Washington, Jan 17 (Reuters) - The United States imposed sanctions on a Yemen-based financial institution on Friday for allegedly supporting the Houthis financially as part of President Joe Biden's administration's efforts to increase pressure on the militant group before Biden's term ends.
The U.S. Treasury Department announced the sanctions on Yemen Kuwait Bank, accusing it of aiding the Houthis in exploiting the Yemeni banking system for money laundering and transferring funds to allies, like Lebanon's Hezbollah.
The Houthis, backed by Iran, have carried out multiple attacks on ships since November 2023, sinking two vessels, capturing one, and causing the deaths of at least four seafarers. These aggressive acts have disrupted global shipping, leading to altered routes.
The incidents have significantly impacted international trade, forcing ships to take longer routes around southern Africa instead of using the Suez Canal, resulting in increased insurance premiums, delivery costs, and time, fueling concerns about global inflation.
The Houthis took control of Yemen in late 2014 and currently hold power in most regions, including the capital, Sanaa. They have launched missile and drone attacks toward Israel, hundreds of kilometers away to the north, prompting Israeli airstrikes on Houthi territories, including two ports and a power station last week.
The U.S. and Britain initiated a joint operation in December 2023 to protect Red Sea commerce and have conducted airstrikes on Houthi bases targeting weapon facilities.
President Biden's actions, preceding President-elect Donald Trump's inauguration, entail freezing Yemen Kuwait Bank's U.S. assets and prohibiting Americans from engaging in transactions with the institution under the threat of U.S. sanctions.