The U.S. Sanctions a Financial Network Supporting Yemen's Houthis

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned 13 individuals and entities responsible for providing tens of millions of dollars in currency from the sale and shipment of Iranian goods, supported by the Islamic Revolutionary Guard Corps (IRGC), to the Houthis in Yemen. In a statement on Thursday, December 7, the department said these individuals operate as a crucial channel for transferring funds from the Islamic Republic to the Houthis through a complex network of exchange houses and companies in various countries, including Saeed Jamal, who was already on the sanctions list. Brian Nelson, the U.S. Treasury's Deputy Assistant Secretary for Terrorism and Financial Intelligence, stated, 'The Houthis continue to receive financial assistance and support from Iran, which is not surprising: illegal attacks on civilian infrastructure and commercial vessels, disrupting maritime security, and threatening international trade.' He added, 'The Treasury will continue to disrupt the financial facilitation networks and logistical networks that enable these destabilizing activities.' The Houthis have carried out numerous missile and drone attacks on civilian infrastructure in Israel and commercial vessels in the Red Sea and Gulf of Aden. U.S. warships operating in international waters have been compelled to respond to Houthi missile attacks in self-defense. The statement emphasized that 'such actions further destabilize the region and pose a risk of escalating conflict between Israel and Hamas.' Saeed Jamal was sanctioned in 2021 under an executive order by the U.S. President aimed at combating terrorism for providing material support or financial, material, or technological assistance to the IRGC's Quds Force, which itself was sanctioned in 2007 for supporting several terrorist groups. The U.S. Treasury's statement referenced exchange houses in Turkey, Lebanon, and the United Arab Emirates, stating that Saeed Jamal and the IRGC have used these exchange houses to transfer millions of dollars from the Islamic Republic's financial resources derived from the sale of goods and services to Houthi exchange houses in Yemen. The statement also mentioned shipping companies collaborating with Saeed Jamal and the IRGC in the transfer of goods. While the Islamic Republic has recently made significant efforts to deny any involvement in Hamas's attacks on Israel, attacks on vessels in the Middle East, and assaults on American and Western forces and facilities in the region, a senior IRGC official on Thursday, December 7, acknowledged the Islamic Republic's military support for the Houthis and Hamas, threatening that vessels flying the Israeli flag 'will certainly be hit.' Jake Sullivan, the White House National Security Advisor, also stated in a press conference on Monday, December 4, that Washington believes, based on evidence and reasoning, that these attacks, while carried out by the Houthis in Yemen, are entirely made possible by Iran. He continued, 'We do not believe that all three attacked vessels are linked to Israel. The actions of the Houthis are effectively a threat to international peace and stability and are a source of concern, and the U.S. is consulting with its partners to respond and make future decisions and actions.' The U.S. Central Command (CENTCOM) confirmed in a statement the occurrence of four attacks on three commercial vessels in international waters of the Red Sea on Sunday, December 2, stating that the USS Carney destroyer responded to calls from these vessels and assisted them. On Monday, the U.S. Department of Defense, the Pentagon, announced that although there was no evidence that the Iran-backed Houthis intended to target American warships, the U.S. Navy has recently responded by downing drones and missiles fired by this Iran-supported group. Britain condemned the recent attacks on commercial vessels in the Red Sea and accused the Islamic Republic of Iran of being responsible for these attacks due to its support for Houthi militants. Meanwhile, Josep Borrell, the European Union's foreign policy chief, on Monday, December 4, called on Amir-Abdollahian of the Islamic Republic of Iran to use its influence and actively work to prevent further escalation of conflicts in the region. Since the outbreak of war between Israel and the Palestinian militant group Hamas in mid-October, the United States has held the Houthis responsible for a series of attacks in the waters of the Middle East. The Houthis of Yemen, who control most of Yemen's Red Sea coast, had previously fired ballistic missiles and suicide drones towards Israel and pledged to target more Israeli vessels. Given the Houthi attacks in the Red Sea and separate attacks by Iran-backed militants against American forces in Iraq and Syria, U.S. national security officials are concerned about the risk of sudden and deadly regional escalation. The U.S. has repeatedly stated that it has conveyed messages to Iran not to widen the scope of military conflict between Hamas and Israel. To demonstrate its seriousness regarding this warning, the U.S. has deployed two aircraft carrier strike groups to the region, one of which, the Eisenhower strike group, has entered the Persian Gulf.