On June 20, 2025, the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC") announced its most extensive action to date against Iran-backed, US-designated terrorist group Ansarallah, commonly referred to as the Houthis. This action targeted a wide range of individuals, entities, and vessels involved in the importation of oil and other illicit goods that support the group's operations. The sanctions were issued under Executive Order 13224 and follow a series of previous OFAC actions targeting the terrorist group's activities in several sectors. The U.S. Department of State previously designated the group as a Specially Designated Global Terrorist on February 16, 2024, and re-designated it as a Foreign Terrorist Organization on March 4, 2025. We last reported on OFAC action against the group on March 21, 2025.
Targeted Entities and Individuals
OFAC's latest action responds to the continued delivery of refined petroleum products to ports under Houthi control. These deliveries generate substantial revenue for the terrorist group, which is used to fund military operations, distort local markets, and sustain systemic corruption in the region. The petroleum products are sold at inflated prices on the black market, exacerbating economic hardship for civilians and contributing to regional instability.
Following this latest action, OFAC has sanctioned several shipping companies, individuals, and vessels that facilitated these deliveries after the expiration of Counter Terrorism General License 25A, in violation of U.S. sanctions programs. Some of the designated entities are also linked to broader networks involved in the export of Iranian and Russian oil. These measures are part of OFAC's broader strategy to disrupt financial and logistical support to the terrorist group and reinforce compliance with international sanctions in the region. For a full list of designated individuals and entities pursuant to this action, please refer to OFAC's Specially Designated Nationals List Update.
Geopolitical Context
This latest round of sanctions coincides with a period of heightened military and diplomatic tension involving the U.S., Israel, Iran, and the E.U. A recent U.S. airstrike campaign targeted Iranian nuclear facilities in response to escalating hostilities between Iran and Israel, occurring just days after the sanctions were announced. While a ceasefire has since been declared, the situation remains volatile. These developments have further complicated diplomatic efforts and introduced new urgency and uncertainty into the broader geopolitical landscape.
OFAC Designation Implications
As a result of OFAC's designations, all property and interests in property of the targeted individuals and entities that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
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