US Sanctions Network Supporting Houthis Via Iranian Petroleum Trade

The United States has imposed sanctions on a network of individuals and companies accused of facilitating the sale of Iranian petroleum products that benefit Yemen’s Houthi rebels. These actions aim to disrupt the Houthis’ financial networks and diminish their capacity to fund operations.

Sanctioned Network and Operations

The US Treasury revealed that the Houthis have been collaborating with businessmen to smuggle petroleum products into their territories in Yemen. These products are sold at high profits, aiding the group’s access to international financial systems.

Key sanctions include:

• Muhammad Al-Sunaydar and three of his affiliated companies, which handled approximately $12 million in Iranian petroleum products.

• Another individual and two companies involved in coal imports, money laundering, and providing cement for military infrastructure.

Deputy Treasury Secretary Michael Faulkender called these companies “shady businesses” that sustain the Houthis’ “terrorist machine.”

Red Sea Attacks and Global Trade Impact

The sanctions follow Houthi attacks in early July that resulted in the sinking of two commercial ships in the Red Sea—the first major attacks since a temporary truce in May.

Although crude oil traffic through the Suez Canal increased slightly in Q2, security concerns remain. Experts warn that the attacks might prompt more shipping companies to avoid the Suez Canal and Bab El-Mandeb Strait, impacting global trade routes.

The latest US sanctions highlight growing international concerns over the Houthis’ financial networks and maritime threats. With global trade routes at risk and the Houthis’ influence expanding through illicit funding, the US aims to cripple the economic backbone supporting these operations.