US Tightens Financial Noose on Houthis With New Maritime Sanctions
The Biden administration has escalated its economic pressure campaign against Yemen’s Houthi rebels, sanctioning three commercial vessels and their owners for allegedly supplying the militant group with crucial energy supplies. The move comes amid heightened tensions in the Red Sea corridor, where Houthi attacks continue to threaten global shipping lanes.
The Sanctions Target
On Thursday, the U.S. Treasury Department blacklisted two Marshall Islands-registered companies—Zaas Shipping & Trading Co and Great Success Shipping Co—along with Mauritius-based Bagsak Shipping Co. According to officials, these entities operated tankers that delivered oil and gas shipments to Ras Isa, a key Houthi-controlled port on Yemen’s Red Sea coast.
“We will continue to disrupt the illicit financing that enables these destabilizing activities,” a senior Treasury official told WIRED, emphasizing the sanctions’ role in protecting maritime commerce.
A Deadly Parallel Strike
The financial measures coincided with reports of a U.S. airstrike on a Houthi-run detention center in Yemen that allegedly killed 68 African migrants. While Washington hasn’t officially claimed responsibility, local sources describe the facility as holding migrants from Ethiopia and Somalia—a grim footnote to the day’s economic actions.
This dual approach reflects the administration’s hardening stance since March, when it formally designated the Iran-backed Houthis as a Foreign Terrorist Organization. The group has controlled Yemen’s capital Sanaa and most populous regions since overthrowing the government in 2014.
Red Sea Ripples
The sanctions arrive as Houthi missile and drone attacks on commercial shipping—ostensibly in solidarity with Gaza—have forced rerouted trade flows and sparked inflation fears. Over 12% of global trade typically transits the Red Sea, making the waterway an economic pressure point.
“Every tanker delivering fuel to the Houthis extends this crisis,” a maritime security analyst noted. “These sanctions aren’t just about Yemen—they’re about preventing further shocks to the global supply chain.”
With the latest designations, the U.S. signals its intent to starve the Houthis of both weapons and the fuel needed to power their operations. But as migrant deaths underscore, the conflict’s human toll continues mounting alongside its economic consequences.
