WASHINGTON: The United States and its allies are intensifying efforts to block funds from reaching Yemen’s Houthi group, a strategy that could jeopardize United Nations-led initiatives to end the country’s civil war, Bloomberg News has reported.
According to the report, Washington aims to block significant elements of a UN peace plan adopted by Yemen’s warring parties in December unless the Houthis cease their attacks on international shipping lanes. This includes a $1.5 billion payment by Saudi Arabia to civil servants in Houthi-controlled areas, as part of the UN roadmap.
The US continues to promote peace in Yemen, the unidentified State Department official told Bloomberg, adding that agreements related to the UN plan can only move forward if the Houthis cease their attacks.
The Houthis have been attacking ships in the Red Sea and firing missiles and drones at Israeli targets in support of Palestinians in Gaza, drawing anger from US President Joe Biden’s administration.
Despite US and allied bombings of Houthi targets in Yemen since January, the military campaign has not deterred Houthi attacks. The Houthis have vowed to continue targeting Israel-linked ships as long as the conflict in Gaza, which has claimed at least 36,654 Palestinian lives, persists. Recently, the group claimed responsibility for targeting two vessels at Israel’s Haifa port.
In March 2015, a Saudi-led military coalition launched a prolonged offensive in support of Yemen’s internationally recognized government against the Iran-allied Houthis who had taken over the Yemeni capital, Sanaa. The fighting sparked a major humanitarian crisis and turned into a protracted conflict, with the Houthis maintaining control in Sanaa and other major population centers.
The warring parties agreed to a ceasefire in April 2022, which expired in October of that year, but fighting has largely paused amid ongoing diplomatic efforts. The December UN roadmap included provisions for a nationwide ceasefire, payment of public sector salaries, resuming oil exports, opening of roads in Taiz and other parts of Yemen, and easing restrictions on Sanaa Airport and Hodeidah Port.
However, tensions between the Houthis and the internationally recognized government remain high, especially over economic issues. The US push to squeeze the Houthis’ finances risks exacerbating these tensions. Because of the Houthis’ attacks in the Red Sea, the Biden administration classified them as “global terrorists” in January, opening the door for extensive financial sanctions against the organization.
Bloomberg reported that the latest US effort coincides with the Central Bank of Yemen, suspending operations at banks in Houthi-controlled areas, including Sanaa.
The central bank’s governor cited non-compliance with orders for all financial institutions to move their headquarters to Aden. This move is expected to restrict Houthi access to foreign currency and reduce the group’s liquidity.
Houthi leader Abdul Malik al-Houthi criticized the actions against Sanaa-based banks, describing it as an “American effort for the benefit of Israel” and accused the US of dragging Saudi Arabia into the initiative. “It’s a dangerous game – a game of adding fuel to the fire,” al-Houthi said.
The office of the UN’s special envoy to Yemen, led by Hans Grundberg, has warned that Houthi Red Sea attacks and related international military responses threaten the fragile truce in Yemen.
After years of war, Yemen continues to face one of the world’s worst humanitarian crises, with over 18 million people in need of aid and more than 17 million food insecure. Approximately 4.5 million people remain displaced, and stop-start payments of public sector salaries have accelerated the collapse of essential services, including healthcare, sanitation, water, and education.
