US Slams Houthis as Iran-Backed ‘Economic Mafia’: Vows Sanctions to Cripple Terror Finances

During a UN Security Council briefing on Yemen, U.S. Ambassador Dorothy Shea condemned Houthi rebels for escalating regional instability, obstructing humanitarian aid, and perpetuating a dire humanitarian crisis. The remarks underscored the U.S. designation of the Houthis as a Foreign Terrorist Organization (FTO) and called for international accountability over Iran’s support for the group.

Ambassador Shea reaffirmed the Biden administration’s commitment to enforcing sanctions aimed at crippling Houthi capabilities while safeguarding humanitarian aid for Yemeni civilians. “Our sanctions target the Houthis’ illicit revenue streams, not the Yemeni people suffering under their repression,” she stated. The U.S. also vowed to counter Iran’s backing of Houthi activities, citing Tehran’s violations of UN arms embargoes.

The ambassador referenced President Trump’s 2021 executive order redesignating the Houthis as an FTO, a move retained under current policy. She warned of further consequences if Houthi attacks resume in the Red Sea, on Israel, or against international shipping lanes, emphasizing that the group’s indiscriminate tactics “endanger global commerce and regional stability.”

Shea condemned the Houthis’ obstruction of aid delivery, including the recent suspension of UN operations in Sa’adah governorate due to threats against humanitarian workers. She highlighted the death of a World Food Program employee in Houthi custody and demanded the immediate release of detained UN staff, NGO workers, and diplomats.

The envoy detailed Houthi “economic repression,” including extortion of businesses and forced financial schemes targeting Yemeni money exchangers. She also criticized the group’s use of sham judicial proceedings to justify unlawful detentions and potential executions, urging donors to prepare responses to protect aid workers from further abuses.

The ambassador linked Houthi actions to Iranian support, noting Hamas’ public encouragement of Houthi attacks. “Iran-enabled terrorist groups threaten not just Yemen but the entire region,” she said, rejecting “false moral equivalency” between Houthi aggression and regional conflicts. She stressed that Houthi attacks “do nothing for Palestinians” and instead deepen Yemen’s suffering.

The U.S. envoy says the Houthis’ obstruction of critical aid deliveries has exacerbated humanitarian crises, including last year’s deadly cholera resurgence fueled by collapsed sanitation systems and restricted access to medical supplies. Meanwhile, their self-proclaimed authorities systematically harass civilians and extort local businesses through arbitrary fees and intimidation tactics. In a recent escalation, the group has coerced Yemeni money exchangers into purchasing shares in a Houthi-controlled financial network – a scheme consolidating coercive economic dominance over the private sector.

Shea urged the Security Council to bolster the UN Verification and Inspection Mechanism (UNVIM), which monitors maritime shipments to Yemen, by increasing funding and inspection capacity. She called on member states to enforce arms embargoes and cease “excuses” for Houthi conduct, emphasizing collective responsibility under UN resolutions.

The U.S. envoy reiterated Washington’s resolve to counter Houthi destabilization and protect international interests, warning against further escalation. As Yemen’s humanitarian crisis worsens, the briefing underscored growing urgency for a coordinated global response to address both the conflict’s roots and its devastating human toll.