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Economic restrictions imposed on oil and gas deliveries directed towards the Houthis in Yemen by the United States government

U.S. imposes sanctions on three vessels and their owners for oil and gas supply to Yemen's Houthis, escalating pressure on Iran-backed rebels over Red Sea shipping attacks. Sanctions affect Marshall Islands-registered Zaas Shipping & Trading Co and Great Success Shipping.

Economic restrictions imposed on oil and gas deliveries directed towards the Houthis in Yemen by the United States government

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America slapped sanctions on three ships and their owners this Monday, accusing them of transporting oil and gas products to Yemen's Houthis, escalating the US's pressure on the Iran-backed rebels over their attacks on Red Sea shipping.

The sanctions hit Marshall Islands-based Zaas Shipping & Trading Co and Great Success Shipping Co, and a Mauritius-registered company called Bagsak Shipping Co, along with the vessels they used to deliver oil and gas products to the Houthis' controlled port of Ras Isa, as stated by the US Treasury Department.

"Today's move demonstrates our resolve to disrupt the Houthis' illicit activities in the region," Deputy Secretary of the Treasury Michael Faulkender announced.

The sanctions were levied merely hours after reports surfaced of a US airstrike on a detention facility for African migrants in Yemen, which resulted in the tragic death of 68 individuals.

In March, the US labelled the Houthis as a "Foreign Terrorist Organization," accusing them of endangering American civilians and personnel, regional partners, and global maritime trade, alongside disrupting global commerce, stoking fears of inflation, and deepening concerns about the aftermath of the Israel-Hamas conflict.

The Houthis' attacks on ships, which they claim are in solidarity with Palestinians in Gaza, threaten global trade security.

The group has controlled the most populated regions of Yemen since they ousted the government in 2014, including the capital Sanaa.

In line with the US's commitment to ensure freedom of navigation in the Red Sea, the State Department spokesperson Tammy Bruce stated, "We aim to disrupt the Houthis' illicit revenue generation, financial facilitators, and suppliers."

Additional Insights:The sanctions follow the Houthis' redesignation as a Foreign Terrorist Organization (FTO) on March 4, 2025. The targeted entities include Zaas Shipping & Trading Co (Marshall Islands), Great Success Shipping Co (Marshall Islands), and Bagsak Shipping Inc. (Mauritius), which have been using vessels such as the Tulip BZ, Maisan, and unnamed cargo vessels for delivering oil derivatives on Iran's behalf. The sanctions are based on Executive Order 13224, counterterrorism authority. The moves aim to disrupt the Houthis' revenue generation, financial facilitators, and suppliers, with the US concerned about Iran's influence and potential threats to maritime security.

  1. The escalating US pressure on the Iran-backed Houthis in Yemen's war-and-conflicts over their attacks on Red Sea shipping, as seen in the airstrike and recent sanctions, is a clear political move demonstrating the US's resolve to disrupt the Houthis' illicit activities.
  2. The latest sanctions on three ships and their owners, including Zaas Shipping & Trading Co, Great Success Shipping Co, and Bagsak Shipping Co, have been implemented in crime-and-justice efforts to counter terrorism, following the Houthis' redesignation as a Foreign Terrorist Organization.
  3. The Houthis' oil and gas product shipments to their controlled port of Ras Isa, as per the US Treasury Department's statement, have been identified as a threat to global trade security, affecting both general-news and shipping sectors.
  4. The Houthis' actions in solidarity with Palestinians, such as attacking ships, have been a significant concern for the US, with Deputy Secretary of the Treasury Michael Faulkender stating that today's sanctions are meant to disrupt their illicit activities in the region.
  5. The US State Department spokesperson, Tammy Bruce, affirmed the US's commitment to ensure freedom of navigation in the Red Sea, stating that the sanctions aim to disrupt the Houthis' illicit revenue generation, financial facilitators, and suppliers, thereby mitigating potential threats to maritime security.
U.S. enacts sanctions against three vessels and their owners on Monday due to supplying oil and gas products to Yemen's Houthis. The measures, a part of Washington's strategy to exert pressure on the Iran-supported insurgents, result from their continued attacks on shipping in the Red Sea. The sanctioned companies include Zaas Shipping & Trading Co, registered in the Marshall Islands, along with Great Success Shipping.

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