New Crypto Front Emerges In Israel's Militant Financing Fight

The ceasefire, initiated on Friday, has resulted in the release of dozens of hostages, with over 100 Palestinian prisoners held on terror charges freed by Israel as part of the agreement.

Hamas is pushing for an extended truce, to give the group time to regroup amidst the devastation inflicted by Israel's relentless retaliation for its massacre of October 7. The designated terror group killed 1,200 mostly civilians and took 240 or more hostage in Gaza.

However, in spite of the fact that over 14,000 Gazans have been killed, including top Hamas commanders, and half of the strip now turned to rubble, Ali Fadavi, the deputy commander of the Islamic Revolutionary Guard Corps (IRGC), asserted on Monday that the Israeli military's perceived invincibility has diminished.

"The invincible image that Israelis had portrayed for military dominance collapsed," he said. "Several hundred individuals breached its seemingly impregnable walls, penetrating tens of kilometers into occupied Palestine."

Israeli Prime Minister Benjamin Netanyahu, addressing his forces in Gaza, conveyed a resolute stance on Sunday, stating that once hostages are released, "Nothing will stop us." He said while the hostage release continues, he would agree to one additional day for every 10 captives released but vowed to continue the war until Hamas is eradicated from the strip.

While Iran takes credit for supporting Hamas financially and militarily over the past two decades, it has refrained from direct military involvement in the current conflict. Instead, its proxies have taken the front line. Even amidst the ceasefire, Lebanese Hezbollah has continued its aggression on Israel's northern border and Yemen's Houthis have taken further actions on vessels in the Red Sea.

It has drawn the US into yet another potential conflict in the region as a US Navy warship responded to a distress call from a commercial tanker in the Gulf of Aden that had been seized by the militia.

The Houthis subsequently fired missiles at the USS Mason, which had come to the aid of the hijacked cargo tanker, identified as the Central Park.

US Central Command first released a statement on Sunday claiming that “coalition elements demanded release of the vessel” after coming to its aid. “Subsequently, five armed individuals debarked the ship and attempted to flee via their small boat. The Mason pursued the attackers resulting in their eventual surrender. The crew of the M/V Central Park is currently safe,” it said.

However, in the early hours of Monday morning local time, it said “two ballistic missiles were fired from Houthi controlled areas in Yemen toward the general location of the USS Mason Ason (DDG 87) and M/V Central Park. The missiles landed in the Gulf of Aden approximately ten nautical miles from the ships”. 

It came as the troops were concluding the response to the M/V Central Park distress call. “There was no damage or reported injuries from either vessel during this incident”, it confirmed, though raising alarms as to what will be next from the Yemeni militia group.

The Southern Transitional Council in Yemen, which has been fighting the group designated a terror group by countries including the United Arab Emirates and Saudi Arabia, released a statement calling out Iran.

“The Houthi seizure of a vessel in the territorial waters of the Gulf of Aden … is also further evidence that the Houthis are acting as a tool of the Islamic Republic of Iran, obedient to its directives and causing harm to its neighbouring countries.”

Since the Hamas invasion of Israel on October 7, in which 1,200 mostly civilians were killed and another 240 or more hostages taken to Gaza, proxy activity has heightened. On Israel’s northern border, Hezbollah has been increasing its attacks, while proxies in Syria and Iraq have also fired towards its border.

However, it is the Yemeni proxy, the Houthis, which has been the surprise factor, launching both long-range missiles towards Israel and stepping up activities in the Red Sea.

The US was clear in its support of Israel’s right to defend itself in the wake of the single most deadly day for Jews since the Holocaust but as the death toll mounts and Gaza’s destruction continues as Israel vows to wipe out Hamas, both the US and Israel have become the new target of Houthi terror.

A container ship managed by an Israeli-controlled company was hit by a suspected Iranian drone in the Indian Ocean, causing minor damage to the vessel but no injuries, a US defence official said on Saturday.

Earlier this month, the Galaxy Leader was taken to a Yemeni port after the proxy group believed it was owned by an Israeli businessman, though the vessel was operated by Tokyo-based firm Nippon Yusen.

At the time, Israeli PM Benjamin Netanyahu was quick to point the finger at Iran. “This is another Iranian act of terrorism that represents an escalation in Iran’s belligerence against the citizens of the free world, with concomitant international ramifications vis-a-vis the security of global shipping routes,” his office said.

The Southern Transitional Council condemned the “acts of terrorist piracy and calls on the international community to shoulder the grave responsibility of confronting and deterring these threats with the utmost resolve. Houthi actions and persistent terrorist behavior continue to obstruct all peace efforts in the South and Yemen, as well as at the regional level”.

It has reignited the fierce debate over the US redesigning the Houthis, the Biden administration removing the label amidst the humanitarian crisis resulting from years of civil war in Yemen.

It is being weighed at the top levels. “In light of the recent targeting of civilians by the Houthis, and now the piracy of a ship in international waters, we have begun a review of potential terrorist designations, and we’ll be considering other options together with our allies and partners,” National Security Council spokesman John Kirby said.

Experts agree. “A redesignation of the Iran-supported Houthi organization Ansar Allah [Houthis] is long overdue,” said Matt Zweig, Senior Director of Policy for FDD Action, a US-based think tank.

“For far too long, they have threatened and attacked international shipping and US allies and partners in the region. To more effectively combat their sources of funding — including the regime in Iran — the United States should designate Ansar Allah as a specially designated global terrorist organization and a foreign terrorist organization.”

After last year’s attacks in Abu Dhabi, the United Arab Emirates has also been pushing the US to relist the Houthis. UAE and US air defenses prevented mass casualties during three attacks, though the strikes still killed three individuals and injured six.

“The UAE is urging the US to re-list the Houthis as a foreign terrorist organization under US law to disrupt their financial networks and foreign support while providing appropriate exceptions to ensure that humanitarian relief can continue unimpeded”, it wrote in an extensive report which noted the threats the group poses to the US as well as the region.

The US military announced that the Carrier Strike Group Eisenhower (IKECSG) completed a transit of the Strait of Hormuz to enter the waters of the Persian Gulf to support US Central Command missions.

Following the October 7 terror attack on Israel by Hamas and the start of the Gaza war, the US first deployed two strike groups to eastern Mediterranean in what appeared as a deterrence against the Lebanese Hezbollah. The Shiite militant group is believed to possess tens of thousands of missiles and rockets that could bring destruction to Israel. The Hezbollah has since engaged in limited border skirmishes but has avoided a full-scale war with Israel.

Iran’s regime has also chosen not to directly get involved in the Gaza war, although officials issue daily statements of support for Hamas.

The US said that the IKECSG are patrolling the Persian to ensure freedom of navigation in key international waterways while supporting CENTCOM requirements throughout the region.

Iranian officials periodically threaten to close off the Strait of Hormuz or inspect vessels. They have attacked and harassed dozens of commercial vessels in the region since 2019.

“The aircraft carrier USS Dwight D. Eisenhower was accompanied by the guided-missile cruiser USS Philippine Sea, guided-missile destroyers USS Gravely and the USS Stethem and the French frigate Languedo,” the USCENTCOM said.

Ezzatollah Zarghami disclosed that “a budget of 15,000 billion rials (equivalent to 30 million USD) was earmarked for the development of the cultural heritage ministry, with a portion specifically designated for the restoration of historical and cultural monuments. However, due to the challenges faced by the country, the budget has not been disbursed to the ministry.”

The minister did not elaborate on the nature of the challenges but expressed hope that the funds would be provided later.

The situation is exacerbated by a broader historical trend since the 1979 Islamic Revolution, which has seen a nonchalant approach towards pre-Islamic relics. Despite Iran's profound historical legacy, the present regime has not fully embraced its rich heritage, even though the country once presided over the world's largest empire.

Previous instances, such as the announcement in September 2020 by then Minister Ali Asghar Mounesan of a meager annual budget of 50 million rials (approximately 100 USD) for the management of Persepolis, reflect a systemic issue in adequately allocating funds for the preservation of cultural treasures.

Despite warnings from cultural heritage experts, the inauguration of the Chamshir Dam in the Kohgiluyeh and Boyer-Ahmad province on July 17 proceeded. Archaeologists predict that the impoundment of the dam will result in the loss of at least 140 historical monuments in the region, underscoring the destructive consequences of inadequate attention and funding for Iran's cultural heritage.

In May, the government announced plans to auction off some of the country's most treasured sites including Rayen Castle as the country's heritage risks disappearing amidst a government more concerned with its nuclear and military might than its ancient history. 

While no group immediately claimed responsibility for the attack, speculations point to Iran-backed Houthis who have been behind several other maritime attacks in recent days.

Central Park, a small chemical tanker (19,998 metric tons), is managed by Zodiac Maritime Ltd, a London-headquartered international ship management company owned by Israel's Ofer family. The Liberian-flagged vessel was built in 2015 and is owned by Clumvez Shipping Inc, LSEG data showed.

Zodiac Maritime said in a statement Central Park, which is carrying a full cargo of phosphoric acid, was involved in a suspected piracy incident while crossing international waters, approximately 54 nautical miles off the coast of Somalia. Phosphoric acid is mostly used for fertilisers.

"Our priority is the safety of our 22 crew onboard. The Turkish captained vessel has a multinational crew consisting of a crew of Russian, Vietnamese, Bulgarian, Indian, Georgian and Filipino nationals," the statement added.

"US and coalition forces are in the vicinity and we are closely monitoring the situation," a US official said.

The Sunday attack followed a seizure of another Israeli-linked cargo ship by Yemen's Houthis in the southern Red Sea last week,when the militants seized a cargo ship in the southern Red Sea as it was sailing from Turkey to India. The hijacked ship was Galaxy Leader, registered under a British company, which is partially owned by Israeli tycoon Abraham Ungar who goes by Rami. He is the founder of Ray Shipping Ltd., and is known as one of the richest men in Israel. The vessel was leased out to a Japanese company at the time of the hijacking.

Britain's Maritime Trade Operations agency (UKMTO) said on Sunday it was aware of a possible attack in southwest Aden and called on other vessels to exercise caution.

The US has blamed Iran for unclaimed attacks on several vessels in the region in the past few years. Tehran has denied involvement.

A container ship managed by an Israeli-controlled company was also hit by a suspected Iranian drone in the Indian Ocean this week, causing minor damage to the vessel but no injuries, a US defense official said on Saturday.

Additionally, the US Central Command (CENTCOM) announced in a post on X that it had intercepted and shot down several one-way attack drones launched by Iran-backed Yemeni Houthis on Thursday morning. The attack was repelled by the USS Thomas Hudner, an Arleigh Burke-class guided missile destroyer.

The Sunday incident is the latest in a series of attacks in Middle Eastern waters since Hamas declared war on Israel on October 7. Israel has been pounding the enclave to uproot the Islamist group, which has made the war exceedingly bloody hiding deep among the civilian population and underneath the coastal sliver’s non-military facilities. Houthis, which also fired ballistic missiles and armed drones at Israel, vowed to target more Israeli vessels.

Iran supports Hamas but says it did not play any role in the Islamist militants' October 7 terror attack that triggered the current crisis. Iran also backs the Hezbollah, a Lebanese militant group that has deep ties with Hamas and Islamic Jihad, another Palestinian faction in Gaza that is also backed by Iran.

The spokesman for Yemen's Iran-aligned Houthi military, Yahya Sarea, said last week that the group will target all ships owned or operated by Israeli companies or carrying the Israeli flag, according to the group's Telegram channel. The spokesman called on all countries to withdraw their citizens working on the crews of any such ships.

Iran's Foreign Minister Hossein Amirabdollahian said that “resistance groups allied to Iran are cleverly adjusting pressure" on Israel and its supporters. The ‘resistance' front or axis is the term coined by the Islamic Republic to describe its logistic, financial and intelligence support for the Syrian regime, the Lebanese militant group Hezbollah, and dozens of militia groups in the region, several of which were created by Iran.