U.S. Treasury Targets Houthi-Linked Ships to Disrupt Funding Channels for Regional Attacks

U.S. Treasury’s Sanctions Against Houthi Affiliates

The U.S. Treasury Department has taken decisive action against three vessels and their owners linked to the Houthis, a terrorist proxy network associated with the Iranian regime. This announcement follows the group’s escalating missile attacks, unmanned aerial vehicle deployments, and the use of naval mines to target commercial shipping activities in the Red Sea. Such actions have sparked concerns about the global freedom of navigation and the stability of international commerce.

On Monday, the Office of Foreign Assets Control of the Treasury Department revealed its latest sanctions, signifying a strong commitment to disrupt the Houthis’ funding methods that sustain their dangerous and destabilizing operations in the region. Treasury Deputy Secretary Michael Faulkender stated that the department would persist in using its resources to target those enabling the Houthis to exploit Yemen’s population and continue their violence.

Designations of the Houthi Group

In February 2024, the State Department classified the Houthis as a specially designated global terrorist organization and reaffirmed their status as a foreign terrorist organization in March. This classification underscores the serious nature of the group’s activities in the region.

A Treasury Department official highlighted that engaging in material support for the Houthis carries significant sanctions risks. Additionally, vessels and their crews face heightened safety threats from potential Houthi attacks amidst escalating tensions in the area.

Financial Networks Supporting the Houthis

The Houthis maintain control over strategic Red Sea ports in Yemen, including Hudaydah, Ras Isa, and Al-Salif. Revenue derived from these ports has reportedly funneled millions into the group’s military operations, enabling a relentless attack campaign against U.S. interests and allies. The group capitalizes on the sale of refined petroleum products at inflated prices on the black market, allowing them to acquire military materials and perpetuate corruption among Houthi leadership.

For instance, Zaas Shipping & Trading Co., registered in the Marshall Islands, has been implicated in facilitating the delivery of liquid petroleum gas to the Houthi-controlled port of Ras Isa with one of the targeted vessels, the Tulip BZ. This vessel has also been associated with transporting petroleum products on behalf of Iran.

Other Companies Under Scrutiny

In addition to Zaas, Bagsak Shipping Inc., a Mauritius-registered firm, is under sanctions for using their Panama-flagged vessel, the Maisan, to deliver gas oil to Ras Isa. This vessel has also engaged in the export of Russian crude oil and petroleum products since February 2023. The Great Success Shipping Co., also registered in the Marshall Islands, has used the vessel White Whale for similar deliveries to Ras Isa.

Escalating Military Actions by the U.S.

These sanctions follow President Donald Trump’s announcement in March regarding the relocation of additional combat forces to the Middle East, coinciding with military operations against Houthi militants in Yemen. As part of a strategy to counter attacks on U.S. forces and commercial shipping in the Red Sea, these actions represent a concerted effort to enhance security in a critical maritime corridor.

In a statement made on March 28, Trump expressed his determination to protect U.S. interests, stating that he would no longer permit the Houthis to threaten American forces and commercial vessels in vital shipping lanes. He indicated that military operations would continue until the group no longer posed a threat to navigation and U.S. personnel.

Continued Airstrikes and Strategic Objectives

U.S. military airstrikes have targeted Houthi leadership, weaponry, and command centers, using Navy ships, Air Force bombers, and drones to carry out these operations. NOTably, these strikes were initiated following renewed Houthi threats against Israeli vessels and attacks on U.S. forces, including the downing of seven Reaper drones since March 3.

The Houthis’ increase in aggression in the Red Sea follows the October 2023 attacks against Israel, raising concerns about their strategic intentions. Despite targeting U.S. warships, the group has reportedly refrained from attacking Chinese and Saudi vessels, prompting questions among defense officials regarding their objectives.

In response to the financial underpinnings of the Houthi operations, the Trump administration previously sanctioned the International Bank of Yemen for its monetary support of the group.

The Path Forward

As these sanctions aim to dismantle the Houthis’ ability to conduct aggressive operations, the U.S. is poised to intensify its military presence and operational capabilities in the region, thereby reinforcing a stance of deterrence against further Houthi aggression. The ongoing developments highlight the complex interplay between regional stability, international commerce, and U.S. foreign policy objectives.

Contributors to this report include members of the Fox News team, who provided additional insights and information.