How the Houthis Built a Multibillion-Dollar Network Despite US Sanctions

A new report from Fox News highlights how the Houthi group in Yemen has built a sprawling financial network, transforming from an insurgency into a heavily armed regional power. According to analysis by Adam Rousselle, founder of Between the Lines (BTL) Research, this network encompasses port control, tariff collection, Iranian oil trade, informal hawala networks, and cryptocurrency exchanges operating across countries including Russia, Turkey, and Southeast Asia. Experts suggest the Houthis are not merely recipients of cash from Tehran but are embedded in a broader commercial ecosystem.

Nadwa Al-Dawsari, a Yemen expert, testified before the U.S. Congress that territorial control and access to critical infrastructure are the primary sources of Houthi leverage and their ability to withstand external pressure. According to U.S. Treasury estimates, the Houthis generate over $2 billion annually from oil sales and taxes on fuel imports. It is also reported that Iran provides the group with free monthly oil shipments via affiliated companies based in Dubai.

The report also points to the roles of Russia and China. It is alleged that Russia has assisted the group by providing targeting data and facilitating ship-to-ship transfers of petroleum products to Houthi-controlled tankers. Regarding China, while there is no evidence of direct government involvement, reports indicate that a significant portion of components for Houthi drones originates in China, and private Chinese commercial actors appear within the group's supply chains.

U.S. efforts to choke off these financial channels face a significant dilemma: how to disrupt Houthi revenue without exacerbating the humanitarian crisis for Yemeni civilians who rely on imports through Houthi-controlled ports for food and fuel. Miad Maleki of the Foundation for Defense of Democracies suggests that Washington should focus on the points where Houthi finances intersect with the formal financial system and foreign correspondents to effectively change the group's behavior.