This analytical paper issued by the Soth24 Center for News and Studies reviews the designation of the Houthis as a terrorist organization and its impact on the conflict in Yemen. The paper discusses the motivations behind the designation, the leaders included in the sanctions, the economic and military ramifications, and the role of the designation in international politics.

Ibrahim Ali* (South24)

Introduction

The US designation of the Houthis as a ‘Foreign Terrorist Organization‘ is considered a pivotal development in the years-long Yemeni conflict. This designation doesn’t merely represent a new political step in a complicated war, but deepens the complexity of the military and diplomatic scene in Yemen. It also raises questions regarding its implications on the course of the war in view of the worsening humanitarian and political challenges facing the country.

This paper analyzes the impact of the designation on the different dimensions of the conflict in Yemen with a focus on the military, diplomatic, and economic implications. Moreover, it addresses the effects of the decision on the warring parties and whether it complicates or enhances the opportunities of reaching a peaceful settlement in Yemen. It also highlights the international stances, including the European and Arab positions and the ability of these forces to impact the Yemeni situation considering the new developments.

Through this analysis, the paper seeks to present an in-depth view of the extent to which the FTO designation of the Houthis can change the course of the war in Yemen and whether this measure will contribute to pushing forward the peace process or lead to further escalation in a way that prolongs the conflict and further complicates the humanitarian crisis.

What is Behind the Designation?

In an expected move after the return of Donald Trump to the White House, Washington announced the FTO designation of the Houthis on January 22, 2025 [1].  This decision has opened the door to a series of political, military, and humanitarian implications that will cast a shadow on the Yemeni conflict and on international relationships.

In principle, this designation is considered a pivotal move in the context of the raging war in Yemen, with many implications at the regional and international levels, besides its direct impact on the deteriorating humanitarian situation in the country [2]. The US designation came in the wake of a long series of military operations carried out by the Houthis on ships in the Red Sea and on Israel as well as previous operations that targeted critical facilities in the UAE and Saudi Arabia.

Listing the reasons behind the designation, the US State Department pointed out that “the Houthis’ activities threaten the security of American civilians and personnel in the Middle East [3], the safety of our closest regional partners, and the stability of global maritime trade”. The designation was carried out pursuant to President Trump's Executive Order 14175. 

In its March 4 statement officially bringing into effect the FTO designation, the US State Department said: “Since 2023, the Houthis have launched hundreds of attacks against commercial vessels in the Red Sea and Gulf of Aden, as well as US service members defending freedom of navigation and our regional partners.” In addition, Washington emphasized that it “will not tolerate any country engaging with terrorist organizations like the Houthis in the name of practicing legitimate international business”. It stressed that the Trump administration is committed to protecting the US security interests and limiting the support delivered to terrorist groups.

To show that it means business, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), imposed sanctions on seven senior Houthi leaders [4] for having “smuggled military-grade items and weapon systems into Houthi-controlled areas of Yemen and also negotiated Houthi weapons procurements from Russia”. The OFAC also designated a Houthi operative and his company for having “recruited Yemeni civilians to fight on behalf of Russia in Ukraine and generated revenue to support the Houthis’ militant operations”.

The Sanctioned [5] Houthi Leaders 

Photo1: Infographic published by the US Embassy in Yemen includes photos of some Houthi leaders sanctioned by the United States in March 2025

Mohammad Abdulsalam

Status: He serves as the Houthi Spokesperson, making him one of the senior figures representing the group internationally. He also serves as the Houthi Chief Negotiator, including for the Houthi delegation during their talks with Saudi Arabia in 2023. 

He has played a key role in negotiating with other parties regarding political and military issues. He is considered among the senior businessmen in Yemen and wields large economic influence due to his investments in different fields, top of which is oil. He is chairman of the Al Masirah Network, a Houthi-affiliated TV channel used to deliver the group’s political and military propaganda and messages to the local and international audience [6]. 

His Role in funding the Houthis: According to the US Treasury [7], Abdulsalam “has played a key role in managing the Houthis’ internal and external financing network”. This includes facilitating “the Houthis’ efforts to secure weapons and other support from Russia“.

Cooperation with Russia and Iran: Abdulsalam has facilitated the Houthis’ efforts to secure weapons and other support from Russia. This reflects close ties with Moscow including negotiating for arms deals or technical support [8]. In addition, he has coordinated with Iran, the Houthis’ main backer, and reportedly visited Supreme Leader Ali Khamenei. This denotes the strategic cooperation between the Houthis and Iran on different political and military fields.

Place of Residence: Abdulsalam resides in Oman, allowing him to move freely and coordinate with different parties in the region, including Iran and Russia.

Mahdi Al Mashat 

Status: Chairman of the Houthi-aligned Supreme Political Council (SPC), the governing body controlled by the group in North Yemen. This entity runs the state affairs in the Houthi-held areas and is considered their de facto government.

Role in Coordinating with Foreign Governments: Al Mashat has played a significant role in coordinating with foreign governments, particularly with Russia, to advance the Houthi goals. His relationship with Russia focuses on bolstering Moscow’s support of the Houthis, whether through arms supplies or political and diplomatic support in the international arena [9]. He is considered a key figure in firming up the Houthis’ external strategy of expanding the group’s international support circles through cooperating with influential countries such as Russia. 

Involvement with the Houthis: He is a prominent figure in the Houthi leadership structure, and is seen as one of the Houthi’s main leaders commanding the group’s operations in different fields.

Abdulwali Abdoh Hasan Al Jabri

Sanctions Imposed: The US Office of Foreign Assets Control imposed sanctions on Al Jabri, a Yemeni businessman involved in recruiting Yemeni civilians to fight for Russia in Ukraine, via his company Al-Jabri General Trading and Investment Co. The OFAC describes Al Jabri as “a Houthi militant operative who served as a so-called major general in the Houthi militia”.

Recruitment: Al Jabri recruited Yemenis for ostensibly non-combat tasks in the Russian army. However, the Yemenis were deceived as they discovered later that they were required to take up arms and participate in the Ukraine war.

Recruitment in the Russian Army: The Yemeni recruits were tempted with offers of non-combat activities for around $3,000 a month. However, they later found out that they were sent to the frontlines in Ukraine. According to the OFAC, Al Jabri “facilitated the transfer of Yemeni civilians to Russian military units fighting in Ukraine in exchange for cash, generating a new source of revenue on behalf of Houthi leaders”.

Al Jabiri’s Houthi links: He is a Member of the Houthi parliament which emerged after the group took control of Sanaa. He was known for his previous affiliation with the General People's Congress. He was sacked from the Congress’ branch in Sanaa due to his close links with the Houthis.

Other Charges: He is accused of running a human smuggling operation, using his company Al-Jabri General Trading and Investment Co (Al-Jabri Co) which he established in Oman.

Russian Links: The sanctions highlight the growing ties between the Houthis and Russia, especially in terms of recruiting Yemenis and pushing them to engage in the Russia-Ukraine war.

Mohammed Ali Al Houthi 

Status: He has held important positions in the Houthis’ political apparatus. He is considered a prominent figure in the Houthi political structure, having held several leadership positions that have contributed to directing the group’s policies and implementing their strategies.

Member of the SPC: He currently serves as Member of the Supreme Political Council (SPC) which is the Houthi-controlled governing body in North Yemen. He was chairman of the SPC’s predecessor, the Supreme Revolutionary Committee which was dissolved with the formation of the SPC on July 28, 2016. The Supreme Revolutionary Committee was established on February 6, 2015, after the group took control of Sanaa and the failure to reach an agreement with President Abdu Rabu Mansour Hadi and Prime Minister Bahah. Mohammed Al Houthi played a key role in establishing the committee and laying the foundations of its work.

Cooperation with Russian and Chinese Officials: According to the US Treasury, Al Houthi has played a key role in enhancing the Houthi cooperation with Russia and China. This cooperation was in several fields, foremost of which has been military and political support, besides attempts to secure international relationships that serve the Houthi goals.

Not targeting Russian and Chinese vessels: The US Treasury’s report noted that Al Houthi was part of the group’s efforts to ensure that Houthi militants do not strike Russian or Chinese vessels transiting the Red Sea. This move aimed to avoid escalation with these two important states, particularly in a vital area which impacts global trade traffic.

Abdulmalik Alagri

Prominent Houthi Operative: He is a key Houthi figure and has played a prominent role in the group’s leadership and political structure. He enjoys considerable influence within the Houthis since he is one of the main figures who heads the group’s policies. 

Participation in the Delegations to Moscow: According to the US Treasury, Alagri has participated in the Houthi delegations to Moscow to meet with Russian leaders. This cooperation denotes a longـterm coordination between the Houthis and Russia as the group seeks to ensure political or military support from Moscow as part of the developments of the war in Yemen and the region.

Interactions with Russian and Chinese leaders: Alagri has been part of the Houthis’ efforts to consolidate ties with major nations such as Russia and China. This demonstrates the Houthi desire to enhance their relationship with the major international players in an attempt to open new channels of support and cooperation.

Membership in the Houthi ’National Negotiating Delegation‘: Alagri’s X account (formerly Twitter) states that he is a member of the Houthi ’National Negotiating Delegation‘. The Houthis assign this delegation to negotiate with other parties of the Yemeni conflict. This denotes that Alagri plays a prominent political role within the group as its representative in the international arena. This is in addition to directing the group’s negotiations that aim to arrive at political solutions to the Yemeni conflict.

Ali Muhsin Saleh Al Hadi

Runs the Sanaa Chamber of Commerce: Al-Hadi runs the Houthi-controlled Sanaa Chamber of Commerce, which is an important economic body in Sanaa and plays a key role in the local economy and in directing commercial activities that serve the Houthi interests. 

Role as a Main Financier of the group’s Weapons-procurement Activities: According to the US Treasury, Al Hadi has been central to the Houthis’ weapons-procurement activities as a financier to boost the group’s military capabilities. “Following his appointment to the SCC, Al-Hadi became a key financier of Houthi weapons procurement, using his position on the SCC and shell company to fund and obfuscate purchases of military-grade equipment on behalf of the Houthis,” the OFAC said. 

Using his status to Hide weapons-procurement Activities: Al Hadi is considered an important figure in running the Houthis’ weapons funding operations. His role wasn’t limited to financing, but also covering up the operations. This helped the Houthis’ in obtaining weapons and military equipment without being detected amid the international arms embargo imposed on Yemen.

Visiting Russia to obtain Weapons and Investments: Al Hadi has visited Russia to obtain weapons for the Houthi military and seek investments in Houthi-controlled industries to enhance the group’s economic capabilities. 

Cooperation with Countries supporting the Houthis: Al Hadi’s visit to Russia demonstrates the deepening of ties between the Houthis and Russia, as the group seeks to forge common interests with key countries that provide it with political or military support thereby helping to enhance its position in the face of regional and international pressure.

Eshaq Abdulmalek Abdullah Al Marwani

Senior Houthi member: Al Marwani is a prominent Houthi figure who holds an important position within the group’s leadership structure. He wields significant influence in decision-making and in directing the Houthis’ internal and external policies.

Aide to Mohammed Abdulsalam: Al Marwani is a close aide Houthi Spokesperson and the Head of their Negotiating Delegation Mohammed Abdulsalam. This role gives him a prominent position and he contributes to coordinating the strategies as well as the political and military activities of the group.

Participation in missions to Russia: He has participated in Houthi missions and delegations to Russia to cooperate with Russian officials. These visits demonstrate the strong and growing relationship between the Houthis and Russia, especially in the military and political arena. 

Coordinating with high-ranking Houthi Operatives: According to the US Treasury, Al Marwani’s role wasn’t limited to participating in foreign missions, but he has been an important coordinator within the group. He has networked closely with high-ranking Houthi operatives to enhance the interests of the group at the international level, including in receiving political and military support from international forces supporting the Houthis such as Russia.

Enhancing the Houthi interests Internationally: Through his coordination with the Houthi leaders, Al Marwani contributed to expanding the influence of the Houthis internationally. This is part of the group’s political strategy of seeking to strengthen their ties with supporting countries, with the aim to enhance their military and political capabilities at the regional and international arena. 

Khaled Hussein Saleh Gaber

Houthi Member: Gaber is a prominent Houthi member and plays a key role within the group’s military and financial activities. He enjoys close ties with other Houthi leaders, which makes him an important figure in coordinating between the group’s different wings.

Involvement in illegal Activities: The US Treasury's report indicates that Gaber has been involved in illegal financial activities including financial evasion and circumventing the sanctions imposed on the group as well as international financial control systems.

Cooperating with sanctioned Houthi figures: Gaber has engaged in illegal activities with previously sanctioned Houthi operatives like Sa’id Al-Jamal, in illicit arms procurement and finance activities. This has helped enhance the Houthi financial network and the continuation of their military operations.

Participation in Delegations to Russia [10]: Gaber was part of the Houthi delegations to Russia and participated in talks with Russian officials to secure political and financial support, including weapons. These visits reflect the growing Houthi-Russian relationship and confirm the military cooperation between both sides.

Coordinating illicit Arms Procurement and Finance Activities: According to the US Treasury, Gaber coordinates illicit arms procurement and finance activities with a network of other Houthi figures including Houthi financial official Sa’id Al-Jamal who has extensive ties in the illegal financial network.

Cooperating with Al-Jamal: One of the most prominent aspects of Gaber’s activities is his association with US-sanctioned Houthi financial official Sa’id Al-Jamal. They closely cooperate in organizing illicit financial operations to finance purchase of weapons and military equipment for the Houthis by circumventing the international sanctions imposed on the group. 

The new sanctions don’t include the name of the Houthi Leader Abdulmalik Al-Houthi, who was previously included in the lists of sanctions imposed on the group in 2015 for being a political leader of a group that has engaged in acts that directly or indirectly threaten the peace, security, and stability of Yemen [11].

Two Different Designations

At the end of his first Presidential term in 2021, US President Donald Trump issued an order to designate the Houthis as a ’Foreign Terrorist Organization‘ (FTO) and as a ’Specially Designated Global Terrorist‘ (SDGT) entity. Despite the apparent similarity in the classifications, there are fundamental differences in terms of the legal impact [12].  

The FTO designation is more comprehensive as it imposes strong sanctions on the group, including individuals and entities operating with it while exempting humanitarian aid from the sanctions. On the other hand, the SDGT designation provides more flexibility as it is limited to targeting the group’s local assets without expanding the sanctions to include individuals and entities operating with it on the global level.

After taking office on January 20, 2021, one of the first tasks that then President Joe Biden did was to revoke both the designations, in response to international calls to facilitate the access of humanitarian aid to Yemen. However, Biden restored the SDGT designation in January 2024 following the Houthi attacks on international shipping in the Red Sea and the eruption of the war in Gaza. This designation allowed the imposing of sanctions while keeping the humanitarian aid channels open. This also reflected the international community’s endeavour to strike a balance between imposing pressure on the Houthis and avoiding the exacerbation of the humanitarian crisis in Yemen.

In his second Presidential term, Trump lost no time in redesignating the Houthis as a ’Foreign Terrorist Organization’. The executive order issued on January 22, 2025 in this regard instructed the Director of the United States Agency for International Development (USAID) and the Secretary of State to review the UN partners and non-governmental organizations operating in Yemen.

Photo 2: A house hit by a US airstrike in Saada, Yemen, on March 16, 2025. © Naif Rahman, Reuters

Implications of the Designation on the Yemeni Conflict

The FTO designation of the Houthis and imposing sanctions on their most prominent leaders is likely to lead to a significant escalation in the Yemeni conflict. The group, which has long maintained its hardline stance against the Internationally Recognized Government and the Saudi-led Arab Coalition, may view this designation as an incentive to further harden its position, and enhance its ability to mobilize internally and intensify military operations against its opponents in Yemen and the region. As soon as the designation took effect (on March 4), the Houthis launched largeـscale military attacks on oilـrich Marib governorate [13]. These attacks are the most violent of its kind in years. It is worth mentioning that both the Houthis and the government forces backed by the Arab Coalition share control over Marib. Moreover, the Houthi Leader Al-Houthi threatened resumption of the Red Sea attacks under the pretext of the continuation of the Gaza blockade [14].  

On the other hand, the Saudi-led Coalition in Yemen will likely adopt tougher military strategies with an aim to drive the group out of certain axes if it feels reassured by the US position. This increases the complexity of the military scenario. Some indications denote that the coastal city of Hodeidah may be the next target of the government forces [15]. Several observers believe that the military option may be one of the most likely scenarios in the coming months, given the current situation and rapid developments. This option could take more than one form and may vary depending on the adopted military strategy and desired goals.

One possible form could be of triggering large-scale confrontations in the contact areas, which have been witnessing continuing friction between the disputing parties. Such confrontations can lead to rapid escalation of the situation, increasing the intensity of the conflict, making it difficult to reach a peaceful solution. The other form is targeting the points of weakness in the areas in which the targeted group is based. This option aims to weaken the Houthi capabilities gradually by targeting vital infrastructure or the strategic locations that constitute their points of strength. Nonetheless, this choice remains a complicated one and requires accurate calculations related to the external interventions and military funding.

Big Operational Transformation

As part of the military escalation, the US air force launched, on March 15 2025, aggressive raids which targeted the capital Sanaa and a number of Yemeni governorates [16]. The attack, which is considered more violent than any previous one, came after a series of US political statements that led to the FTO designation of the Houthis. This designation has played a prominent role in escalating tensions in the region as it reflects a clear transformation in the US policy toward the Houthis and their stance toward the Yemeni crisis. This escalation is seen as a strong deterrence message to the Houthis -- that the US is serious in confronting their activities which destabilize the region. Moreover, the latest US moves, including the attacks, come within the context of implementing a harsher policy toward the Houthis after their FTO designation. Washington described this designation as part of fighting “the regional threats” posed by the Houthis on the security of the region.

The strikes came after Trump ordered the US military to launch “decisive and powerful Military action against the Houthi terrorists in Yemen” [17]. In other statements, Trump vowed to “use overwhelming lethal force until we have achieved our objective” to defeat the group [18]. 

The Israeli Role

In the context of military implications, Israel may head toward taking offensive military measures against the Houthis after its FTO designation. This move comes at a sensitive time, as tensions in the region escalate, and many security experts feel that the threat posed by the Houthi group now extends to Israeli interests in the region and into Israeli territory.

Some analysts believe that Israel may start launching pre-emptive strikes [19] against Houthi strategic locations in Yemen, similar to what it did in other areas in the Middle East. Israel has previously bombed civil facilities in Hodeida and Sanaa in the past months [29]. 

Potential military action against the Houthis may stem from Israeli concerns about the strengthening ties between Iran and the Houthis. Israel views the Houthis as a direct threat to its interests in the Red Sea. Since Israel resumed its aggression on Gaza on March 18, 2025, the Houthis have launched several ballistic missiles at Israel [21][22].   

On March 25 (Tuesday), the Houthis said they had fired a ballistic missile towards Israel and would expand their range of targets in the coming days in retaliation for Israel breaking the ceasefire in Gaza.

On March 27 (Thursday), the Iran-backed Houthis targeted Ben Gurion airport with a ballistic missile. “The Yemeni armed forces carried out a qualitative military operation targeting Ben Gurion airport in the occupied Jaffa region with a Palestine-2 hypersonic ballistic missile,” Houthi spokesman Yahya Saree said.

However, the Israeli military said it had intercepted two missiles launched from Yemen "prior to crossing into Israeli territory" after it activated air raid sirens across multiple areas, including Jerusalem.

These attacks are likely to accelerate the decision within Israel to take more decisive offensive action against the Houthis. Some political circles in Israel believe that the FTO redesignation of the Houthis may strengthen the justification for making a military move against the group as part of self-defense policy and protecting Israeli interests [23]. This may include coordinating with some antiـHouthi Yemeni parties or launching operations in the Red Sea to secure maritime navigation and guarantee the safety of Israeli commercial shipments.

Finally, the field remains open to further escalation, as Israeli actions against the Houthis could provoke reactions from other parties in the region, particularly Iran, the Houthis’ largest backer. The coming days will certainly reveal how Israel will deal with this new challenge in the context of developments in the Middle East conflict.

Economic and Humanitarian Impact on the Houthis

The FTO designation of the Houthis has deep implications at the humanitarian and economic levels, and puts huge challenges before the group and increases the humanitarian suffering in Yemen [24]. The terrorism designation will likely lead to slapping of more economic sanctions on the group, including freezing of assets, banning commercial transactions, restrictions on international financial transactions. These measures may largely contribute to weakening the local economy in the Houthi-held areas. 

The economic sanctions will directly impact the daily life of people in the areas controlled by the group [25]. Due to restrictions on international trade and the movement of humanitarian aid, civilians are suffering from severe shortages of essential goods such as food, medicine, and fuel. In addition, the sanctions could exacerbate the existing economic crisis, with the commercial sector facing additional challenges in transporting and distributing essential goods.

For the civilians in the Houthi-held areas, their lives have been marked by continuous struggle amid very difficult economic and humanitarian conditions even before the imposing of further sanctions [26]. The situation has witnessed an ongoing deterioration in livelihood standards as the unemployment rates have risen and the job opportunities slumped [27]. Furthermore, economic restrictions negatively impact the people’s ability to provide for their daily needs and increase their sufferings.

In a move aimed to avoid the impact of the US sanctions on the Houthis, on March 17 eight Yemeni banks in areas controlled by the group decided to move their headquarters to the capital Aden [28]. These include Tadhamon Bank, Al-Kuraimi Islamic Microfinance Bank, Yemen Bahrain Bank, Yemen Islamic Bank for Finance and Investment, Saba Islamic Bank, Yemen Gulf Bank, Yemen Commercial Bank, and Amal Bank for Microfinance.

Although the designation of the Houthis can impose new challenges on the banking sector in Yemen, the Central Bank of Yemen in Aden early sought to move the headquarters of banks from Sanaa to Aden to weaken the Houthis’ economic capabilities and limit their use of financial and economic resources to build their military abilities. As part of the US’ escalating pressure on the Houthis by cutting off its funding sources, on March 13 Washington announced a ban on the import of oil products through the militia-controlled Port of Hodeidah, effective April 2 [29]. This decision may further exacerbate the humanitarian crisis in the Houthiـheld areas. The ban will likely lead to a sharp fuel shortage, disrupting transportation, and electricity and water services. This would be in addition to the soaring prices of fuel in the black market which will increase the suffering of poor families already buffeted by the economic hardships. Although the Houthis seek to secure alternative solutions such as the increase of oil storage facilities, these measures may not be enough to overcome the impact of the restrictions. This further complicates the situation in the areas controlled by the Houthis.

The Role of the Designation on International Policy

The US designation of the group as a Foreign Terrorist Organization, coupled with some countries and international organizations condemning the Houthi attacks on shipping, is one of the major factors influencing international policy regarding the Yemeni conflict. This designation poses significant challenges on the international community's efforts to open the door to peaceful negotiations between the conflicting parties in Yemen [30]. 

One of the most notable challenges resulting from the FTO designation is its direct impact on any efforts to conduct amicable negotiations on the crisis in Yemen. The US has imposed strict conditions for any attempt to negotiate with the Houthis. Washington and some countries are expected to focus on making the Houthis pledge to abandon their military and terrorist activities. Such a move is difficult for the Houthis given their current policies and intransigence on military issues. In the face of this, the prospects for a peaceful solution to Yemen will diminish while the military escalation will continue.

On the other hand, the regional relationships are clearly impacted by the designation of the Houthis as terrorists. While Western countries view the Houthis as a threat to regional and global security, Iran may find itself in a situation that requires greater support from the group. This mutual supporting stance will contribute to deepening the gap between the big players and their regional allies on the one hand and Iran on the other. This is because the Iranian support of the Houthis is seen as a challenge to the Western influence in the region which further complicates the regional and international relationships.

The designation also helps in reshaping the policies of the major countries toward the Middle East in general and Yemen in particular. Countries that adhere to strict anti-terrorism stances may find themselves forced to deal with the Houthis more cautiously. This could lead them to increase pressure on Iran or even impose additional sanctions.

The International Pressures on the Houthis

The FTO designation will enhance the international pressure on the Houthis to sit at the negotiation table and accept the conditions to stop hostilities. The pressures facing the Houthis because of this designation may push them to reconsider their stance toward a peaceful settlement, which would open the door to new prospects of the peace process in Yemen.

However, achieving this result isn’t easy, and would require drastic changes in the Houthis’ view of the balance of power. They still harbour the delusion that their foes are on the verge of collapse and surrender and that they can confront their opponents and the US with steadfastness and resistance citing the Taliban model, which forced Washington to negotiate after two decades of confrontation [31]. Undoubtedly, changing this false perception would require the group to be faced with tangible losses as well as ongoing field and political pressure accompanied with the FTO designation. By showing strong will and intensifying pressure, the international community can push the Houthis to reconsider their calculations and sit at the negotiation table in good faith.

Meanwhile, the international community faces big challenges in striking a balance between pressuring the Houthis toward negotiation and maintaining the flow of humanitarian aid to the areas affected by the conflict. The negative impact of this policy will certainly affect efforts to reach a political solution, as the complexity of the humanitarian situation may lead to dire consequences for the stability of the region as a whole. This requires the international community to coordinate better to find solutions that balance these priorities. In 2025, an estimated 19.5 million people across Yemen are in need of humanitarian assistance and protection services – 1.3 million people more than last year.

The Legal Impact of the Designation 

The legal implications of the designation may deepen the isolation of the Houthis. The US laws criminalize any financial or material transactions with the designated organization, including freezing assets and imposing sanctions on individuals and entities that provide support to the Houthis [32]. This includes individuals affiliated with the Houthis or entities that provide financial support to them. This designation also gives the United States broader authority to combat Houthi activities, including the use of intelligence and military tools. The designation could lead to prosecution of individuals and entities involved in supporting the Houthis, whether inside the United States and in other countries. In addition, Houthi members are banned from traveling to the US or countries with diplomatic ties with the US, which prevents them from traveling across borders, visiting other countries, or participating in international activities.

More Comprehensive Operation

Along with intensifying airstrikes, the FTO designation of the Houthis by the US is a new turn in the nature of the confrontation between both parties. While the US operations were confined to limited strikes aiming to neutralize the Houthi offensive capabilities, the redesignation may open the door to a more comprehensive strategy. This strategy may include the possibility of intensifying US military operations, including launching deeper airstrikes targeting strategic sites and Houthi leaders, similar to the operations against the Al-Qaeda [33]. We can also see a surge in the intelligence operations aiming to monitor and disrupt the Houthi military activities like what happened with Al Qaeda in the Arabian Peninsula (AQAP).

Additionally, the designation gives the US broader powers to deal with the Houthis, including freezing assets and imposing strict economic sanctions. This designation may push the US administration to adopt a stricter strategy aiming to weaken the Houthi military capabilities and also undermine their influence in the region.

Summary

The FTO designation of the Houthis and the sanctions against their leaders undoubtedly constitute an important change in the course of the Yemeni conflict, reflecting its political and military complexity regionally and internationally. The designation may contribute to enhancing pressure on the Houthis. However, it is unlikely to lead to immediate solutions to the crisis.

The balance between military pressure and the humanitarian and diplomatic solutions will be the decisive factor impacting the future of Yemen and the region. The designation could also enhance international counter-terrorism cooperation, and help in coordinating between countries to combat terrorist groups, including sharing intelligence information or conducting joint operations.