Washington, 16 January 2026 - The United States Department of the Treasury has announced a major escalation in sanctions targeting financial and logistical networks that sustain Yemen’s Iran-backed Houthi movement, known formally as Ansarallah. The Office of Foreign Assets Control (OFAC) has designated 21 individuals and entities, including one vessel, for their roles in transferring oil products, procuring weapons and dual-use equipment, and providing critical financial services to the group.
The latest measures aim to sever key conduits between the Iranian government and Houthi operatives and build on a series of Treasury actions designed to limit the flow of revenue that fuels regional destabilisation and militant activity.
Targeting Revenue Generation and Smuggling Networks
Despite sustained international sanctions, the Houthis have sustained significant revenue streams, particularly through the sale and smuggling of oil products. According to the Treasury, illicit oil sales generate more than US$2 billion annually for the group. The new sanctions focus on companies and individuals based in Yemen, Oman and the United Arab Emirates (UAE) that directly facilitate these operations.
Among those designated are UAE-based oil facilitators, such as Al Sharafi Oil Companies Services, Adeema Oil FZC and Arkan Mars Petroleum DMCC, which are accused of receiving financial backing from the Iranian government and acting as intermediaries in oil transactions tied to the Houthis.
Several designated actors also include exchange houses and front companies involved in moving funds between Yemen and Gulf states, as well as logistics firms that have supported both oil shipments and the importation of military-relevant equipment.
Weapons Smuggling and Procurement Efforts
Treasury’s action also draws attention to the complex networks used by the Houthis to procure weapons and other material support. Entities such as
Wadi Kabir Co. for Logistics Services — which operates shipping and warehousing facilities in Yemen and Oman are cited for their role in coordinating the transfer of weapons, including
anti-tank missiles.
Additional firms targeted include Rabya for Trading FZC, implicated in facilitating smuggled weaponry, and Al-Ridhwan Exchange and Transfer Company, which Treasury alleges has helped finance militant procurement through the movement of funds from Yemeni accounts.
Aviation and Expansion of Revenue Networks
Administration’s Position and Legal Basis
Treasury Secretary
Scott Bessent underscored the threat posed by the Houthis, describing their activities as both a security concern and a challenge to international efforts to restrict terrorist financing. “The Houthis threaten the United States by committing acts of terror and attacking commercial vessels transiting the
Red Sea,” he said, emphasising that the measures were intended to expose and dismantle the networks enabling such actions.
The sanctions were imposed under the authority of Executive Order 13224, which allows the US government to target individuals and entities providing material support to designated terrorist organisations. This designation builds on previous Treasury actions that have identified Houthi leaders, financiers and procurers for sanctions.
Broader Implications
By focusing on both the financial mechanisms and the logistical infrastructure behind the Houthis’ revenue streams, the Treasury’s action reflects a comprehensive strategy to curb the group’s capacity to fund its military and smuggling operations. The inclusion of front companies, exchange houses, shipping and aviation intermediaries indicates the breadth of the networks involved and the challenges faced by international efforts to counter illicit finance in the region.
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