department claimed these companies coordinated with a U.S.-designated entity to deliver approximately $12 million worth of Iranian petroleum products to the Houthis.
Since Israel launched the Gaza war against the Palestinian armed group Hamas in October 2023, the Iran-aligned Houthis have been attacking ships in the Red Sea, claiming it is an act of solidarity with the Palestinians.
In January of this year, the Trump administration re-designated the Houthi movement as a Foreign Terrorist Organization, aiming to impose stricter economic penalties for its attacks on commercial vessels in the Red Sea and assaults on U.S. warships.
In May, the United States announced a surprising agreement with the Houthis, agreeing to halt its bombing campaign in exchange for the group ceasing its attacks on ships, although the Houthis stated the agreement did not include sparing Israel.
The Israeli military attacked Houthi targets in Yemen’s Hodeidah port on Monday, the latest strike against the group. The Houthis have been attacking ships bound for Israel and firing missiles at them.
(Reuters – Reported by Daphne Psaledakis, Edited by Chizuru Nomiya)
