Business

US Sanctions Firms Funding Iranian-Backed Houthi Attacks In Red Sea

(Photo by -/AFP via Getty Images)

Daily Caller News Foundation logo
Will Kessler Contributor
Font Size:

The U.S. Treasury Department on Thursday placed sanctions on one individual and three exchange houses thought to be financing the recent Houthi rebel attacks disrupting trade in the Red Sea.

Yemen-based Houthis backed by Iran have launched a number of attacks on ships going through the Red Sea since Oct. 7, resulting in a number of top shipping companies rerouting around the tip of Africa instead of through the Suez Canal. The resulting sanctions target the head of the Currency Exchange Association in Sana’a, Yemen, and three firms in either Turkey or Yemen that facilitate currency exchanges, according to a press release from the Treasury. (RELATED: Iran Claims Oct. 7 Terrorist Attacks Were Revenge For Soleimani’s Death)

“Today’s action underscores our resolve to restrict the illicit flow of funds to the Houthis, who continue to conduct dangerous attacks on international shipping and risk further destabilizing the region,” Brian E. Nelson, undersecretary of the Treasury for terrorism and financial intelligence, said in the release. “The United States, along with our allies and partners, will continue to target the key facilitation networks that enable the destabilizing activities of the Houthis and their backers in Iran.”

The sanctions aim to cut the link that Sa’id al-Jamal, who is affiliated with Iran’s Islamic Revolutionary Guard Corps-Quds Force, is using to transfer millions of dollars to the Houthis perpetrating the attacks on commercial ships, according to the Treasury.

Funds supplying the Houthi rebels have flowed through the firm Al Aman Kargo Ithalat Ihracat Ve Nakliyat Limited Sirketi in Turkey from Iran, which is then funneled to Nabco Money Exchange and Remittance Co. in Yemen, which is headed by Nabil Ali Ahmed Al-Hadha, who was personally a target of sanctions.

As of last week, Houthis have launched more than 100 attacks on 14 commercial vessels traveling through the Red Sea since the attacks began in October, according to CNN. U.S. naval forces shot down a dozen Houthi suicide drones, three anti-ship ballistic missiles and two land-based cruise missiles directed at vessels traveling through the Red Sea on Tuesday.

In response to the attacks, U.S. Secretary of Defense Lloyd Austin announced on Dec. 18 that the U.S. would be leading an international coalition to ensure maritime security in the Red Sea region called Operation Prosperity Guardian. The initiative will provide some security in the region but will stop short of escorting vessels.

The attacks along the popular Red Sea route are threatening to disrupt global markets by delaying shipping times and increasing good prices and logistical expenditures. Top shipping companies Maersk, COSCO and CMA CGM have seen their shipping routes harmed by the attacks.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.