U.S. Targets Houthi Petroleum Network with New Sanctions

Houthi rebels patrol Yemen’s coast, targeted by new U.S. sanctions for their role in a petroleum smuggling network threatening Red Sea shipping lanes.
Houthi rebels patrol Yemen’s coast, targeted by new U.S. sanctions for their role in a petroleum smuggling network threatening Red Sea shipping lanes.

Crackdown Aims to Cripple Iran-Backed Group’s Revenue Stream

On July 22, 2025, the U.S. imposed sanctions on two individuals and five entities linked to a Houthi-led petroleum smuggling and money-laundering network in Yemen and the UAE, the Treasury Department announced.

These actors, profiting millions, have fueled the Iran-backed Houthis’ attacks on vital Red Sea shipping lanes, threatening global commerce.

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The sanctions, enacted under Executive Order 13224, target key financial facilitators, including Muhammad Al-Sunaydar and his Arkan Mars Petroleum companies, which imported Iranian oil to Houthi-controlled ports like Hudaydah.

This follows the State Department’s March 4, 2025, re-designation of Ansarallah as a Foreign Terrorist Organization.

The move underscores U.S. efforts to disrupt Houthi revenue and weapons procurement, aiming to curb regional instability.

By choking off illicit funds, the U.S. seeks to protect international trade and counter terrorism, signaling robust action against Iran’s proxies.

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