28-04-2025
Treasury Sanctions Vessels Supplying Oil Derivatives to Houthis
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) on Monday announced new sanctions targeting vessels and companies accused of delivering oil derivatives to Houthi-controlled ports in Yemen and thereby helping to fund the group's attacks on international shipping in the Red Sea.
The action blocks the property of three shipping companies and their associated vessels for providing material support to the Houthis, who the U.S. government recently re-designated as a specially designated global terrorist group and a foreign terrorist organization.
'Today's action underscores our commitment to disrupt the Houthis' efforts to fund their dangerous and destabilizing attacks in the region,' said Deputy Secretary of the Treasury Michael Faulkender. 'Treasury will continue to leverage our tools and authorities to target those who seek to enable the Houthis' ability to exploit the people of Yemen and continue their campaign of violence.'
The Houthis, who control key Red Sea ports including Hudaydah, Ras Isa, and Al-Salif, generate millions of dollars by taxing and selling goods brought through these areas, according to the Treasury.
The group has deployed missiles, unmanned aerial vehicles, and naval mines to attack commercial shipping interests in the Red Sea, threatening global freedom of navigation and the integrity of international commerce, according to Treasury officials.
Refined petroleum products, in particular, are sold at inflated prices on Yemen's black market, providing revenue to purchase military equipment while creating artificial shortages for civilians, according to Treasury officials.
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The vessels targeted in Monday's action discharged cargo at Houthi-controlled ports after the expiration of a U.S. general license on April 4, 2025, which had previously allowed certain transactions involving refined petroleum products.
In addition to the newly sanctioned entities, Treasury cited previously designated vessels that continue to operate in support of Houthi activities, including the Clipper and the Akoya Gas, both linked to Iranian oil networks.
The sanctions come as U.S. military forces
As a result of the designations, all property and interests in property of the sanctioned parties within U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions involving them. Treasury officials also warned that providing support to the Houthis carries not only sanctions risks but also serious safety risks, exposing vessels and crews to potential attacks.
The Treasury warned that violations could result in civil or criminal penalties and that foreign financial institutions risk secondary sanctions for conducting significant transactions on behalf of designated parties.
The agency emphasized that its goal is not just to punish, but to encourage changes in behavior through economic pressure.
Zachary Stieber contributed to this report.
