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.

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. The waterway connects the Red Sea to the Gulf of Aden and carries a significant share of global maritime trade and energy shipments.

For the Trump administration, the Houthi advance is becoming as much a financial challenge as a military 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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The Houthis operate a financial network that extends far beyond Yemen, according to Adam Rousselle, founder of Between the Lines Research. 

“We’re dealing with a very well-capitalized group,” Rousselle told Fox News 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, Türkiye and Southeast Asia.

Control of ports has historically been central to Houthi revenue because Yemen depends heavily on 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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The group’s latest territorial gains could strengthen that economic base even further.

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.

“The most important source of that leverage is territory,” Al-Dawsari testified. “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.”

“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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Rousselle said the Houthis’ finances should not be understood simply as Tehran handing cash to an Iranian 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.

“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. “Most of their money is made inside Yemen — customs and taxes at Hodeidah and Ras Isa, and fuel above 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. Treasury has also documented Houthi revenue from taxes imposed on petroleum imports.

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“Sanctions can’t reach domestic extraction,” Maleki said. “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.”

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.

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. Blockchain analytics cited in Rousselle’s GNET research identified nearly $900 million in outflows across those addresses.

Rousselle cautioned against treating that figure as a complete picture of Houthi wealth.

“The system is more important than the number itself,” he said, describing the network as fluid and difficult to quantify.

Russia, he argued, has become a particularly significant part of the network. “The Russians are definitely more hands-on in their support,” Rousselle said.

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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.

The China connection is more complicated. Rousselle said Chinese-linked private commercial actors appear in parts of the network but distinguished that activity from proven direct Chinese government involvement.

“The Chinese are kind of … turning a blind eye,” he said.

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.

Al-Dawsari pointed to a broader Chinese role in Houthi supply 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. 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.

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.

Rousselle said decentralized illicit-finance networks present a fundamental challenge.

“You’re dealing with a ‘you shut down one, another pops up’ kind of situation,” he said.

Maleki argued that Washington should concentrate on the points where Houthi money intersects with the formal financial system.

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“The soft spots are wherever Houthi money touches the formal system,” he said. “Treasury has named the Yemeni banks and the Sana’a exchange houses that pay for missile components; it should now name the foreign correspondents still clearing for them. That is the one tool that changes behavior overnight.”

Oman represents another potential pressure point. “Oman is the Houthis’ land bridge and their mailing address,” Maleki said.

But squeezing Houthi finances presents another dilemma: Yemen remains one of the world’s most fragile humanitarian environments, and the Houthis control ports and infrastructure through which civilians receive food, fuel and other basic goods.

“I would be lying if I had a concrete answer to it,” Rousselle said when asked how Washington could disrupt Houthi revenue without worsening the humanitarian crisis.

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“The humanitarian argument is the Houthis’ best shield, and it’s backwards,” Maleki said. “Food and medicine are licensed and should stay that way.”

“Keep the goods flowing and take away the toll,” he added, arguing that Washington should seek ways to prevent humanitarian trade from generating taxes and fees for Houthi authorities.

Rousselle warned that the challenge extends far beyond Yemen.

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“This isn’t just about the Houthis,” he said. “This is about any sanctioned actor worldwide capable of harnessing financial systems that are completely outside of regulatory control.”

The Treasury Department did not immediately respond to Fox News Digital’s request for comment.

President Donald Trump says the United States is making progress in reopening the Strait of Hormuz and escorting more oil through the waterway, yet oil prices have jumped in recent days.

The recent attacks on shipping in the Strait of Hormuz and Saudi energy infrastructure have also pushed crude prices up, with Brent crude rising $3.21 to $107.82 a barrel.

The apparent contradiction between US claims and surging oil prices shows the reality on the ground is complicated at best.

So, what do we know about shipping traffic in the Strait of Hormuz, and where are oil prices headed?

What are the US, Iran and others claiming about the Strait of Hormuz?

Washington says traffic through Hormuz has been improving despite the two sides being in a diplomatic deadlock.

US Energy Secretary Chris Wright on Sunday said 10 million barrels of oil per day, on average over the past week, were passing through Hormuz, adding that “we’re back to two-thirds or north of two-thirds of the previous flows.

“So the world oil markets are tighter than we’d like today, but they’re not overly tight,” Wright added, according to US media outlet Bloomberg News.

President Trump has made similar claims, stating that the US is in “total control” of the strait and asserting that its forces are escorting ships carrying millions of barrels of oil through the waterway, through which a fifth of global oil and gas passes.

Iran has, however, disputed the US claims. Tehran says it controls access to Hormuz and has warned ships against using routes it has not authorised. Last week, Iran announced a new restricted shipping zone around the crucial waterway.

Shipping data from tanker trackers also suggests traffic remains well below normal levels. Preliminary ship-tracking data shows vessel transits through the Strait of Hormuz falling to single digits a day over the weekend, remaining well below the 10-day average of 14 a day, the Reuters news agency reported.

Reuters said a total of 14 vessels transited the waterway, with four exiting the Gulf and 10 entering it.

More than 100 vessels passed through the strait daily, carrying an estimated 20 million barrels of oil, before the US and Israel launched the war on Iran in February.

The data is preliminary and subject to updates, as some vessels navigate the passage with their Automatic Identification System transponders switched off, meaning they are excluded from the official counts, Reuters added.

What is the latest with oil prices?

Oil prices jumped more than 3 percent on Monday after an Iranian ship was attacked on Sunday in the Strait of Hormuz and Saudi Arabia’s critical East-West oil pipeline was damaged in a drone attack.

Brent crude rose $3.21 to $107.82 a barrel, while US West Texas Intermediate gained $3.17 to $103.22.

The rise came after Saudi Arabia’s East-West oil pipeline was temporarily shut by a drone attack originating from Iraq, according to Saudi officials.

Riyadh has been using the pipeline to export oil via the Red Sea amid the Iranian blockade of the Strait of Hormuz. Four percent of the global oil supply will be threatened if the pipeline remains shut.

A series of missile and drone attacks by Yemen’s Houthi group on southern Saudi Arabia in recent days has further added to the uncertainty about oil supply originating from the world’s largest oil producer.

On Tuesday, the Yemeni group hit civilian and economic sites in the cities of Abha, Khamis Mushait, Jizan and Najran, injuring 73 people, among them women and children.

The assault on the kingdom marks a sharp escalation in Yemen’s long-running war, which flared up again in July after nearly four years of relative calm under a United Nations-brokered truce.

Why are oil prices climbing, despite US assurances?

Chris Beauchamp, chief market analyst at IG Group, says oil prices are likely to remain under upward pressure as disruption in the Strait of Hormuz continues, despite US claims that it is clearing traffic through the waterway.

“Despite US claims to the contrary, Hormuz is not under its control, and oil is not flowing freely,” he said.

Beauchamp says passage through Hormuz remains severely limited and ships continue to face attacks, while Houthi attacks on infrastructure have added another source of concern for energy markets.

“Near-month futures continue to trade at a premium to the spot price, a recognition that disruption is expected to continue, ratcheting up the pressure on the global economy,” he added.

Christopher Haines, the Global Head of Oil, Energy Aspects, says crude prices will continue to rise, pointing out that oil flows through the Strait of Hormuz are still notably lower than pre-conflict levels and the global oil reserves, which helped steady the market over the last six months, have dwindled.

“The US Strategic Petroleum Reserve (SPR) has little to give with announced releases having ended… while China will not be able to reduce their buying as they did in the summer due to higher seasonal demand in the winter,” Haines told Al Jazeera.

“Crude buying has been robust as refiners have to run harder to produce the fuels the northern hemisphere needs for heating.

“We believe oil prices can continue to rise, as without the buffers we have had over recent months, prices will have to increase to curb demand.”

Early on Sunday, the United Kingdom Maritime Trade Operations centre said a vessel was struck by an unknown projectile while transiting Hormuz.

Meanwhile, Iran’s Islamic Revolutionary Guard Corps on Monday said it had intercepted and destroyed an advanced MQ-1 drone that was flying over the Strait of Hormuz.

“With no one in a hurry to talk, it seems that oil prices will continue to rise, and a return to March’s highs seems to be a matter of when, not if,” Beauchamp said.

A meeting in Oman between Gulf countries and Iran to discuss possible agreements on the Strait of Hormuz, which had been scheduled for Monday, was postponed, further delivering a blow to diplomatic overtures to end the six-month war.

Iran on Monday said the planned meeting was postponed by Saudi Arabia over the recent events in Yemen.

US Energy Secretary Wright also poured water over any hopes for a diplomatic breakthrough, saying “counting on a consensual agreement with Iran today is certainly not a good bet,” according to Bloomberg.

Meanwhile, Abdul Khalique, head of the Liverpool John Moores University Maritime Centre, said the Houthi group’s growing presence along Yemen’s western coast, next to the Bab al-Mandeb strait, was also a reason for a surge in oil prices.

“The Bab al-Mandeb strait is now largely under Houthi control,” Khalique told Al Jazeera, referring to the vital shipping route connecting Asia with Europe.

“Having already taken the port of Mocha and the islands of Hanish and Zuqar earlier in the week, Iran-aligned Houthi forces seized the strategically vital Perim (Mayyun) Island and the mainland town of Dhubab, giving them effective control of Yemen’s entire Red Sea coastline.”

Khalique added that war risk insurance for Hormuz transits, which stood at about 0.25 percent of hull value before the war, has climbed as high as 3 to 10 percent of hull value, depending on the vessel and route.

“For a $100m tanker, that range translates to a war risk premium of $3m to $10m for a single transit, before cargo cover and freight costs are added on top,” he said.

“The US may hold substantial military control over the battlespace, but it has not restored the conditions needed for a resumption of normal commercial shipping, and that gap is precisely why oil prices continue to climb even as Washington declares victory.”

The 31st Busan International Film Festival (BIFF) has unveiled the lineup and schedule for three of its fan-facing programs: Open Talk, Outdoor Stage Greeting and Talk-to-Talk. Held at the Busan Cinema Center Roof Theater and the HANMAC Smooooth Lounge, the sessions give audiences a chance to meet directors and cast members from a wide range of Korean and international selections.

Open Talk opens Oct. 7 with director Lee Chang-dong and stars Jeon Do-yeon, Sul Kyung-gu, Zo In-sung and Cho Yeo-jeong for “Possible Love,” followed by “Cattle Run,” bringing director Kim Ji-hyun together with Ryu Seung-ryong, Park Hae-jun, Ong Seong-wu and Lee Sang-hee, and “The Table: Day and Night,” pairing director Kim Jong-kwan with Kim Min-ha, Joo Jong-hyuk, Han Sun-hwa, Shim Eun-kyung, Jeon So-young and Kim Dong-hwi.

On Oct. 8, “Sapiens” brings out director Lee Hu-bin with Jung Sung-il, You Chea-myung and Ryu Hyunkyung, while “Dead-End Job” pairs director Kim Da-min with Kim Min-ha and Choi Hyun-wook. Oct. 9 sessions include “The Blue Road,” with director Han Jun-hee alongside Son Sukku, Nagayama Eita and Kim Shin-rok; “Ugly Duckling Ms. Maeng,” with director Lee Yong-jae and stars Lee Sun-bin, You Chea-myung, Jun Suk-ho and Kim Young-min; and “The Sorry Generation,” with director Kim Sung-yoon and actors Jung Jae-young, Kim Joo-ryoung, Lee Yi-kyung and Kim Ah-young.

A “BIFF Discoveries: Rising New Talents” session on Oct. 10 features Jeon So-young and Kim Dong-hwi from “The Table: Day and Night” alongside Sim Su-bin, who appears in both “The Birds” and “The World Before.” The program closes Oct. 13 with Isabelle Huppert and director Marc Fitoussi discussing their collaboration on “All About Corinne.”

Outdoor Stage Greeting runs Oct. 7 through Oct. 11 and covers dozens of titles. On Oct. 7, director Stephanie Ahn appears with Moon Choi and Son Sukku for “Bedford Park”; director Fujii Michihito and actor Yokohama Ryusei present “You, Like a Star”; director Sato Sakichi brings Sawajiri Erika and Maruyama Ryuhei for “The Chain of Roses”; director Hur Jin-ho appears with Yoo Hai-jin, Park Hae-il and Lee Min-ho for “The Assassin(s)”; director Feng-I Fiona Roan brings Shuhua Yeh, Xuan Chen and Kent Tsai for “Happily Ever After”; director Woo Min-ho appears with Hyun Bin, Jung Woo-sung and Woo Do-hwan for “Made In Korea” Season 2; and director Kore-eda Hirokazu presents “Look Back” with Deguchi Natsuki, Makita Aju, Nanase Furi and Okada Rokka.

Oct. 8 brings director July Jung with Kim Doyeon and Choi Wonyoung for “Dora”; director Kim Joung-hoon with Kim Jae-won, Cho Yi-hyun, Kang You-seok and Bae Gang-hee for “Final Interview”; a second “BIFF Discoveries” session featuring Kim Doyeon from “Dora”; director Hong Sung-min with Jung Sung-il and Park Ji-hyun for “Sinner”; director Song Il-gon with Kim Hye-ja, Park Seo-kyung, Choi Ju-eun, Moon Seong-hyun and Lee Seyoung for “Still Shining”; director Kamila Andini and producer Ifa Isfansyah with Putri Marino, Christine Hakim and Arya Saloka for “Four Seasons in Java”; director Takemura Kentaro with Michieda Shunsuke and Anzai Seira for “In the Clear Moonlit Dusk”; and actors Michelle Mao and Jin Ha for “zi.”

Oct. 9 features director Yeon Sang-ho with Kim Hyun-joo for “Paradise Lost”; director Wang I-fan with Fukushi Sota and Han Ning for “The Scar-Faced Cat: Way of Asura”; and director Yoon Dan-bi with Sim Su-bin and Kim Eo-jin for “The World Before.” Oct. 10 brings actors Shin Mina, Ju Jihoon, Lee Jongsuk and Lee Seyoung for “The Remarried Empress,” plus Kwon Haehyo and Park Miso for “Nowhere to Lay My Eyes.”

The section wraps Oct. 11 with an “Italy’s Fearsome New Directors” session pairing “Föa – Once Upon a Future” director Margherita Ferrari and producer Raffaele Perillo with “Deep Blue” director Ernesto Maria Censori, actor Andrea Arcangeli, producer Giorgio Gucci, screenwriter Lorenzo Marinelli and editor Chicchi Tadeucci; “Inherit,” with director Banjong Pisanthanakun and actors Davika Hoorne and Thitiya Jirapornsilp; and a joint stage greeting for Flash Forward section directors Rhys Marc Jones, Jannis Lenz, Fernanda Tovar, Jacqueline Lentzou, Emmanuel Marre, Manuel Wetscher, Margherita Ferrari, Grzegorz Dębowski and Manuela Martelli.

Talk-to-Talk splits between the Roof Theater and the HANMAC Smooooth Lounge. At the Roof Theater on Oct. 10, “Women Directors: Taking the Scene” gathers Margherita Ferrari, Marjan Khosravi, May El-Youkhy, Michelle Zhou, Zainab Entezar, Jacqueline Lentzou and Julie Lecoustre. At the HANMAC Smooooth Lounge, Majid Majidi discusses his career from “Children of Heaven” to “Midday Meal” on Oct. 9, followed by four “Vision Korea” panels on Oct. 10 and Oct. 11 connecting directors and actors from “Things I Left at the Theater,” “Not for You” and “The Flower”; “Earbug,” “Some Detective” and “Nothing Has Happened Yet”; “The Birds,” “Space” and “Cosmic Trace”; and “Baler,” “Beyond Love’s Horizon” and “Full Moon.”

A session titled “Asian Cinema Through Global Eyes” brings together Martine Therouanne of the Vesoul International Festival of Asian Cinema, Sabrina Baracetti of the Udine Far East Film Festival, Jeon Hyejung of the London East Asia Film Festival, Samuel Jamier of the New York Asian Film Festival and Teruoka Sozo of the Osaka Asian Film Festival. Directors Marco Nguyen and Nicolas Athané appear for “The Hottest Virus of the Year, ‘Jim Queen,’” and the program closes Oct. 13 with Kim Ah-young and Kim Seulki discussing their move from “SNL Korea” to film.

The 31st Busan International Film Festival will run Oct. 6-15 at the Busan Cinema Center and venues throughout Busan, with the 21st Asian Contents & Film Market held Oct. 10-13.