US imposes new sanctions against Iran's terror proxy groups' trade network

The US Treasury Department issued sanctions targeting Houthi and Hezbollah trade networks on Thursday as Washington seeks to increase pressure on Tehran and its terror groups.

The new sanctions targeted companies, individuals and vessels involved in the shipment of Iranian commodities, including oil and liquefied petroleum gas (LPG) to Yemen and the UAE on behalf of a Houthi financial official's network.

“Today’s action underscores our continued commitment to disrupting Iran’s primary source of funding to its regional terrorist proxies like Lebanese Hezbollah and the Houthis,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith in a statement Thursday.

“Our message is clear: those who seek to finance these groups’ destabilizing activities will be held to account.”

In addition to targeting the network of Sa’id al-Jamal, OFAC is also designating Hong Kong-based Kai Heng Long Global Energy Limited for its role in "shipping Iranian LPG worth tens of millions of dollars" for Iran-backed Hezbollah.

The sanctioned entities include Palau-flagged LPG tankers LPG OM and RAHA GAS, owned by Marshall Islands-registered companies KDS Shipping Limited and Arafat Shipping Company, respectively, which the Treasury said have been linked to illicit shipments for the Sa’id al-Jamal network.

The RAHA GAS, captained by Indian national Arif Ibrahim Khot, falsely labeled shipments as originating from the UAE and delivered them to Yemen.

UAE-based ONX Trading FZE facilitated payments for the operations. The DIVINE POWER, owned by DP Shipping Limited, also shipped fuel oil for al-Jamal’s network, including a transfer with the US-sanctioned MEHLE.

These entities, along with Malaysia-based Transmarine Navigation and UAE-based K F D General Trading, are now sanctioned by the US for supporting the al-Jamal network. Additionally, Hong Kong-based Kai Heng Long Global Energy Limited who managed multiple LPG tankers linked to Iranian LPG shipments was sanctioned on Thursday.

The OFAC designated Sa’id al-Jamal in 2021 for having supported the Houthis and its illegal trading network in order to fund Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF), which was designated by the US in 2007 for its support of terror groups.

The Houthis were re-designated by the US in January after three months of a blockade by the terror group saw US shipping targeted with a series of attacks. The blockade began in November after orders from Iran’s Supreme Leader, Ali Khamenei, to blockade the trade route, targeting Israeli-linked ships in support of the Iran-backed Hamas war in Gaza.

In retaliation to the Houthi blockade, the US and UK have launched direct attacks on Houthi infrastructure in Yemen with the US leading a more than 20-nation coalition to battle Iran’s proxy armed with state-of-the-art missiles and drones. In February, the action led the Houthis to declare both the US and UK targets in its blockade which began against Israel.