US imposes new sanctions on Houthi-linked oil smuggling network

Wednesday 23 July 2025 - 10:45

The United States announced new sanctions on Tuesday targeting what it described as a major oil smuggling and sanctions evasion network supporting Yemen’s Iran-backed Houthi rebels. The network allegedly operates between Yemen and the United Arab Emirates (UAE), generating millions in illicit revenue for the group.

According to a statement from the US Treasury Department, the sanctions apply to two individuals and five entities identified as key players in the import of Iranian petroleum products and money laundering on behalf of the Houthis.

“These rebels collaborate with opportunistic businessmen to generate enormous profits through oil imports, enabling them to access the international financial system,” said Michael Faulkender, Assistant Secretary of the Treasury. “These networks support the Houthi terrorist apparatus, and the Treasury will use all available tools to disrupt their operations.”

One of the individuals named, Mohammad al-Sounaydar, is described as managing a network of petroleum companies operating between Yemen and the UAE. He is considered one of the top oil importers in Yemen. The Treasury stated that three companies within his network coordinated the shipment of approximately $12 million worth of Iranian petroleum products, in cooperation with a firm already under US sanctions.

Since the start of the Israel-Hamas war in Gaza in October 2023, the Houthis have targeted commercial vessels in the Red Sea, claiming to act in solidarity with the Palestinians.

In January 2025, President Donald Trump re-designated the Houthi movement as a foreign terrorist organization, enabling stricter financial sanctions in response to Houthi attacks on commercial and US Navy ships. In May, the US reportedly reached a temporary agreement to halt airstrikes in exchange for a reduction in Houthi maritime attacks — though the group said the truce did not apply to Israel.

Most recently, on Monday, the Israeli military launched airstrikes against Houthi positions in the port of Hodeidah, responding to attacks on vessels heading toward Israel and long-range missile launches targeting Israeli territory.