The United States imposed sanctions on a financial institution based in Yemen on Friday, which has been accused of providing financial support to the Houthis.
This action is part of President Joe Biden’s administration’s efforts to increase pressure on the group as his term approaches its conclusion.
The U.S. Treasury Department announced the sanctions against Yemen Kuwait Bank, claiming that the bank has facilitated the Houthis’ exploitation of Yemen’s banking system for money laundering and for transferring funds to allies, including Hezbollah in Lebanon.
Since November 2023, the Iran-backed Houthis have launched over 100 attacks on maritime vessels, resulting in the sinking of two ships, the seizure of another, and the deaths of at least four sailors. These aggressive actions have significantly disrupted global shipping routes, leading some vessels to navigate around southern Africa rather than through the Suez Canal.
This disruption has adversely affected international trade, causing an increase in insurance premiums, delivery costs, and transit times, thereby raising concerns about escalating global inflation.
The Houthis took control of Yemen in late 2014 and currently dominate most regions of the country, including the capital, Sanaa. They have also targeted Israel with missile and drone strikes, which is located hundreds of kilometers to the north. In response, Israel has conducted airstrikes on Houthi positions multiple times, including recent bombings of two ports and a power station.
In December 2023, the U.S. and Britain initiated a multinational operation aimed at protecting commerce in the Red Sea and have consistently carried out airstrikes on Houthi strongholds, focusing on weapons storage sites.
Biden’s sanctions, implemented just before the inauguration of President-elect Donald Trump on Monday, freeze any U.S. assets belonging to Yemen Kuwait Bank and generally prohibit American entities from engaging with it. Individuals who participate in specific transactions with the bank may also face U.S. sanctions.
