Shortly after taking office, US President Donald Trump issued an executive order re-designating the Houthis in Yemen as a Foreign Terrorist Organization (FTO), citing their attacks on US personnel and commercial vessels. Since last year, the Houthis have escalated their attacks in the Red Sea, with the group linking this spike to the Gaza War.
Efforts to mediate between the Houthis and the Yemeni legitimate government are expected to come to a halt following the designation of the Houthis as a terrorist organization. This classification will complicate diplomatic engagement as it aims to delegitimize the Houthis and increase pressure through sanctions. Moreover, the decision to blacklist the Houthis comes in the wake of their ongoing pattern of detaining and kidnapping individuals, including United Nations (UN) staff and aid workers. This has led the UN to suspend all travel to Houthi-controlled areas in Yemen. More than 70 officials working with international and regional agencies have reportedly been detained by the Houthis. Humanitarian operations have been severely affected due to the risks, with many international organizations relocating their headquarters from Sana’a to Aden due to rising security concerns, including Houthi detentions and kidnappings. UN officials have also clarified that the detentions were carried out by the Houthis citing links to US and Israel despite the officials having no connection to the US embassy or government. The Houthis have exploited the Gaza war, leveraging it to increase influence and distract from domestic pressures and failures. Multiple reports have revealed that their rule is marred by corruption and mismanagement. This situation has further disrupted the provision of aid to Yemen, exacerbating the country’s acute humanitarian crisis.
Former US President Joe Biden had lifted the FTO status on the Houthis to address Yemen’s humanitarian crisis. However, in January 2024, the Biden administration listed the Houthis as Specially Designated Global Terrorists (SDGT) after Houthi attacks on global shipping. The redesignation of the Houthis as a terrorist organization by the Trump administration will result in the freezing of their funds and assets while prohibiting any form of support for them. Entities and countries engaging with the Houthis will also face sanctions. This move imposes stricter measures, criminalizing even indirect support or interactions with the group. In contrast, the previous designation as SDGT by the Biden administration was more limited, focusing primarily on financial isolation and sanctions without broadly criminalizing engagement with the group.
Trump has consistently criticized Biden’s approach to the Middle East as weak, particularly regarding the Houthis and Iran, arguing that his administration’s hesitancy allowed both to expand their influence and target US assets. Such a narrative coupled with bipartisan pressure for a more robust US response to address the Iranian threat have enabled Trump to swiftly execute his agenda. Trump’s calls for “peace through strength” reflect a belief that security and stability in the region can only be achieved through a more assertive military approach, especially as Iran and its proxies are now at their weakest point. By recalibrating US policy, the aim is to assert US dominance in the region and send a clear message to those supporting the Houthis and Iran that their actions will not go unchecked. This policy shift reflects Trump’s broader “America First” strategy, combining assertive military action with a focus on deal-making and avoiding prolonged foreign entanglements.
The Trump administration will also likely leverage the converging interests and shared concerns with its regional allies and partners like Saudi Arabia and the UAE to address lingering regional security challenges. This could involve an assertive and coordinated military strategy with the support of regional allies to reestablish deterrence and ensure stability that remains critical for global trade. Yemen’s Vice President Aidarous al-Zubaidi said airstrikes are not enough to deter Houthi escalations and need to be combined with ground operations. The Yemeni government has repeatedly called for neutralizing the military capabilities of the Houthis citing risks to regional stability as well as for domestic prosperity, especially as the Houthis continue to control Sana’a. The Trump administration’s strategy will also affect the Chinese and Iranian entities that facilitate the supply of weapons to the Houthis, exposing them to sanctions and other punitive measures.
Trump’s decision is welcomed by the Yemeni legitimate government and will be supported by regional countries as well, especially as the Houthi attacks have caused disruptions in global trade and have increased maritime risks in strategic chokepoints like the Bab al-Mandab Strait. Shipping costs through the Red Sea have significantly increased due to the spike in war risk insurance premiums. Many insurers are now hesitant to provide coverage for ships in the region, leaving vessels considered high-risk struggling to find protection. This has led some companies to avoid the Red Sea altogether and shift routes to bypass the Suez Canal despite longer transit times. As per reports, disruptions in the Red Sea have caused a 60% drop in Suez Canal revenue costing Egypt over $7 billion last year. The economic impact of these disruptions highlights the importance of coordinated efforts to ensure stability in the region.
The redesignation of the Houthis as a terrorist organization will accentuate regional cooperation and military coordination with US allies and partners. The move will also increase the pressure on the Houthis, however, in such circumstances, the group may escalate their attacks in retaliation, further disrupting security using asymmetric warfare tactics. Trump has indicated that his administration will enact stronger measures against Iran and its regional proxies, with a focus on containing Iran’s regional influence and limiting its capacity to utilize groups like the Houthis.
