U.S. Targets Ship Captains in Crackdown on Houthi Oil Smuggling Networks

The U.S. Department of the Treasury has expanded its sanctions campaign against Yemen’s Houthi movement by targeting ship captains and related entities involved in transporting petroleum products to Houthi-controlled ports. The action is part of Washington’s ongoing efforts to disrupt revenue streams that fund militant operations in the Red Sea region.

Treasury’s Office of Foreign Assets Control (OFAC) designated 21 individuals and entities, including several vessel captains and one ship, for facilitating oil transfers, providing financial services, and procuring resources for the Houthis. Officials said the sanctions are aimed at curbing illegal maritime operations that support the group’s armed activities and destabilizing efforts.

Several captains were specifically cited for conducting oil deliveries to Houthi ports after a humanitarian general license had expired. Among those designated is the captain of the vessel ALBARRAQ Z, which reportedly discharged petroleum products at Ras Isa port in mid-2025, well after the allowed period. Other sanctioned captains oversaw the shipment of gasoline and liquefied petroleum gas earlier in the year.

The sanctions also target front companies and facilitators based in Yemen, Oman, and the United Arab Emirates, which U.S. officials say help the Houthis generate significant revenue from illicit oil sales. These networks are believed to provide critical financial support for the group’s operations and attacks on commercial shipping in key waterways.

Treasury Secretary Scott Bessent emphasized that the Houthis continue to threaten U.S. and international interests through attacks on vessels and other destabilizing actions. He stressed that the department will continue using all available tools to disrupt the financial and logistical networks sustaining the militant organization.

Designated individuals and entities are barred from accessing any property or financial interests under U.S. jurisdiction. Foreign financial institutions facilitating transactions for these sanctioned actors may also face secondary sanctions, signaling heightened scrutiny for maritime operators involved in the region.