13-1-2024 (WASHINGTON) In a targeted move to disrupt financial networks supporting Iranian-backed Houthi rebels in Yemen, the United States Treasury Department has imposed sanctions on two companies, one based in Hong Kong and the other in the United Arab Emirates. This strategic action follows recent coordinated military strikes by U.S. and U.K. forces aimed at degrading the Houthi rebels’ capacity to launch assaults on international shipping routes in the Red Sea and the Gulf of Aden.
The sanctioned entities are identified as Cielo Maritime, headquartered in Hong Kong, and Global Tech Marine Services, based in the UAE. Both companies are alleged to have played pivotal roles in transporting Iranian goods for a network associated with Sa’id al-Jamal, a financier already subject to U.S. sanctions.
Cielo Maritime Limited, a Hong Kong-based private company, was officially incorporated on May 28, 2023, with current operations and activity status. The registered office address, as of the latest update on December 16, 2023, is ROOM 06, 17/F., WELLBORNE COMMERCIAL, 8 JAVA ROAD, NORTH POINT, HONG KONG.
The Treasury Department highlighted the significant role these entities played in generating revenue that supports Houthi insurgent activities and aggressive actions against international maritime trade. Brian Nelson, the Under Secretary for Terrorism and Financial Intelligence, emphasized the commitment to disrupt the destabilizing activities of the Houthis and their threats to global commerce.
As part of the punitive measures, the Treasury Department has also identified four vessels as “blocked property,” indicating the companies’ interests in these ships. Some of these vessels are reported to have engaged in deceptive practices, using falsified documentation to conceal the Iranian origin of their cargo.
This move aligns with a series of similar measures undertaken by the U.S. in December of the preceding year, forming a part of the ongoing strategy to exert financial pressure on the Houthi rebels.
In response, the Houthi’s Supreme Political Council has issued threats of retaliation. The United Nations Security Council is expected to convene an emergency session to address the escalating tensions in the region.
Controlling substantial portions of Yemen over the past decade, the Houthi rebels have intensified their attacks on critical shipping lanes near the entrance of the Red Sea, which serves as a passage for around 15% of global maritime trade between European and Asian markets.
The disruptive impact of these attacks has forced shipping companies to reroute vessels around Africa, resulting in longer and costlier detours. This has raised concerns about potential spikes in global inflation and added strain to already challenged supply chains.
