The U.S. Department of the Treasury has made a significant move in its efforts to cut off financing for the Houthis by directly sanctioning ship captains who delivered oil products to ports controlled by the Houthis. This marks a notable escalation in actions against those involved in the global maritime supply chain.
On January 16, the Treasury's Office of Foreign Assets Control (OFAC) sanctioned 21 individuals and entities and identified one vessel that supported the Iran-backed Houthis. The Houthis have been launching drone and missile attacks on commercial vessels in the Red Sea since late 2023. Among those sanctioned were six ship captains who continued to deliver oil to Houthi-controlled ports even after regulatory deadlines had passed.
“The Houthis pose a threat to the United States by committing acts of terror and attacking commercial ships in the Red Sea. This action aims to cut off nearly two dozen individuals and entities involved in transferring oil, procuring weapons, and providing financial services for this Iran-backed terrorist group,” stated Treasury Secretary Scott Bessent. He added that the Treasury will use all available tools to expose the networks supporting Houthi terrorism.
Captains Sanctioned After Grace Period Ends
The sanctions against these captains show a clear strategy to make maritime professionals personally responsible for their part in illegal trade networks. After the Houthis were designated as a Foreign Terrorist Organization in March 2025, OFAC provided a general humanitarian license allowing ongoing petroleum deliveries to northern Yemen ports until April 4, 2025. However, many vessels continued their operations past this deadline.
Ahmad Ismail, captain of the ALBARRAQ Z, was sanctioned for delivering oil to Ras Isa port in July 2025, three months after the grace period ended. The vessel was operated by Albarraq Shipping Co., and its director, Ebrahim Ahmed Abdullah Al-Matari, was also sanctioned.
Four other captains of previously designated vessels faced sanctions for deliveries made between April and June 2025. Ahmad Adriss captained the SARAH, which delivered liquefied petroleum gas to Ras Isa in June. Ahmad Bseis was in charge of the oil tanker ATLANTIS MZ, which discharged gasoline at the same port that month. Ranveer Singh served as the captain of the AKOYA GAS during an April delivery, and Alexander Yurovich Pshenichnyy captained the VALENTE during a May gasoline delivery.
Continuing from Previous Sanctions
This action builds on OFAC's sanctions from October 2024, which included two vessel captains—Ali Barkhordar from Iran and Wahid Ullah Durrani from Pakistan—for facilitating ship-to-ship oil transfers. This brings the total number of ship captains sanctioned by OFAC for related activities to at least six, demonstrating the U.S. intention to target not just companies but also individual ship operators.
Although the last Houthi attack on commercial shipping in the Red Sea happened over three months ago, the Suez Canal is still operating well below capacity, even as shipping companies start to return to the region. According to BIMCO, traffic in early January was around 60% lower than pre-crisis levels. The maritime industry continues to face ongoing security concerns and economic unpredictability.
Disruption of a Larger Network
In addition to maritime enforcement, the latest actions by the Treasury have weakened various parts of the Houthis' financial structure. These recent sanctions targeted oil companies and financial facilitators that generate more than $2 billion a year for the Houthis through illegal oil sales. Companies affiliated with Iran based in Dubai facilitate these transactions, with the Iranian government both selling oil and providing free monthly shipments to the Houthis.
The action also targeted weapons procurement networks, including Wadi Kabir Co. for Logistics Services, which attempted to smuggle 52 Kornet anti-tank missiles hidden inside fake electric generators from Oman to Yemen in 2022. Furthermore, two Houthi-affiliated airlines, Barash Aviation and Cargo Company Limited and Sama Airline, faced sanctions for attempting to buy commercial aircraft in early 2025, working with convicted arms dealer Viktor Anatolijevitch Bout.
Impact on the Maritime Industry
The sanctions have severe implications for the global maritime industry. All properties and interests of the sanctioned individuals in the U.S. or controlled by U.S. persons are blocked and must be reported to OFAC. Additionally, foreign financial institutions could face secondary sanctions for knowingly facilitating significant transactions on behalf of these designated individuals.
This recent action showcases the Treasury's commitment to pursuing accountability throughout illegal supply chains and sends a strong message to maritime professionals around the world that participating in sanctioned activities can lead to personal legal and financial repercussions.