The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on three vessels and their owners for supporting the Houthis, part of Iran’s network of proxies. The agency's action is in response to the Houthis' deployment of weapons to disrupt commercial shipping in the Red Sea, posing risks to global navigation and commerce. According to the Treasury's Deputy Secretary, Michael Faulkender, this move reflects their ongoing effort to undermine efforts by the Houthis to finance attacks in the region.
The sanctions were enacted under the counterterrorism authority of Executive Order (E.O.) 13224, building upon past actions against Houthi leadership and financial networks. The U.S. State Department officially declared the Houthis as a Specially Designated Global Terrorist organization in February 2024, and reaffirmed their status as a Foreign Terrorist Organization in March 2025.
The actions of Zaas Shipping & Trading Co, Bagsak Shipping Inc, and Great Success Shipping Co involve the delivery of refined petroleum products to Houthi-controlled ports after the expiration of the OFAC's general license. The Tulip BZ, Maisan, and White Whale vessels — flagged in San Marino and Panama — are among the ships used for these deliveries, which occurred post expiry of the general license on April 4, 2025.
The Houthis gain significant revenue from controlling key Red Sea ports, using this for military purchases and to fuel rampant corruption. Transactions with designated entities now carry sanctions risk, and engaging with them can lead to secondary sanctions. Violations of these sanctions could result in penalties.
OFAC emphasized that these sanctions are politically motivated not to punish but initiate positive changes. Information on how to request removal from the Specially Designated Nationals and Blocked Persons (SDN) List is available from OFAC.