Key facts
- Houthi attacks have disrupted an estimated $1 trillion in maritime cargo since October 2023.
- The Houthis reportedly collect $180 million monthly in fees from ships transiting the Bab al-Mandab Strait.
- Sa’id al-Jamal is accused of masterminding Iranian oil smuggling to East Asia, including China.
- US and UK have sanctioned four Houthi military officials for their role in attacks and hostage-taking.
Asian countries should consider imposing sanctions on Yemen's Houthi rebels to curb their attacks on Red Sea shipping, according to a geostrategic analyst. The Houthis' ongoing operations in the Red Sea have affected an estimated $1 trillion worth of maritime cargo between October 2023 and May 2024. The group generates significant revenue through illicit trade and fees levied on ships transiting the Bab al-Mandab Strait, with financial networks extending to East Asia, including China.
Despite air attacks constraining local revenue, the Houthis remain financially resilient. They reportedly collect an estimated $180 million per month in fees from ships, often paid through informal Hawala networks. A Yemeni national named Sa’id al-Jamal is identified as the apparent mastermind of operations smuggling Iranian oil to East Asia, with the US Treasury's Office of Foreign Assets Control (OFAC) sanctioning him and related entities. China imports an estimated $500 million annually in Iranian oil, partly through this network.
In response to attacks on commercial vessels and taking civilian crews hostage, the US and UK have jointly imposed sanctions on four leading Houthi military officials. These sanctions aim to block property and interests within US jurisdiction and may lead to enforcement actions against non-US financial institutions engaging with the sanctioned individuals.