The U.S. Treasury emphasized that these sanctions are part of a broader effort to cut off funding sources for the Iran-backed Houthis, who have been responsible for destabilizing actions in the Red Sea region, including attacks on international shipping lanes.
Deputy Secretary of the Treasury Michael Faulkender stated, “Today’s action underscores our commitment to disrupt the Houthis’ efforts to fund their dangerous and destabilizing attacks in the region.”
These sanctions follow the U.S. re-designation of the Houthis as a Foreign Terrorist Organization in March 2025, reflecting an intensified campaign to counter the group’s threats to regional stability and maritime navigation.
The Houthis have controlled significant portions of Yemen, including the capital Sanaa, since 2014, and have been accused of using profits from illicit oil sales to finance military operations, exacerbating the humanitarian crisis in the region.
