Secretary of State Mike Pompeo also says the State Department will designate three Houthi leaders as terrorists.
Officially called Ansar Allah, the Iranian-backed force controls large parts of Yemen and its capital.
A US-backed Saudi-led coalition has been fighting it since 2015.
Houthi rebels are accused of launching attacks against civilian targets in Saudi Arabia and targeting significant oil facilities.
To discuss the latest updates, Al Jazeera spoke with Marwan Kabalan, the director of policy analysis at the Arab Center for Research and Policy Studies in Doha.
And from Sanaa, we are joined by Hussain al-Bukhaiti, a pro-Houthi journalist.
