US Sanctions Yemen Bank As Houthi Red Sea Attacks Disrupt Global Shipping And Trade

Sanctions imposed by United States on Yemen Kuwait Bank accused the latter of financial support for the Iran-backed Houthi rebels, escalating what was previously part of a less robust push under President Joe Biden.

US Treasury Department alleged that Yemen Kuwait Bank assisted money laundering and moving funds for Houthis, whom it claimed, helped their partners, such as Lebanon’s Hezbollah. This designation freezes any property of the bank inside the United States and bars any US person from dealings with the bank. Those engaging with the bank may also become subject to the US sanctions.

Houthis, who have controlled Yemen since 2014, have conducted more than 100 attacks on ships since November 2023. These attacks have affected global shipping; some ships have resorted to circumnavigating southern Africa to avoid the Suez Canal. The attacks have pushed up insurance premiums, delivery costs, and transit times, adding to the list of inflation concerns worldwide.

The Houthis have also launched missile and drone attacks towards Israel, which has resulted in retaliatory strikes by Israeli forces, including recent bombings of ports and a power station. In response to the increasing threat in the Red Sea, the US and Britain initiated a multinational operation in December 2023 to secure commercial routes and have conducted airstrikes targeting Houthi weapons storage sites.

The sanctions reflect the Biden administration’s intensified stance on the Houthis, aiming to curb their influence and actions that destabilize the region. This move comes just days before President-elect Donald Trump’s inauguration, signaling continued US involvement in the conflict.