U.S. Imposes Additional Sanctions Targeting Houthi and Hizballah Trade Networks

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued additional sanctions against multiple entities and individuals involved in shipping Iranian commodities to Yemen and the UAE, under the direction of Iran-based Houthi financier Sa’id al-Jamal.

The sanctions aim to disrupt the funding sources for the Yemen-based Houthis and Iran’s IRGC-QF, both of which are designated terrorist organization. Revenue generated by al-Jamal’s network supports the Houthis’ aggressive attacks against ships in the Red Sea and civilian infrastructure.

OFAC has also updated the Specially Designated Nationals and Blocked Persons List (SDN List) for the vessel ARTURA, now renamed OHAR, which was responsible for transporting commodities for al-Jamal.

“Today’s action underscores our continued commitment to disrupting Iran’s primary source of funding to its regional terrorist proxies like Lebanese Hizballah and the Houthis,” stated Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, Bradley T. Smith. “Our message is clear: those who seek to finance these groups’ destabilizing activities will be held to account.”

Additionally, OFAC has designated Hong Kong-based Kai Heng Long Global Energy Limited for its role in shipping Iranian LPG worth tens of millions of dollars for Lebanese Hizballah. Four vessels owned and managed by the company have also been identified as blocked property.

Sa’id al-Jamal’s network uses various shipping companies and facilitators to move Iranian commodities. The Palau-flagged LPG tankers LPG OM and RAHA GAS, owned by Marshall Islands-registered KDS Shipping Limited and Arafat Shipping Company, respectively, have made multiple shipments for al-Jamal. UAE-based ONX Trading FZE facilitated illicit payments for these operations. These entities and individuals are now designated under E.O. 13224.

The Palau-flagged products tanker DIVINE POWER, owned by Marshall Islands-registered DP Shipping Limited, has shipped millions of dollars’ worth of fuel oil to the UAE for al-Jamal’s network. Malaysia-based Transmarine Navigation (M) SDN. BHD. and UAE-based K F D General Trading L.L.C. have also been designated for their roles in facilitating the transportation of Iranian commodities.

In addition, Hong Kong-based Kai Heng Long Global Energy Limited, as the manager and owner of several LPG tankers, has been sanctioned for shipping Iranian LPG for Lebanese Hizballah. The U.S. Treasury previously designated the Talaqi Group, which used these tankers to transport LPG worth tens of millions of dollars from Iran to the PRC.

The sanctions by the U.S. Treasury’s OFAC reflect ongoing efforts to curb the financial networks supporting regional terrorism. Since November 2023, the Houthis have carried out more than 100 drone and missile attacks against commercial shipping in the Red Sea and Gulf of Aden in support of Palestinians in the Israel-Hamas war.

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