On October 2, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a new series of sanctions aimed at disrupting the supply chains supporting the Houthi militants in Yemen. These measures target arms suppliers, procurement networks, and oil tankers linked to the Houthis, with the goal of weakening the group’s military capabilities.
Focus on Arms Procurement and Suppliers
The new sanctions specifically focus on companies in China and Iran, which the U.S. has recognized as critical contributors to the Houthi supply chain. U.S. officials report that procurement operatives and suppliers in these countries have enabled the Houthis to obtain dual-use materials. These materials, which can be used for both civilian and military purposes, are critical for the Houthis’ ability to manufacture, maintain, and deploy their missile and unmanned aerial vehicle (UAV) arsenal.
According to the U.S. Department of the Treasury, several Chinese companies are involved in this procurement network. Shenzhen Boyu Imports and Exports Co., a logistics and shipping firm based in China, has been identified as facilitating multiple shipments of components for use in the Houthi militants’ weapons production. These shipments reportedly included military-grade components used in missile and UAV development.
The U.S. also sanctioned Shenzhen Jinghon Electronics and Shenzhen Rion Technology Co., two Chinese companies accused of supplying dual-use components to the Houthis. OFAC reported that these companies supplied tens of thousands of dollars’ worth of materials used in the production of missiles and UAVs. In particular, Shenzhen Rion Technology Co. was cited for sourcing components essential for manufacturing missile guidance systems. This company had previously been designated for providing material support to Iran’s Ministry of Defense and Armed Forces Logistics.
The U.S. Treasury noted that these procurement efforts are part of a larger network that spans multiple countries. By targeting these suppliers, the sanctions are designed to cut off the Houthis’ access to the materials necessary to sustain their military operations.
Sanctions on Tankers Linked to Oil Shipments
In addition to targeting arms suppliers, the U.S. sanctions also focus on disrupting oil shipments used to fund the Houthi militants. Two oil tankers, the Izumo and the Frunze, have been designated under the sanctions for their involvement in transporting oil on behalf of the Houthis and Iran.
Houthi Rebels Target Commercial Shipping in the Red Sea Amid Regional Conflict
The Izumo, a 150,000-deadweight-ton (dwt) crude oil tanker flagged in Gabon, was built in 2001 and has been identified as transporting petroleum products for both Iranian and Houthi interests. The U.S. Treasury linked the vessel to illegal oil shipments that are used to finance the Houthis’ military activities. According to U.S., these shipments are part of a broader effort to smuggle Iranian oil and evade international sanctions.
Similarly, the Frunze, a Cook Islands-flagged oil tanker with a deadweight tonnage of 105,000, was also sanctioned. The vessel, built in 2003, has been linked to the transport of Iranian oil, with reports suggesting that it has also been involved in shipments of Russian oil. Both tankers are said to be managed by a shipping company located in China. By designating these vessels, the U.S. aims to prevent further oil shipments that provide financial resources for the Houthis and their regional allies.
Israel Issues Stern Warning After Houthi Missile Attack
Broader U.S. Efforts Against the Houthi Suppliers
These sanctions are the most recent measures implemented by the U.S. to undermine the funding and supply networks of the Houthi militants. Over the past several years, the Houthis have continued to engage in military operations, including missile strikes and UAV attacks, that have targeted civilian vessels, populations, and infrastructure in the region. The U.S. has accused the Houthis of leveraging their network of companies and procurement operatives to acquire weapons and sustain these attacks.
Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, remarked on the sanctions, affirming that the U.S. is dedicated to employing all available resources to disrupt the supply chain networks that sustain the Houthis. He emphasized that the Houthis’ ongoing attacks on civilian vessels and populations are a major concern and that the sanctions are designed to limit their ability to carry out these operations.
The sanctions announced by OFAC on October 2 target key components of the Houthi militants’ supply chain, including arms suppliers in China and Iran, as well as oil tankers involved in illicit shipments. By focusing on these areas, the U.S. seeks to choke off the flow of weapons, materials, and financial resources that sustain the Houthi military campaign. The action marks a continued effort by the Biden administration to weaken the Houthis through economic and logistical measures, while also addressing the role of international suppliers in supporting the group’s operations.
