New U.S. sanctions on individuals accused of trafficking drugs through Yemen are unlikely to shift the Houthis’ core strategies, according to regional experts. The U.S. Treasury this week sanctioned figures allegedly tied to Captagon and methamphetamine smuggling operations believed to benefit the Houthi movement. But analysts say the group’s power does not rest primarily on such illicit trade.

Houthis Finance Operations Through Territory And Taxation

The Houthis reportedly control taxation across large parts of northern Yemen, particularly at checkpoints and commercial crossings. They also benefit from customs duties, extortion from humanitarian agencies, and monopolization of fuel imports in territories under their control. "They don’t depend on cartels—they depend on territory," said Nadwa Al-Dawsari, a Yemen analyst.

The U.S. believes sanctioned networks moved drugs via maritime routes from Lebanon and Syria, through Yemen, into Gulf markets and Africa. However, experts caution against expecting these sanctions to disrupt Houthi military or political calculations.

Focus Remains On Red Sea Disruption

Rather than being driven by financial motives, analysts say Houthi actions—particularly missile and drone attacks in the Red Sea—are ideologically and geopolitically motivated. The group aims to pressure Israel and the U.S. in solidarity with Palestinians, as well as boost its domestic and regional profile.

"The sanctions will hurt individuals but not the movement’s strategic calculus," said one Middle East security consultant. As long as the Houthis hold key Yemeni infrastructure and enjoy tacit backing from Iran, their Red Sea campaign is expected to continue regardless of financial constraints.