Politics

New US sanctions on the Houthis while Yemen’s economy is on its last legs

Last December 21, the United States announced that it had struck targets in the capital of Yemen, under the control of the Houthi rebels, a few hours after a missile launched by the same rebels, supported by Iran, caused 16 injuries in the city of Tel Aviv , in the heart of Israel and it was the second attack of this type during the week. Among the US forces’ targets “was a Houthi missile storage center and command and control facility,” US Central Command (CENTCOM) said in a statement. A few weeks after the inauguration of the president-elect Donald Trump, which has already announced its program of very harsh sanctions against Iran called “Maximum Pressure 2.0” last December 19 the United States imposed sanctions against entities linked to Iran and its Houthi allies in Yemen. «Today, the United States is taking steps to stem the flow of revenue that the Iranian regime uses to support terrorism abroad, as well as oppress its own people. The Department of State is imposing sanctions on four entities engaged in Iranian oil trading and is identifying six vessels as blocked property,” the Treasury Department statement read.

US sanctions

The sanctions target individuals, companies and ships involved in trading Iranian oil and petrochemicals, a key source of revenue for Tehran’s leadership. According to the US Treasury Department, these funds are used to support Iran’s nuclear program, develop ballistic missiles and finance proxy groups such as Hezbollah, Hamas and the Houthis. Additionally, the Treasury designated Iran’s Ghezel Hesar prison “for serious human rights violations.” The designation, made under Section 106 of the Countering America’s Adversaries Through Sanctions Act (CAATSA), identifies the prison “as responsible for cruel, inhuman, and degrading treatment or punishment of individuals in Iran exercising their right to freedom of expression , recognized internationally”. The sanctioned vessels include the Djibouti-flagged oil tanker MS ENOLA, owned by Journey Investment Company; the MS ANGIA, flying the flag of San Marino; and the MS MELENIA, flying the flag of Panama. These two companies are managed and operated by Rose Shipping Limited, registered in Liberia and Greece, writes Reuters. In addition to targeting the ships, the Treasury imposed sanctions on 12 individuals involved in Houthi procurement and financing activities. Among them is Hashem Ismail Ali Ahmad al-Madani, head of the Houthi-aligned central bank in Sanaa. These individuals are accused of being involved in arms trafficking, money laundering and the illicit shipment of Iranian oil to the Houthis. The sanctions include the freezing of all assets and interests in the United States of the designated parties. Additionally, U.S. persons and entities that engage in dealings with these entities risk sanctions or legal measures, including many. Despite this, Iran continues to claim, deceptively, that its nuclear program is intended exclusively for peaceful purposes.

A very poor country

Returning to Yemen the internal conflict has brought the already shaky Yemeni economy to its knees, so much so that according to the World Bank the conflict has led to a dramatic 54% contraction in Yemen’s real GDP per capita since 2015, plunging the majority of the population into poverty. Around half of the population, or 17.4 million people, suffer from food insecurity. Economic fragmentation and the Houthi-imposed blockade of oil exports have further strained the economy, reducing fiscal space and hindering growth. Malnutrition rates in Yemen are among the highest in the world. Around 2.7 million children are severely malnourished, with nearly 600,000 suffering from severe acute malnutrition. The healthcare system is on the verge of collapse, unable to cope with the high demand for medical services due to the ongoing conflict and economic difficulties. The conflict has had a serious impact on human capital in Yemen. Youth mortality rates have increased, life expectancy has decreased and educational attainment is low. A child starting school at four can expect to complete just 4.2 adjusted years of learning by age 18, which places Yemen among the lowest in the world. This depletion of human capital will have long-term negative effects on the country’s recovery and development.

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