The Houthis’ rapid advance toward one of the world’s most important shipping chokepoints is putting fresh scrutiny on the sprawling financial network that has helped transform the Iran-backed group from a Yemeni insurgency into a heavily armed regional power capable of threatening global trade.
asserted
that → put → trade
The group has seized new territory along Yemen’s Red Sea coast, including the strategic port city of Mocha, and expanded toward the Bab el-Mandeb Strait.
asserted
group → seize → Strait
The waterway connects the Red Sea to the Gulf of Aden and carries a significant share of global maritime trade and energy shipments.
asserted
waterway → connect → trade
For the Trump administration, the Houthi advance is becoming as much a financial challenge as a military one.
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advance → become → one
Washington is intensifying efforts to choke off the money sustaining Iran and its proxies, but the Houthis have built a sprawling sanctions-evasion network while controlling ports, trade routes and millions of Yemenis — raising a difficult question for Treasury: how do you cut off the cash fueling the group without cutting off food, fuel and other lifelines to civilians?
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you → intensify → civilians
The Houthis operate a financial network that extends far beyond Yemen, according to Adam Rousselle, founder of Between the Lines Research.
uncertain
that → operate → Research
"We’re dealing with a very well-capitalized group," Rousselle told Fox News Digital.
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Rousselle → deal → Digital
In a 2025 investigation for the Global Network on Extremism and Technology, Rousselle traced a financing system spanning Houthi-controlled ports, tariffs, Iranian oil, informal hawala networks, cryptocurrency exchanges and foreign facilitators across Russia, Turkey and Southeast Asia.
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Rousselle → trace → Russia
Control of ports has historically been central to Houthi revenue because Yemen depends heavily on imports.
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Yemen → depend → imports
Rousselle’s GNET report said the Houthis have imposed steep fees at ports they control and tariffs on goods brought into their territory from rival Yemeni ports.
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they → say → ports
The group’s latest territorial gains could strengthen that economic base even further.
uncertain
gains → strengthen → base
Nadwa Al-Dawsari, a Yemen expert and associate fellow at the Middle East Institute, told lawmakers in Sept. 1 testimony before the House Foreign Affairs Committee that territory is central to the Houthis’ ability to withstand outside pressure.
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territory → tell → pressure
"The most important source of that leverage is territory," Al-Dawsari testified.
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Dawsari → testify → leverage
"The Houthis have been able to consolidate their power and build increasingly sophisticated military capabilities because they control significant territory, a large population, ports, infrastructure, and resources."
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they → consolidate → territory
"That territorial base allows them to recruit, generate revenue, manufacture and store weapons, control smuggling routes, and regenerate capabilities degraded by airstrikes and sanctions," she added.
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she → allow → airstrikes
Rousselle said the Houthis’ finances should not be understood simply as Tehran handing cash to an Iranian proxy.
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Tehran → say → proxy
"It’s a bit of a misunderstanding that the Iranians just give them money," he said, describing the Houthis instead as embedded in a broader Iranian commercial ecosystem.
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he → ’ → ecosystem
"The Houthis aren't sanctions-proof; they're sanctions-adapted," Miad Maleki, senior fellow at the Foundation for Defense of Democracies, told Fox News Digital.
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Maleki → adapt → Digital
"Most of their money is made inside Yemen — customs and taxes at Hodeidah and Ras Isa, and fuel above all.
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Most → make → all
Treasury has estimated that the Houthis generate more than $2 billion a year from oil sales, while Iran provides the group with a free monthly oil shipment through Iranian-owned or affiliated companies based in Dubai.
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Iran → estimate → Dubai
Treasury has also documented Houthi revenue from taxes imposed on petroleum imports.
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Treasury → document → imports
"Sanctions can't reach domestic extraction," Maleki said.
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Maleki → reach → extraction
"What they can reach is the plumbing between Sana'a and the outside world; the exchange houses, the Dubai and Muscat correspondents, the tankers and the wallets.
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reach → reach → Sana'a
At the center of that system is Sa’id al-Jamal, whom the Treasury Department has identified as an Iran-backed Houthi financial official operating an international network that sells Iranian commodities and channels proceeds toward the group.
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that → identify → group
Treasury said in April 2025 that al-Jamal’s network had procured tens of millions of dollars in weapons, sensitive goods and commodities from Russia and identified eight digital-asset wallets used by the Houthis.
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network → say → Houthis
Blockchain analytics cited in Rousselle’s GNET research identified nearly $900 million in outflows across those addresses.
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analytics → cite → addresses
Rousselle cautioned against treating that figure as a complete picture of Houthi wealth.
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Rousselle → caution → wealth
"The system is more important than the number itself," he said, describing the network as fluid and difficult to quantify.
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he → say → network
Russia, he argued, has become a particularly significant part of the network.
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he → argue → network
"The Russians are definitely more hands-on in their support," Rousselle said.
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Rousselle → say → support
Al-Dawsari’s congressional testimony similarly highlighted the Houthis’ expanding relationships beyond Iran, saying the group is "deepening ties with other U.S. adversaries, particularly Russia and China."
She cited reports that Russia provided targeting data used to help the Houthis attack Western ships in the Red Sea and that Russian petroleum products were transferred ship-to-ship into a Houthi-controlled tanker before reaching the Houthi-controlled port of Ras Isa.
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products → highlight → Isa
Rousselle said Chinese-linked private commercial actors appear in parts of the network but distinguished that activity from proven direct Chinese government involvement.
asserted
actors → say → involvement
"The Chinese are kind of… turning a blind eye," he said.
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he → turn → eye
His GNET report described Iranian oil flowing to privately owned Chinese "teapot" refineries and examined transactions linked to Southeast Asian financial networks, while cautioning that the available evidence did not establish direct Chinese government control of Houthi financing.
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evidence → describe → financing
Al-Dawsari pointed to a broader Chinese role in Houthi supply chains.
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Dawsari → point → chains
Citing U.S. officials, she said a Chinese satellite company with ties to the Chinese military provided satellite imagery supporting Houthi attacks against U.S. warships and international shipping.
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company → cite → warships
She also cited interdiction data showing that 60% of the components and materials used in the Houthi Qasef-2K drone came from China, compared with roughly 15% from Iran.
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% → cite → Iran
That sprawling network is now testing Treasury Secretary Scott Bessent’s broader effort to isolate Tehran economically and disrupt the financial channels sustaining Iran and its proxies.
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network → sprawl → Iran
Rousselle said decentralized illicit-finance networks present a fundamental challenge.
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networks → say → challenge
"You’re dealing with a ‘you shut down one, another pops up’ kind of situation," he said.
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he → deal → situation
…and 15 more, not listed.
The Aporia
