US sanctions money lending network to Yemen's Houthi rebels, looks to boost maritime protections
WASHINGTON — In response to increasing attacks on ships in the southern Red Sea by Iran-backed Houthi rebels, the U.S. announced sanctions on thirteen people and companies that reportedly make tens of millions of dollars from the sale and shipment of Iranian goods to the Houthis in Yemen.
The White House also announced Thursday that it was encouraging allies to join the Combined Maritime Forces, a 39-member partnership that exists to counter malign actions by non-state actors in international waters, as it appears to be retreating push against the Houthis. The State Department and the Pentagon are leading efforts to expand the maritime partnership after three commercial ships were hit by missiles fired by Iran-backed Houthis in Yemen earlier this week.
The attack marked an escalation in a series of maritime attacks in the Middle East linked to the war between Israel and Hamas, as multiple ships found themselves in the crosshairs of a single Houthi attack for the first time in the conflict. The US vowed to “consider all appropriate responses” in the wake of the attack, specifically addressing Iran, which is the main sponsor of both Hamas militants in Gaza and the Houthis in Yemen.
In the new sanctions announced Thursday, the Treasury Department said the previously sanctioned Houthi and Iranian financial facilitator Sa'id al-Jamal are using a network of exchange houses and companies to help Iranian money help the country's militant partners in Yemen reach.
The sanctions block access to U.S. property and bank accounts and prevent targeted people and companies from doing business with Americans.
Lenders in Lebanon, Turkey and Dubai are cited for assisting al-Jamal, along with shipping companies from Russia to St. Kitts and Nevis, which are reportedly moving al-Jamal's Iranian commodity shipments. All people and companies were hit by sanctions on Thursday.
Brian Nelson, undersecretary of state for terrorism and financial intelligence, said the Houthis “continue to receive funding and support from Iran, and the result is not surprising: unprovoked attacks on civilian infrastructure and commercial shipping, disrupting maritime security and threaten international commercial trade.”
“The Treasury Department will continue to disrupt the financial facilitation and procurement networks that enable these destabilizing activities.”
Since October, the Houthis have launched missile and drone attacks on commercial shipping operations in the Red Sea and Gulf of Aden.
The Houthis have sporadically attacked ships in the region over time, but attacks have increased since the start of the war between Israel and Hamas, increasing after an October 17 explosion at a Gaza hospital that killed many were killed and injured. Houthi leaders have insisted that Israel is their target.
White House National Security Council spokesman John Kirby said the US has already heard from “several key partners” interested in potentially joining the Combined Maritime Forces.
The maritime partnership focuses on combating narcotics, smuggling, countering piracy and promoting a safe maritime environment. Upon request, CMF assets at sea respond to environmental and humanitarian incidents.
“Our focus right now is to ensure there are sufficient military assets in place to deter these Houthi threats to maritime commerce in the Red Sea and surrounding waters to the global economy,” Kirby said.
The White House announced earlier this week that the US could establish a naval task force to escort commercial ships in the Red Sea. National security adviser Jake Sullivan said Monday that the U.S. has had active discussions with allies about setting up the escorts, though nothing has been finalized.
Kirby emphasized that the US is “not necessarily engaged in armed conflict with the Houthis,” but is committed to protecting and determining freedom of navigation.
“This is an international problem. And it requires an international solution and that is exactly the approach that the United States is now taking,” Kirby said.
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Associated Press writers Lolita C. Baldor and Aamer Madhani contributed to this report.