It was one of Joe Biden’s first major foreign policy decisions.

Less than a month after taking office in January 2021, the US President removed two “terrorist” designations imposed by his predecessor Donald Trump against the Houthi rebels in Yemen.

Then-Secretary of State Antony Blinken said The move was made in “recognition of the terrible humanitarian situation in Yemen.” The United Nations, as well as humanitarian groups and U.S. lawmakers, had warned that the designations could be “terrorist.” interrupt the flow of aid to the country.

Now, almost exactly three years later, the Biden administration is reinstating one of the designations against the Houthis, declaring them a “specially designated global terrorist group” amid a series of attacks Attacks in the Red Sea.

And once again, human rights activists and political analysts are sounding the alarm about the negative impact the decision could have on Yemeni civilians. Many also question whether Wednesday’s designation will succeed in persuading the Houthis to stop their attacks.

“I am very concerned about the devastating consequences for ordinary people in Yemen,” said Afrah Nasser, a non-resident researcher at the Arab Center Washington DC who previously worked as a Yemen researcher at Human Rights Watch.

Nasser told Al Jazeera that the designation risks worsening the humanitarian crisis in Yemen, where a war has raged for years between the Houthis and a coalition led by Saudi Arabia and the United Arab Emirates.

More than half of Yemen’s population – 18.2 million people – are in need of aid. according to the UNwhile the country suffers from economic crisis, rising costs, mass displacement and hunger.

“The ordinary Yemeni family today suffers from both Houthi domestic politics and the international community’s policies in Yemen, such as this one [US] term we heard today,” Nasser said. “Yemenis are caught between two fires.”

Attacks in the Red Sea

In a statement Wednesday morning, Blinken said the Specially Designated Global Terrorist Group (SDGT) designation was in response to Houthi attacks on merchant ships in the Red Sea.

“This designation is intended to promote accountability for the group’s terrorist activities. “If the Houthis cease their attacks in the Red Sea and the Gulf of Aden, the United States will reassess this designation,” the top U.S. diplomat said.

The The Houthis, allied with Iranwhich control large parts of Yemen, began firing rockets at Israel and attacking merchant ships in the Red Sea shortly after the war in Gaza began in October.

The group vowed to target Israel-linked ships to pressure the country’s government to end the bombing of Gaza and allow more humanitarian aid shipments into the Palestinian coastal enclave. It later expanded the threat to all merchant ships traveling to and from Israel along the main trade route off the coast of Yemen.

The attacks caused shipping companies to suspend their activities in the Red Sea and were condemned by the United States and its allies.

Washington formed a naval coalition in December to protect merchant ships and also carried out what observers described as several strikes against Houthi targets in Yemen this month “dangerous” escalation.

On Wednesday, the Biden administration defended its decision to reimpose the SDGT designation on the Houthis, saying there would be “carve-outs” to protect aid to Yemen.

“Today’s designation targets the Houthis, not the Yemeni people,” National Security Council spokesman John Kirby said in a news conference.

When asked how the associated sanctions would affect negotiations with the Houthis, Kirby replied firmly: “There are no negotiations. There is no bargaining chip. It’s a way to hold the Houthis accountable.”

But experts doubt that the SDGT designation would prompt the Houthis to stop their attacks in the Red Sea, as the government had suggested.

“It seems highly unlikely that it will have any positive impact on the Houthis’ behavior,” said Brian Finucane, a senior U.S. program adviser at the International Crisis Group think tank.

“I think it’s a form of do-something,” he told Al Jazeera. The reintroduction of the SDGT designation, he added, reflects Washington’s refusal to recognize that recent Houthi attacks are linked to the war in Gaza.

“The Biden administration has pigeonholed itself … where it has no good policy options.”

The designation

An SDGT designation focuses primarily on the finances of an individual or group. In this case, the Houthis’ assets in the United States will be frozen and American citizens will be banned from conducting financial transactions with the organization.

And while “violations may result in civil and criminal penalties,” the designation is narrower than the second designation that the Trump administration used imposed to the Houthis: those of the “Foreign Terrorist Organization” or FTO.

This label makes it a serious crime to support a blacklisted group.

“The [SDGT designation] is a kind of minimalism: limiting access to funds from abroad, access to international markets. These are things that the Houthis do not have and have never had. They don’t own shares on the New York Stock Exchange,” said Nabeel Khoury, a former deputy chief of mission at the U.S. Embassy in Yemen.

Still, Khoury told Al Jazeera that the Houthis are unlikely to make a distinction between an SDGT or FTO designation and will view Wednesday’s decision as an affront that could lead to further escalation.

Hours after the designation was announced, the Houthis said they had fired “naval missiles” at an American ship in the Gulf of Aden. There was no immediate confirmation from Washington.

“It is truly astounding what this government is dealing with. I don’t think there was a lot of thought put into it,” he said. “This term is more of an insult. It’s the old glove in the face, hit someone with your glove. You’re a bit of a challenge, but you’re not really doing them any harm.”

Nasser also warned that this could further embolden the Houthis and “contribute to the radicalization of some parts of the population and strengthen the Houthi recruitment system.”

“Degree of insecurity for Yemenis”

But while the SDGT designation is “narrower” than an FTO, the Biden administration is aware “that these sanctions could make the situation worse for the people of Yemen,” Finucane said.

That’s because financial institutions and humanitarian organizations “will likely be very cautious when it comes to engaging with the Houthis in Yemen,” especially until clear rules for renaming are established, Finucane explained.

On Wednesday, the Biden administration said it was taking “significant steps to mitigate any negative impact this designation may have on the people of Yemen.” The decision will take effect in 30 days, Blinken’s statement said. During this time, the government will consult with aid organizations and other stakeholders.

The U.S. Treasury Department is also expected to issue licenses “authorizing certain transactions related to the provision of food, medicine and fuel, as well as personal remittances, telecommunications and mail, and port and airport operations on which the Yemeni people rely.” .

An SDGT designation means doing something for the sake of doing something. Like an FTO designation, it is toothless and will have no desired effect. While the FTO would have initiated a certain catastrophe, an SDGT only poses a significant catastrophe risk.

– Scott Paul (@ScottTPaul) January 16, 2024

But that has not dampened fears that the designation will have a negative impact on Yemenis.

“This designation would mean a further level of insecurity and threat to Yemenis, who remain in one of the world’s largest humanitarian crises,” Scott Paul, deputy director for peace and security at Oxfam America, told Al Jazeera in a statement written declaration.

“The Biden administration is playing with fire, and we call on them to immediately avoid this designation and prioritize the lives of Yemenis now.”

With files from Al Jazeera’s Ali Harb in Washington, DC