US imposes sanctions on Yemen Kuwait Bank over Houthi support

The United States on Friday imposed sanctions on a Yemen-based financial institution accused of financially supporting the Houthis as President Joe Biden’s administration sought to intensify pressure on the group before his term ends.

The US Treasury Department announced sanctions on Yemen Kuwait Bank, alleging its involvement in helping the Houthis exploit Yemen’s banking sector for money laundering and transferring funds to allies including Lebanon’s Hezbollah.

The Iran-backed Houthis have conducted over 100 attacks on ships since November 2023, sinking two vessels, seizing another and killing at least four seafarers. These attacks have severely disrupted global shipping, prompting some vessels to reroute around southern Africa instead of using the Suez Canal.

This disruption to international trade has driven up insurance premiums, delivery costs, and transit times, fueling concerns over rising global inflation.

The Houthis seized power in Yemen in late 2014 and controlled most parts of the country including the capital Sanaa. They have also launched missiles and drones toward Israel, hundreds of kilometers to the north. Israel has responded by striking Houthi areas on several occasions. Last week Israeli warplanes bombed two ports and a power station.

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The U.S. alongside Britain launched a multinational operation in December 2023 to safeguard commerce in the Red Sea, and has repeatedly conducted air strikes on Houthi strongholds targeting weapons storage facilities.

Biden’s action, ahead of the inauguration on Monday of President-elect Donald Trump, freezes any of Yemen Kuwait Bank’s U.S. assets and generally bars Americans from dealing with it. Those that engage in certain transactions with it also risk being hit with U.S. sanctions.

With inputs from agencies.