US imposes sanctions targeting oil, gas deliveries to Yemen’s Houthis

The United States has escalated its efforts to disrupt the financial lifelines of Yemen’s Houthi rebels, imposing sanctions on entities and individuals involved in the illicit trade of oil and gas that funds the group’s military operations, the US Department of the Treasury announced.

The measures aim to curb the Houthis’ ability to procure revenue through petroleum sales, which supports their attacks on commercial shipping and regional destabilization.

On April 22, 2025, the Treasury’s Office of Foreign Assets Control (OFAC) designated Iranian national Seyed Asadoollah Emamjomeh and his corporate network, responsible for shipping hundreds of millions of dollars’ worth of Iranian liquified petroleum gas (LPG) and crude oil to global markets.

Emamjomeh’s network, including the vessel TINOS I, attempted to load cargo off Houston, Texas, in 2024 but failed. The Treasury stated that these revenues fund Iran’s nuclear programs and proxy groups like the Houthis, Hezbollah, and Hamas. “Emamjomeh’s network sought to evade US sanctions to generate revenue for Iran,” said Treasury Secretary Scott Bessent.

China has also faced US scrutiny for its role in purchasing Iranian oil linked to the Houthis. On March 20, 2025, OFAC sanctioned Shandong Shouguang Luqing Petrochemical Co., Ltd., a Chinese “teapot” refinery, for buying approximately USD 500 million in Iranian crude, some transported by Houthi-linked vessels like the MEHLE and KOHANA. Beijing criticized the sanctions, with Foreign Ministry spokesperson Mao Ning accusing the US of undermining legitimate trade with Iran.

The sanctions freeze US-based assets of designated entities and prohibit Americans from conducting business with them, with risks of secondary sanctions for foreign entities engaging in these transactions. The US aims to reduce Iran’s oil exports to zero, as outlined in National Security Presidential Memorandum 2 issued on February 4, 2025.

Analysts warn that while these measures increase pressure on the Houthis and Iran, they risk escalating regional tensions and could impact global oil prices, which rose slightly after US strikes in Yemen. The Houthis remain defiant, with thousands protesting in Sanaa against US actions, signaling continued resistance.