The Houthis’ four-year honeymoon is over

The US State Department last week reinstated the Foreign Terrorist Organization designation for Yemen’s Iran-backed Houthi group, fulfilling an order announced by President Donald Trump shortly after he took office. This action underscores Washington’s commitment to countering Iran’s proxies and addressing the growing threat posed by the Houthis, whose violent actions have destabilized Yemen and the broader Middle East.

As part of this move, the State Department’s Rewards for Justice program announced it would pay up to $15 million for information leading to the disruption of Houthi financing, signaling a focused effort to cut off the financial resources that sustain the group’s violent campaign.

This decision is a significant step in the ongoing efforts to combat terrorism and limit Iran’s influence in the region.

Secretary of State Marco Rubio emphasized that the Houthis have repeatedly targeted commercial vessels in the Red Sea and Gulf of Aden, in addition to posing a direct threat to US service members. He underscored that the US will not tolerate any nation engaging with terrorist organizations like the Houthis, especially under the pretense of legitimate international trade. This stance reaffirms his country’s commitment to holding such groups accountable and protecting global maritime security.

The Houthis, who seized control of Yemen's capital, Sanaa, in 2014, have expanded their reach through a combination of military aggression and support from Iran’s Quds Force, which has enabled them to carry out sustained attacks, not only against Yemen’s legitimate government but also against civilian infrastructure across the region.

This is not the first time the terrorist group has faced significant actions to curb its influence. In early 2021, the first Trump administration made the same pivotal decision, marking a critical step in isolating the group from global financial networks. It severely restricted the Houthis’ ability to access vital funds, resources and weapons, all of which were essential to sustaining their violent campaign.

However, in an unexpected shift, the Biden administration removed the pro-Iran group’s designation shortly after taking office in 2021, claiming that the designation was hindering the delivery of humanitarian aid to Yemen. This allowed the Houthis to operate with greater freedom and enabled them to continue their violent activities with no solid consequences.

This decision is a significant step in the ongoing efforts to combat terrorism and limit Iran’s influence in the region

Dalia Al-Aqidi

By reinstating the designation, the Trump administration has sought to correct this mistake and reassert its commitment to combating terrorism in the Middle East. The restoration of the designation sends a clear message that Washington will not tolerate the Houthis’ acts of terror and that they will be held accountable for their actions. In addition, it will have far-reaching consequences for their supporters, particularly key backer Iran.

The reinstatement will significantly disrupt the Houthis’ access to international financial systems. The American government will now have the authority to freeze any assets tied to the Houthis within US jurisdiction and block any financial transactions that could benefit the group. The terrorist group will be cut off from much-needed funds, preventing it from acquiring weapons, ammunition and other resources that support its ongoing terrorist activities.

This financial pressure may also limit the Houthis’ ability to recruit new members and sustain their violent campaign, particularly if it cuts off the supply lines from Iran. By targeting the group’s financial networks, the US aims to undermine its capacity to carry out attacks and weaken its operational capabilities.

The American decision will also have military and strategic consequences. It gives the US and its allies a stronger legal basis to take military action against the Houthis. It allows the US to target Houthi military positions and leaders, as well as their weapons supply chains. It also justifies increasing military operations in the Red Sea and Gulf of Aden, areas where the Houthis have targeted commercial shipping vessels. By protecting these crucial maritime routes, Washington and its allies can help safeguard global trade. Meanwhile, it also provides further legal grounds for rapidly responding to hostile actions against US Navy warships in the area.

Even though this action may complicate the delivery of humanitarian aid to Yemen, the US has stated that it will implement measures to ensure aid reaches those in need without benefiting the Houthis. This includes working with international organizations and ensuring that aid distribution is closely monitored. The goal is to prevent the terrorists from diverting humanitarian resources to fund their brutal activities, while ensuring that the suffering of the Yemeni people does not go unaddressed. Alleviating the humanitarian crisis without enabling the Houthis to exploit the situation for their own gain requires a delicate balance that needs to be carefully navigated.

The redesignation carries significant regional consequences, particularly for Washington’s allies like Saudi Arabia, the UAE and Israel, who have been targeted by the group. It reinforces the White House’s support for its allies and holds Iran’s proxies accountable. However, this action is not without its risks — it may escalate tensions with Iran, potentially leading to increased support for the Houthis and other militant groups, which could complicate efforts to de-escalate broader Middle East tensions and strain the US’ diplomatic relations with both Iran and its allies.

The Houthis’ actions extend far beyond the Arabian Peninsula, threatening not only regional stability but also global security. As part of Iran’s broader strategy to weaken US influence and sow chaos across the Middle East, this decision by the Trump administration was both essential and decisive. This bold move has strengthened the international community’s ability to hold the Houthis accountable, cutting off their support and limiting their capacity for further violence. It also catalyzes greater cooperation among nations committed to eradicating terrorism and safeguarding global peace. This decision was not just a strategic victory in countering terrorism but a necessary step in securing a more stable and secure world.

• Dalia Al-Aqidi is executive director at the American Center for Counter Extremism.