Chants of 'Death to America, Death to Israel' at Sanaa rally

US imposes sanctions on Yemeni bank accused of financing Houthis

US Treasury Department designates Yemen Kuwait Bank, saying Houthis exploit Yemeni banking sector to launder money and transfer funds to Hezbollah, facilitate Iran oil sales

A demonstrator holds a rifle during a rally to denounce Israel and in solidarity with Palestinians in the Houthi-controlled capital Sanaa, on January 17, 2025. (Mohammed HUWAIS / AFP)
A demonstrator holds a rifle during a rally to denounce Israel and in solidarity with Palestinians in the Houthi-controlled capital Sanaa, on January 17, 2025. (Mohammed HUWAIS / AFP)

The US on Friday imposed sanctions on a Yemen-based financial institution that Washington accused of financially supporting the Houthis, as President Joe Biden’s administration sought to further pressure the militant group before Biden leaves office.

The US Treasury Department in a statement said it imposed sanctions on Yemen Kuwait Bank, accusing it of helping the Houthis exploit the Yemeni banking sector to launder money and transfer funds to allies, including Lebanon’s Hezbollah.

The US additionally said the bank helped the Houthis establish and finance front companies to facilitate Iranian oil sales.

The Houthis seized power in Yemen in late 2014 and control over most parts of the country including the capital Sanaa.

According to the Israel Defense Forces, the Houthis have launched some 40 ballistic missiles at Israel as well as dozens of drone attacks since Hamas invaded Israel on October 7, 2023, which killed some 1,200 people and took 251 hostages, starting the multifront war. Israel has responded by striking Houthi areas on several occasions.

The Iran-backed Houthis have also carried out more than 100 attacks on ships since November 2023. They have sunk two vessels, seized another, and killed at least four seafarers. The intensity of the attacks has disrupted global shipping and prompted route changes.

The attacks have disrupted international commerce, forcing some ships to take the long route around southern Africa rather than the Suez Canal, leading to increases in insurance rates, delivery costs, and time that stoked global inflation fears.

Yemenis raise flags during a rally to denounce Israel and in solidarity with Palestinians in the Houthi-controlled capital Sanaa, on January 17, 2025 (Mohammed HUWAIS / AFP)

The US alongside Britain launched a multinational operation in December 2023 to safeguard commerce in the Red Sea and has repeatedly conducted airstrikes on Houthi strongholds targeting weapons storage facilities.

Biden’s action, ahead of the inauguration on Monday of President-elect Donald Trump, freezes any of Yemen Kuwait Bank’s US assets and generally bars Americans from dealing with it. Those who engage in certain transactions with it also risk being hit with US sanctions.

Earlier Friday, thousands of Yemenis crowded the capital to express their support for the Houthis, who say they will maintain pressure on Israel despite the imminent Gaza ceasefire and hostage deal, due to begin Sunday.

Yemenis raise flags during a rally to denounce Israel and in solidarity with Palestinians in the Houthi-controlled capital Sanaa, on January 17, 2025 (Mohammed HUWAIS / AFP)

Every week for the past 15 months, people have filled the center of the rebel-held city on the Muslim day of prayer and rest to chant their backing for the Palestinians.

A Houthi rebel, Khaled al-Matri, told AFP he supported the ceasefire deal for Gaza.

But he added: “We will not give in until the disappearance of the Zionist state, God willing”, before breaking into chants of “Death to America, death to Israel!”

Times of Israel staff contributed to this report.

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