The Office of Foreign Assets Control (OFAC) said the delisting includes the Red Sea Trading Corporation, a state‑owned firm, and a number of individuals such as Hagos Ghebrehiwet, identified as a key financial official for the Eritrean government.
The 2021 sanctions were originally enacted over humanitarian and human‑rights concerns stemming from Eritrean forces’ involvement alongside Ethiopian troops against Tigray regional forces, a war that concluded with a peace accord in November 2022.
Eritrea’s Information Minister Yemane Gebremeskel called the sanctions “unwarranted” and said they had caused “considerable damage” to his country, adding, “We welcome the gesture and remedial measures by the Trump Administration,” in remarks to the Associated Press.
The timing of the delisting coincides with growing alarm over security in the Red Sea, where recent Houthi advances in Yemen have heightened the risk to commercial shipping passing through the Bab el‑Mandeb Strait.
Eritrea’s southern coastline and the port of Assab sit close to this strategic chokepoint that links the Red Sea to the Gulf of Aden, underscoring why stability in the region remains a priority for U.S. policymakers.
U.S. officials did not elaborate on whether the sanction removal reflects a broader shift in Washington’s approach to the Horn of Africa, but the move signals a willingness to reassess punitive measures as regional dynamics evolve.