US removes Eritrean military, ruling-party and trading entities from SDN list after EO expiry
On 20 September 2026 the US Treasury’s OFAC removed the Eritrean Defence Forces, the People’s Front for Democracy and Justice and named entities (including Red Sea Trading Corporation) from the Specially Designated Nationals list after Executive Order 14046 expired, and removed related guidance/FAQs from its website.
The desk brief
On 20 September 2026 the US Treasury’s OFAC removed the Eritrean Defence Forces, the People’s Front for Democracy and Justice and named entities (including Red Sea Trading Corporation) from the Specially Designated Nationals list after Executive Order 14046 expired, and removed related guidance/FAQs from its website.
OFAC delisting reduces explicit US legal restrictions and FAQ guidance that had increased legal and insurance frictions for trade through Assab and Eritrea-controlled channels. If sustained, the change could lower transaction/legal risk premia for shipping and insurance on routes calling Assab, alter Red Sea routing economics and, over time, affect Djibouti and Ethiopia transit volumes and regional current-account and risk-premium dynamics. Actual market repricing will depend on insurers’ and banks’ operational decisions and counterparties’ risk appetite.
Major P&I clubs and international insurers to publish underwriting guidance or coverage changes for Red Sea/Assab routes.
Sources & verification
Developing storyFurther independent confirmation is required.
- US Lifts Sanctions on Eritrea After 2021 Executive Order Expiresdawan.africaSource published (opens in a new tab)
- US lifts sanctions on Eritrea with Red Sea in focusmiddleeasteye.netSource published (opens in a new tab)
Public references supporting this brief.