The US treasury department in a statement said the two individuals and five entities sanctioned on Tuesday were among the most significant importers of petroleum products and money launderers that benefit the Houthis.

“The Houthis collaborate with opportunistic businessmen to reap enormous profits from the importation of petroleum products and to enable the group’s access to the international financial system,” said deputy secretary of the treasury Michael Faulkender.

“These networks of shady businesses underpin the Houthis’ terrorist machine, and Treasury will use all tools at its disposal to disrupt these schemes.”

Among those targeted on Tuesday was Muhammad Al-Sunaydar, who the Treasury said manages a network of petroleum companies between Yemen and the UAE and was one of the most prominent petroleum importers in Yemen.

Three companies in his network were also designated, with the Treasury saying they coordinated the delivery of approximately US$12 million dollars’ worth of Iranian petroleum products with a US-designated company to the Houthis.

Since Israel’s war in Gaza against the Palestinian rebel group Hamas began in October 2023, the Iran-aligned Houthis have been attacking vessels in the Red Sea in what they say are acts of solidarity with the Palestinians.

In January, Trump re-designated the Houthi movement as a foreign terrorist organisation, aiming to impose harsher economic penalties in response to its attacks on commercial shipping in the Red Sea and against US warships defending the critical maritime area.

In May, the US announced a surprise deal with the Houthis where it agreed to stop a bombing campaign against them in return for an end to shipping attacks, though the Houthis said the deal did not include sparing Israel.

The Israeli military attacked Houthi targets in Yemen’s Hodeidah port on Monday in its latest assault on the rebels, who have been striking ships bound for Israel and launching missiles against it.