U.S. Designates Yemen's Houthis as Terrorist Group

The U.S. State Department announced on Tuesday that it has officially designated Yemen’s Iran-aligned Houthi movement as a "foreign terrorist organization," following through on a move initially proposed by President Donald Trump earlier this year. The designation, which imposes sanctions and penalties on individuals or entities providing “material support” to the group, was reinstated by Secretary of State Marco Rubio.

Houthi Attacks on Maritime Trade Prompt Designation

In a statement, Rubio highlighted the Houthis' recent activities as a key factor behind the decision. “Since 2023, the Houthis have launched hundreds of attacks against commercial vessels in the Red Sea and Gulf of Aden, as well as U.S. service members defending freedom of navigation and our regional partners,” he said. Rubio also noted that the group has selectively targeted American and allied vessels while sparing Chinese-flagged ships, raising concerns about their strategic intentions.

The Houthis' actions, Rubio added, “threaten the security of American civilians and personnel in the Middle East, the safety of our closest regional partners, and the stability of global maritime trade.” He emphasized that the U.S. “will not tolerate any country engaging with terrorist organizations like the Houthis in the name of practicing legitimate international business.”

Since the outbreak of the Israel-Hamas war in Gaza in October 2023, the Houthis have targeted over 100 merchant vessels in the critical Red Sea trade corridor using missiles and drones. Although the group signaled in January that it would limit its attacks to Israeli-affiliated ships following a Gaza ceasefire, it warned that broader assaults could resume if necessary.

Reversal of Biden Administration Policy

The Trump administration had previously designated the Houthis as a foreign terrorist organization in its final days, but the Biden administration revoked the designation shortly after taking office in 2021. The reinstatement of the designation marks a significant policy shift and underscores the U.S. government’s growing concerns over the Houthis' destabilizing activities.

In addition to the terrorist designation, the State Department’s “Rewards for Justice” program announced it would offer up to $15 million for information leading to the disruption of Houthi financing. However, the move has sparked fears that it could exacerbate Yemen’s humanitarian crisis, as importers may avoid delivering essential supplies to areas under Houthi control for fear of U.S. sanctions.

Background: Yemen’s Ongoing Conflict

The Houthis, a Shiite rebel group, have been engaged in a protracted conflict with Yemen’s internationally recognized government since 2014, when they seized control of the capital, Sana’a, and much of northern Yemen from their stronghold in Saada. The Saudi-led coalition, backed by the U.S., intervened in March 2015 to restore the government, but the war has since devolved into a stalemate, with over 150,000 casualties, including civilians and combatants.

The conflict has created one of the world’s worst humanitarian crises, with millions facing famine and disease. The U.S. designation of the Houthis as a terrorist organization risks further complicating efforts to deliver aid to Houthi-controlled areas, where the majority of Yemen’s population resides. Critics argue that the move could deepen the crisis while doing little to curb the group’s military capabilities.