Washington Expands Sanctions on Houthi Militias Over Petroleum Smuggling and Regional Destabilization

Aden — The United States has announced a new wave of sanctions targeting key financial and logistical networks linked to Yemen’s Houthi militias, intensifying pressure on the Iran-backed group amid escalating regional tensions.
In a statement released by the U.S. Department of the Treasury, officials confirmed the designation of two individuals and five entities accused of facilitating petroleum smuggling and money laundering operations that generate hundreds of millions of dollars annually for the Houthis. These funds are believed to support the group’s military activities and undermine stability across the Red Sea region.
“The Houthis collaborate with opportunistic businessmen to reap enormous profits from petroleum imports and enable access to the international financial system,” said Deputy Treasury Secretary Michael Faulkender. “These networks underpin the Houthis’ terrorist machine, and Treasury will use all tools at its disposal to disrupt them.”
The sanctioned entities include Arkan Mars Petroleum Company, which allegedly operates under agreements with the Houthis to import Iranian oil through Houthi-controlled ports such as Hudaydah and Ras Isa. The Treasury also cited evidence of Iranian-affiliated companies facilitating payments between Tehran and Houthi-linked firms.
This latest action builds on a series of sanctions imposed over the past year, targeting Houthi revenue streams and weapons procurement efforts. The U.S. State Department previously designated the Houthis as a Foreign Terrorist Organization (FTO) in March 2025, citing their attacks on commercial shipping and missile launches toward Israel.
The move comes amid heightened international concern over Houthi aggression in the Red Sea and their expanding influence in Yemen. Analysts warn that the group’s control over strategic maritime chokepoints poses a growing threat to global trade and energy security.
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