The Impact of Houthis' Designation as Terrorists on Yemen

TEMPO.CO, Jakarta - The U.S. State Department on Tuesday, March 4, 2025, announced that they have implemented the designation of Yemen's Iran-aligned Houthi movement as a "foreign terrorist organization" following the call by President Donald Trump earlier this year, Reuters reported.

Secretary of State Marco Rubio said Houthi activities threaten the security of civilians and U.S. personnel in the Middle East, the security of U.S. closest regional partners, and global maritime trade stability. "The United States will not tolerate any country engaging with terrorist organizations like the Houthis in the name of practicing legitimate international business," he said.

In January, Trump re-designated the Houthi movement as a foreign terrorist organization. The designation aimed to impose stricter economic penalties in response to their attacks on commercial shipping in the Red Sea and U.S. warships defending critical maritime areas.

Houthi, which controls most of Yemen, has carried out over 100 such attacks since November 2023, stating that they stand in solidarity with the Palestinians against Israel's war on Hamas in Gaza. They have sunk two vessels, seized another, and mistreated at least four sailors. They also targeted Israel with missile and drone attacks.

This is the second time that Houthis have been designated as a terrorist organization by the Trump administration. At the beginning of his term in 2021, former President Joe Biden revoked Trump's terrorist designation to address humanitarian issues in Yemen.

What Urges the Designation of Terrorist Organizations?

There will be very serious consequences for designating the Houthis as a terrorist organization not only for the group itself but also for those associated with it. Anyone involved or in cooperation with Houthis, whose territory is home to most of the Yemeni population, will be at risk of prosecution by the United States, The Arab Weekly reported.

According to Mohammed Al-Basha from Basha Report, a U.S.-based risk adviser, the FTO authorities even cover indirect forms of contact or meetings with the group, which could be punishable if deemed supportive. "This expanded and more punitive framework not only cuts off financial lifelines but also significantly undermines the group’s operational capabilities, international mobility and legitimacy," Al-Basha said.

According to Elisabeth Kendall, director at Girton College, University of Cambridge, Trump intends to apply a zero-tolerance policy towards Houthi aggression, regardless of its potential impact on civilians. Will this designation pressure Houthi and help stop their attacks? "This is less clear," said Kendall.

What Are the Impacts on the People of Yemen?

Abdulghani al-Iryani, a researcher at the Sana'a Center for Strategic Studies, an independent think-tank, said the designation of this terrorist organization will cause great difficulty in providing humanitarian aid. Sanctions, Iryani said, are not only directed at areas controlled by Houthis, but affect other areas under government control.

Iryani said banks in Sana'a will go bankrupt, harming depositors across the country, and Yemen's wheat suppliers are likely to suspend their contracts, as they did when the Houthis were first listed as an FTO. "Maybe in the long term, this will break the backbone of the Houthis, but I think famine will set in well before the Houthis’ backbone is broken," Iryani said.

U.N. spokesperson Stephane Dujarric stated that such appointments should be accompanied by appropriate protection and guarantees, both for humanitarian assistance and the ability of civilians to access goods and commercial services centrally.

If this is not feasible, this designation will have a very negative humanitarian impact. Dujarric said, about 19 million Yemenis need life-saving assistance.

Jakob Larsen, head of security and security officer at the BIMCO shipping association, warned that the designation "has the potential to deteriorate the security situation." He said that traffic patterns "are largely unchanged." Given the uncertain future of the Gaza ceasefire and the potential for U.S. or Israeli strikes on Houthis, "the security threat is increasing," Larsen said.

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