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 Houthis have 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.
The Houthis seized power in Yemen in late 2014 and control
most parts of the country including the capital Sanaa. They have also launched
missiles and drones towards Israel, hundreds of kilometres to the north. Israel
has responded by striking Houthi areas on several occasions. Last week Israeli
warplanes bombed two ports and a power station.
The US alongside Britain launched a multinational operation
in December 2023 to safeguard commerce in the Red Sea, and has repeatedly
conducted air strikes 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 that engage in certain
transactions with it also risk being hit with US sanctions.
