Iranian LPG continues to dominate Houthis’ imports as Ofac deadline looms
- Since the Houthis began attacking ships in November 2023, likely all but two LPG cargoes imported by the militants came from Iran
- US under Biden permitted transactions related to importation of refined products involving the Houthis and entities they control but these will no longer be permitted starting April 4
- China is the main destination for US-sanctioned gas carriers carrying Iranian LPG, while the Yemeni faction is taking about 9% of LPG cargoes carried on blacklisted tankers, according to Vortexa data
Indications that the Houthis may be attempting to restore some diversity to their LPG suppliers late last year were a blip rather than a trend, with the Yemeni faction resuming its exclusive reliance on Iran since then. The end of an Ofac exemption permitting transactions related to refined petroleum products may stem some of these flows, although Iranian LPG supply chains have extensive sanctions-evasion mechanisms in place
