The United States has announced additional sanctions targeting procurement networks and facilitators for the Iran-backed Houthis in Yemen.
After Hamas’ brutal terrorist attack on Israel on October 7, 2023, the Houthis dramatically increased attacks on commercial shipping in the Red Sea and surrounding waterways, posing a grave threat to international commerce. The Houthis have also fired missiles and drones into Israel.
Mariners have been killed in Houthi attacks, ships have been sunk or disabled, and many shipping companies have redirected their vessels to longer and more expensive routes. Along with partners, the United States established a military coalition to help protect vessels from Houthi attacks. The U.S. has also imposed a series of sanctions on individuals and companies supporting the Houthis’ dangerous and destabilizing activities.
On October 2, the U.S. Treasury Department designated one individual and three companies that have facilitated weapons procurement and smuggling operations for the Houthis. In a statement, the Treasury Department noted that the action targets key procurement operatives and suppliers located in Iran and the People’s Republic of China. The individual is Iran-based operative Hasan al-Kuhlani, who has facilitated Houthi weapons smuggling efforts and coordinated to conceal and transport Iranian lethal aid to Houthi forces.
Also sanctioned were three China-based companies: Shenzhen Boyu Imports and Exports Co. Ltd, Shenzhen Jinghon Electronics Ltd, and Shenzhen Rion Technology Co. Ltd. Each company has either been the source or facilitator of multiple shipments of dual-use components for use in weapons production for Houthi militants. Shenzhen Rion was previously designated for having provided or attempted to provide financial, material, technological or other support for Iran’s Ministry of Defense and Armed Forces Logistics.
In addition, the U.S. sanctioned two oil tankers: the Gabon-flagged Izumo, for transporting petroleum products for the network of sanctioned Houthi financial official Sa’id al-Jamal; and the Cook Islands-flagged crude oil tanker Frunze, linked to the transport of illicit Iranian oil.
“The Houthis continue to leverage their networks of companies and procurement operatives to sustain their reckless attacks on civilian vessels, their unarmed crews, and civilian populations,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradely Smith. “Treasury remains committed to using our full suite of tools to disrupt the supply chain networks that enable the Houthis’ destabilizing activities.”
