Washington: The US Treasury Department has imposed sanctions on two individuals and five entities involved in smuggling petroleum products and laundering money to benefit Yemen's Houthi group. The sanctions, announced on Tuesday, identify a network spanning Yemen and the United Arab Emirates as key importers of petroleum products that support the Iran-backed group.

According to Anadolu Agency, the Office of Foreign Assets Control (OFAC) has labeled this network as one of the "most significant" in facilitating the Houthis' access to petroleum products and the international financial system. Deputy Treasury Secretary Michael Faulkender highlighted the collaboration between the Houthis and certain businessmen, who are profiting from these activities.

The sanctions specifically target Muhammad Al-Sunaydar, Arkan Mars Petroleum Company for Oil Products Imports, Arkan Mars Petroleum DMCC, Arkan Mars Petroleum FZE, Yahya Mohammed Al Wazir, Al-Saida Stone for Trading and Agencies, and the Amran Cement Factory. As a result, all properties and interests of these entities in the US or under US control are now blocked. Entities owned 50% or more by the designated persons are subject to similar restrictions.

The US State Department had previously designated the Houthis, also known as Ansar Allah, as a Specially Designated Global Terrorist (SDGT) on February 16, 2024, and subsequently re-designated them as a Foreign Terrorist Organization (FTO) on March 5. In a related development, US forces carried out 481 airstrikes against Yemen between February and June, with a significant concentration of 280 strikes occurring in April as President Donald Trump sought to pressure the group to cease operations in the Red Sea.

In response to ongoing conflicts, the Houthis have increased missile and drone attacks on Israel since Tel Aviv resumed offensive actions on the Gaza Strip in March, following a fragile ceasefire. Since November 2023, the group has also targeted commercial shipping routes in the Red Sea, the Gulf of Aden, and the Arabian Sea, aligning their actions with support for Palestinians in Gaza, where over 59,000 individuals have been reportedly killed in what has been described as an Israeli genocide.