WASHINGTON – The U.S. has imposed sanctions on Yemen Kuwait Bank, accusing it of financially supporting the Houthis, a militant group that has carried out numerous attacks on ships and disrupted global shipping.
The U.S. Treasury Department announced the sanctions, which freeze any of the bank’s U.S. assets and bar Americans from dealing with it. The move is aimed at further pressuring the Houthis before President Joe Biden leaves office.
The Houthis, backed by Iran, have been accused of exploiting the Yemeni banking sector to launder money and transfer funds to allies, including Lebanon’s Hezbollah. The group has carried out over 100 attacks on ships since November 2023, including sinking two vessels, seizing another, and killing at least four seafarers.
The attacks have disrupted international commerce, forcing some ships to take a longer route around southern Africa rather than the Suez Canal, leading to increases in insurance rates, delivery costs, and time that have stoked global inflation fears.
The Houthis seized power in Yemen in late 2014 and control most parts of the country, including the capital Sanaa. They have also launched missiles and drones towards Israel, hundreds of kilometers to the north. Israel has responded by striking Houthi areas on several occasions.
The U.S. has launched a multinational operation to safeguard commerce in the Red Sea and has conducted air strikes on Houthi strongholds targeting weapons storage facilities. Those that engage in certain transactions with Yemen Kuwait Bank also risk being hit with U.S. sanctions.