The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions on 32 individuals and entities, along with four vessels, in its largest action to date against Iran-backed Ansarallah, also known as the Houthis. The targets include companies, owners, and operatives associated with the Houthis in Yemen, China, the United Arab Emirates, and the Marshall Islands.
According to Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley, “The Houthis continue to threaten U.S. personnel and assets in the Red Sea, attack our allies in the region, and undermine international maritime security in coordination with the Iranian regime. We will continue applying maximum pressure against those who threaten the security of the United States and the region.”
The sanctioned networks are involved in fundraising, smuggling operations, weapons procurement—including ballistic missiles and unmanned aerial vehicles—and money laundering activities that finance attacks against U.S. forces and commercial shipping in the Red Sea. These actions have led to civilian deaths and pose risks to global commerce.
This move is authorized under Executive Order 13224 as amended. It builds on previous OFAC actions taken between June 2024 and July 2025 targeting Houthi leaders and facilitators. The action aligns with National Security Presidential Memorandum 2 (NSPM-2), which calls for economic pressure on Iran and its proxies.
The Department of State previously designated Ansarallah as a Specially Designated Global Terrorist organization effective February 16, 2024, followed by its designation as a Foreign Terrorist Organization on March 5, 2025.
Investigations reveal that Houthi leaders have seized state-owned and private assets using fraudulent legal claims since their takeover of Sana’a in 2014. These confiscated properties are used for money laundering through front companies like Shibam Holding. Individuals such as Saleh Mesfer Alshaer—previously designated by OFAC—and his brother Abdullah Mesfer Al-Shaer play key roles in managing these assets for military financing purposes.
Other companies seized or managed by Houthi affiliates include Kamaran Industry and Investment Company—a major Yemeni tobacco firm—and several real estate holdings. Key figures involved have been designated under E.O. 13224 for acting on behalf of or supporting Houthi activities.
Petroleum smuggling forms another significant revenue stream for the group. Mohammad Abdulsalam oversees a network importing Iranian oil products into Yemen valued at one billion dollars annually through businesses owned by associates such as Zaid Ali Yahya Al Sharafi and Saddam Ahmad Mohammad Al Faqih.
Front companies outside Yemen facilitate illicit shipping operations designed to evade sanctions enforcement after expiration of relevant licenses from OFAC. Vessels operated by Tyba Ship Management DMCC based in UAE were identified as discharging oil at Houthi-controlled ports; their ownership structures involve additional firms registered in Panama, Barbados, Antigua & Barbuda, and Marshall Islands.
Suppliers from China provide dual-use chemicals and electronics used for manufacturing weapons systems including UAVs and ballistic missiles; these suppliers have been sanctioned along with their leadership for materially assisting Houthi procurement efforts.
Additional logistics firms based in China manage shipments of military-grade components destined for Yemen via complex routing intended to obscure their ultimate use or destination.
As a result of this action, all property belonging to designated persons within U.S jurisdiction is blocked; U.S persons are prohibited from transactions involving these parties unless specifically licensed by OFAC regulations. Violations may result in civil or criminal penalties for both U.S.-based or foreign entities engaged with sanctioned parties.
OFAC emphasizes that while designations serve national security objectives by blocking illicit funding channels, there remains an established process for petitioning removal from sanctions lists if warranted under law.
