The United States launched a sweeping financial crackdown on Friday designed to dismantle the economic engine powering Houthi attacks in the Red Sea. The new sanctions target a complex web of smuggling rings, front companies, and financial operatives that stretch from Yemen to the United Arab Emirates and Oman.
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 21 individuals and entities, along with one vessel, accusing them of fueling the Houthi war machine through illicit oil transfers and weapons procurement.
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Officials say the targeted networks serve as critical conduits between the Iranian regime and Houthi forces. The sanctions aim to disrupt the flow of funds and military-grade hardware that allow the group to continue its campaign against commercial shipping.
“The Houthis threaten the United States by committing acts of terror and attacking commercial vessels transiting the Red Sea,” said Treasury Secretary Scott Bessent. “Treasury will use all tools at its disposal to expose the networks and individuals enabling Houthi terrorism.”
Choking the Oil Revenue
A primary focus of Friday’s action is the illicit oil trade, which officials estimate generates over $2 billion annually for the Houthi movement. The Treasury Department detailed a scheme where the Iranian government provides oil shipments to Houthi-affiliated companies. These goods are then sold, often at inflated prices to ordinary Yemenis, to fund military operations.
Among those designated are UAE-based firms Al Sharafi Oil Companies Services and Adeema Oil FZC. Investigators allege these entities, along with Iranian national Imran Asghar’s Alsaa Petroleum, act as fronts to move money and product while masking the involvement of Tehran.
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The Viktor Bout Connection
The sanctions also shed light on Houthi ambitions to expand their aviation capabilities. The Treasury Department accused Houthi procurement operatives of attempting to build a fleet for smuggling illicit cargo through Sana’a International Airport.
According to the designation, two newly established carriers—Barash Aviation and Cargo Company Limited, and Sama Airline—sought to acquire commercial jets. In early 2025, representatives for these airlines reportedly attempted to partner with convicted arms dealer Viktor Bout to source aircraft.
Weapons and Shipping
Beyond oil and aviation, the crackdown hit logistics firms accused of smuggling weapons components. Wadi Kabir Co., a shipping facilitator with branches in Yemen and Oman, was cited for past attempts to smuggle anti-tank guided missiles disguised as electric generators.
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The sanctions list also names several ship captains who allegedly steered vessels into Houthi-controlled ports to offload petroleum products in violation of international restrictions. The captains of the vessels Sarah, Atlantis MZ, Akoya Gas, and Valente were all individually designated for their roles in keeping the supply lines open.
Friday’s designations freeze any U.S. assets held by the targeted individuals and companies and generally prohibit Americans from doing business with them. Foreign financial institutions that facilitate transactions for these entities now face the risk of secondary sanctions.
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