US Imposes New Sanctions Targeting Yemen's Houthi Dark Business Network

UNSPLASH/Bernd ILLUSTRATION Dittrich

JAKARTA - The United States on Tuesday imposed sanctions on a network of oil smuggling linked to the Houthis in Yemen and the United Arab Emirates. This sanction is a new action targeting the Iran-backed militant group.

The US Treasury Department said the two individuals and five entities sanctioned on Tuesday, July 22 were among importers of petroleum products and the largest money launderers benefiting the Houthis.

"Houthi collaborated with opportunist entrepreneurs to reap big profits from imports of petroleum products and allow the group to access the international financial system," US Deputy Finance Minister Michael Faulkender said.

"This illicit business network supports the Houthi terrorist machine, and the Treasury Department will use any available means to thwart this plan," he continued.

Among those targeted for sanctions is Muhammad Al-Sunaydar. The US Treasury Department said Al-Sunaydar manages a network of petroleum companies between Yemen and the United Arab Emirates and is one of the leading petroleum importers in Yemen.

Three companies in its network were also designated, with the Treasury Department saying it was coordinating the delivery of Iranian petroleum products worth about $12 million with companies designated by the US to the Houthis.

Since Israel's war in Gaza against Palestinian militant group Hamas began in October 2023, Iran-conjoined Houthis have attacked ships in the Red Sea as an act of solidarity with Palestine.

In January, Trump reiterated the Houthis movement as a foreign terrorist organization, aimed at imposing tougher economic penalties in response to its attacks on commercial shipping in the Red Sea and against US warships defending the critical maritime region.

In May, the United States announced a shocking deal with the Houthis in which the United States agreed to stop bombing operations against them in exchange for an end to attacks on ships, although the Houthis said the deal did not include pardoning Israel.

The Israeli military attacked the Houthi target at the port of Hodeidah Yemen on Monday, July 21, in its latest attack on militants, who had attacked ships bound for Israel and launched missiles against it.