The situation in Yemen remains a protracted crisis characterized by political and military complexity, a stalled peace process, and severe humanitarian deterioration, leaving two-thirds of the population in need of assistance, according to a final report presented by the Panel of Experts on Yemen to the Security Council.
The report noted that despite the issuance of several UN resolutions, particularly Resolution 2216 (2015), the implementation of the financial sanctions against Houthis has been limited.
It said asset freezes and travel bans have a limited or constrained effect on the militia group, which actively and successfully circumvents restrictions through sophisticated networks of intermediaries and front companies in the region.
Therefore, the Panel called for the strengthening of the United Nations Verification and Inspection Mechanism (UNVIM), which inspects ships travelling to Houthi-controlled ports to promote compliance with the arms embargo on the group.
Also, it said, the Houthis continue to pose a significant threat to peace, security and stability in Yemen and across the region.
Their deadly attacks against vessels in the Red Sea and the Gulf of Aden undermined maritime security and the freedom of international trade.
The Panel said the Houthis continue to exploit the conflict in Gaza and their proclaimed solidarity with the Palestinians to justify their attacks on foreign ships as part of “the axis of resistance.
It warned that in the absence of a decisive deterrence, “grave consequences threaten regional stability and international navigation.” The Panel called on the Security Council to take stronger action, and support diplomatic efforts to revive the comprehensive Yemeni dialogue under the auspices of the United Nations.
Maritime Attacks
The Houthis have conducted at least 25 verified attacks against commercial vessels in the Red Sea and the Gulf of Aden, using missiles, drones and rocket-propelled grenades with increasing frequency and sophistication, the Panel said in its report. The attacks were carried out between 1 August 2024 and 31 July 2025.
It said the sinking of two vessels, the killing of seafarers and the environmental hazards caused were major concerns.
The report noted that the United States and Israel carried out military operations against Houthi positions in Sana'a, Hodeidah, and Saada, targeting weapons storage facilities and missile launchers.
However, according to the report, the militia group “maintained a high operational capability” and continues to develop its military arsenal with funding and logistical support from regional parties, in a reference to Iran.
Foreign Support and Economy of War
The Panel said analysis of Houthi smuggling trends revealed continued violation of the arms embargo, including through concealment or misdeclarations.
Detections have increased owing to the diversion of vessels to Aden port after air strikes affected the infrastructure and capacity of Hodeidah port.
It said the June 2025 seizure of 750 tons of illicit materiel and weapons by the government proves that violations of the arms embargo continue to occur.
The seizure included several advanced cruise, anti-ship and anti-aircraft missiles that displayed characteristics similar to those of weapons produced in Iran, such as the Ghadir anti-ship cruise missile, Shahed uncrewed aerial vehicle, AM-50 Sayyad anti-materiel rifle and the Misagh series man-portable air defense system.
The Panel noted that the knowledge and ability to manufacture weapons systems domestically remains in place, making it challenging to eliminate the Houthis’ capabilities.
In addition, the availability of financial resources plays a major role in maintaining supply lines and manufacturing capabilities, taking into account the Panel’s assessment that the asset freeze has had limited effect.
According to the Panel, the main source of revenue for the Houthis are taxes, including on the income of both individuals and companies, real estate, a sales tax on fuel and cigarettes and on all imports.
Those taxes are in addition to customs duties. The Houthis, as the de facto authority, collect a major share of surplus profits from all sectors, mainly from the financial and banking sector.
Widespread Violations
The Panel showed that widespread and systematic violations of international humanitarian and human rights law continue in Yemen, including indiscriminate attacks on civilians and civilian objects, arbitrary killings and detentions, conflict-related sexual violence, child recruitment and obstruction of humanitarian assistance.
The Houthis also continued to detain personnel of the United Nations, national and international NGOs, civil society organizations and diplomatic missions.
In addition, the Houthis used a range of repressive measures and heightened surveillance of people to prevent any opposition.
The Houthi practices therefore aim to establish a closed society with absolute loyalty to the group's leadership.
Coordination with Other Armed Groups
The Panel said it continued its investigations into the evolving relationship between the Houthis and Somali Harakat Al-Shabaab.
“That cooperation involves weapons smuggling, technical training, including in relation to operational tactics, and exchange of logistical support,” it wrote.
The Panel then proved the ability of the Houthis to conduct intricate operations inside and outside Yemen and establish a web of relations with armed groups in other countries.
It then noted that the strengthening of ties between the Houthis and Al-Shabaab could pose a growing threat to peace, security and stability not only in Yemen, but in the region as a whole.
