US Treasury Sanctions Houthi-Iran Oil and Financial Network

The US Treasury Department has imposed sanctions targeting a network of individuals and entities it accuses of facilitating the transfer of oil products, procurement of weapons and dual-use equipment, and provision of financial services for the Iran-backed Houthis in Yemen. These sanctions aim to hinder Iran's oil network and restrict its ability to use oil sales to fund what it describes as regional terrorist proxies, specifically the Houthis.

Scope and Rationale of the Sanctions

The Treasury's Office of Foreign Assets Control (OFAC) sanctioned 21 people and entities, along with one vessel. The actions build on previous sanctions and are intended to disrupt financial networks between the Iranian government and the Houthis, as well as front companies and operatives in Yemen, Oman, and the United Arab Emirates that support the Houthis' illicit revenue generation. Treasury Secretary Scott Bessent stated the action is a response to Houthi acts of terror and attacks on commercial vessels in the Red Sea, which began in 2023 in response to the war in Gaza.

Alleged Financial Scale and Iranian Support

The Treasury claims the Houthis generate approximately $2 billion annually through illicit oil sales despite international sanctions. It further accuses the Iranian government of directly selling oil to the Houthis and providing the group with a free monthly shipment through Iran-owned or affiliated companies based in Dubai. Treasury alleges Houthi leaders charge Yemenis exorbitant prices for oil, pocketing the proceeds for personal gain and to fund military operations.

Targeted Entities and Individuals

The sanctioned companies and people include several UAE-based entities:

• Al Sharafi Oil Companies Services and Adeema Oil FZC, owned by Waleed Fathi Salam Baidhani
• Arkan Mars Petroleum DMCC
• Alsaa Petroleum and Shipping FZC (Alsaa), owned by Iranian national Imran Asghar
• Janat Al Anhar General Trading LLC, a UAE-based exchange
• New Ocean Trading FZE
• Albarraq Shipping Co and its sole director, Ebrahim Ahmed Abdullah Al-Matari, along with the oil tanker Albarraq Z

OFAC also sanctioned the captains of four previously targeted vessels and companies accused of smuggling weapons and aircraft for the Houthis. These latest punishments follow separate OFAC sanctions announced the previous day against 18 people and entities accused of participating in a shadow banking scheme to sell Iranian oil to foreign markets.