US sanctions network financing Houthi Red Sea shipping attacks

The US Treasury said it had sanctioned the head of the Currency Exchangers Association in Yemen’s capital, Sana’a

The Iran-backed Houthi group, which controls northern Yemen, has been attacking vessels in the region forcing cargo ships to avoid the Suez Canal

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A Houthi fighter on a ship’s deck in the Red Sea. Photo: Houthi Military Media / Handout via Reuters

Published: 1:40am, 29 Dec 2023Updated: 2:33am, 29 Dec 2023

The US Treasury Department unveiled sanctions on Thursday against a network involved in financing the growing number of attacks by Yemen’s Houthi rebels against international shipping in the Red Sea.

The Iran-backed group, which has controlled northern Yemen since 2014, has been attacking vessels in the region with drones and missiles since just after the Israel-Gaza war broke out in October, forcing cargo ships to avoid the Suez Canal - one of the world’s busiest shipping routes.

In response, the United States announced an international coalition to protect ships passing through the Red Sea in a bid to ensure freedom of navigation through the busy waterway.

In a statement, the US Treasury said it had sanctioned the head of the Currency Exchangers Association in the Yemeni capital, Sana’a, along with three exchanges in Yemen and Turkey responsible for “facilitating the flow of Iranian financial assistance” to the Houthis.

It added that these people facilitated the transfer of “millions of dollars” to the Houthis at the direction of Sa’id al-Jamal, a group linked to Iran’s Islamic Revolutionary Guards Corp (IRGC).

Unlike the Houthis, the IRGC has been designated as a foreign terrorist organisation by the United States.