The U.S. State Department on Tuesday implemented the designation of Yemen’s Iran-aligned Houthi movement as a foreign terrorist organization (FTO), following President Donald Trump’s directive earlier this year.
Secretary of State Marco Rubio said the move was necessary as Houthi attacks threaten American personnel, regional security, and global maritime trade.
“The United States will not tolerate any country engaging with terrorist organizations like the Houthis in the name of practicing legitimate international business,” Rubio stated.
The designation raises fears of worsening Yemen’s humanitarian crisis, as aid groups warn that importers may avoid the country due to U.S. sanctions.
U.N. spokesperson Stephane Dujarric cautioned that limiting access to essential supplies could have “devastating humanitarian consequences” for 19 million Yemenis in need.
BIMCO security official Jakob Larsen warned the move could escalate regional tensions, affecting shipping routes in the Red Sea.
The Houthis, who control most of Yemen, have launched over 100 attacks since November 2023 on commercial ships and U.S. naval forces, claiming to act in solidarity with Palestinians in Gaza.
The group has sunk two vessels, seized another, and killed at least four seafarers.
They have also targeted Israel with missile and drone strikes.
In January, Houthi leaders warned they would resume attacks if an Israel-Hamas ceasefire failed.
The FTO designation marks a sharp policy shift. While Trump initially labeled the Houthis a terrorist group in 2021, former President Joe Biden reversed the decision, citing humanitarian concerns.
In 2023, Biden designated the Houthis as "Specially Designated Global Terrorists" (SDGT) but stopped short of the full FTO classification.
Now, under Trump’s directive, the harsher designation has been reinstated, imposing tougher economic penalties on the group.
With shipping disruptions ongoing and uncertainty over the Gaza ceasefire, experts warn the security situation in the Red Sea remains volatile.
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