President Donald Trump announced executive order to rename Yemen Houthi rebels as a “foreign terrorist organization,” calling the group a threat to regional security, the White House said. Critics argued the move would make things worse already a terrible humanitarian crisis in the country.

The order restores the designation given to the Iran-backed group, formally known as Ansar Allah, late in the first Trump administration. The Biden administration rescinded the appointment shortly after taking office, in part to facilitate peace talks in Yemen’s civil war.

Last year, however, Biden’s team reversed course, labeling the Houthis a “specially designated global terrorist” organization — a less severe category — in response to attacks on American warships in the Red Sea.

“Houthi activities threaten the safety of American civilians and personnel in the Middle East, the safety of our closest regional partners, and the stability of global maritime commerce,” the White House said in statement on Wednesday.

Mr Trump’s executive order said US policy would seek to “eliminate Ansar Allah’s capabilities and operations,” in cooperation with regional partners. It also called on the US Agency for International Development to review the work United Nations partners, private humanitarian agencies and contractors work in Yemen and cut ties with all entities that paid the Houthis or opposed international efforts to counter the group.

Yemen is home to one of the world’s worst humanitarian crises, with more than 18 million people – more than half the population – in need of aid, according to the United Nations.

“The labeling will also affect the lifeline of remittances for Yemenis living in Houthi-controlled areas that make up the vast majority of the country’s population,” said Abdulwasea Mohammed, Oxfam’s Yemen Policy, Advocacy and Media Manager. “The appointment would send the entire country’s economy out of crisis and into free fall.”

During his first term, the Trump administration cited Houthi missile and drone attacks on Saudi Arabia and the United Arab Emirates as evidence of their threat to regional stability. US officials also hoped the appointment would pressure the Houthis to engage in peace talks.

The Biden administration initially revoked the terrorist designation attracted criticism from regional allies such as Saudi Arabia and the United Arab Emirates.

Since the Hamas-led attack on Israel in October 2023, the Houthis, who act as the de facto government in much of northern Yemen, have fired hundreds of rockets and drones on Israel in solidarity with Hamas.

Israel welcomed the Houthi reappointment on Thursday.

“The Houthis have repeatedly attacked Israel without any provocation on its part,” Israeli Foreign Minister Gideon Saar said on X. “This is an important step in the fight against terrorism and destabilizing elements in our region.”

Rebels have also attacked commercial shipping in the Red Sea and Gulf of Aden, disrupted global maritime trade through key shipping routes for traffic to Europe, Asia and the Middle East.

On Sunday, the group announced that it would reduce your attacksgiven the ceasefire in the Gaza conflict that came into effect over the weekend.