All of their property and interests in property subject to USA jurisdiction will be blocked, and US persons are generally prohibited from engaging in any transactions with them.
The announcement about Haniyeh was made by Ambassador-at-Large and Coordinator for Counterterrorism Nathan Sales at a conference of the Institute for National Security Studies (INSS) in Tel Aviv.
Secretary of State Rex Tillerson said in a statement that the sanctions aim to curb the activities of "key terrorist groups and leaders - including two sponsored and directed by Iran - who are threatening the stability of the Middle East, undermining the peace process, and attacking our allies Egypt and Israel".
Hamas, which has been on a USA terror blacklist since 1997, brushed off the announcement as a "failed attempt to pressure the resistance".
Hamas spokesman in Gaza Hazem Qasem said that listing Ismail Haneya on the list of terrorists is 'a failed attempt to keep pressure on the Palestinian armed resistance, Xinhua reported.
Hamas has fought three wars with Israel since 2008 and is held responsible by the USA for the killing of 17 Americans in attacks.
The State Department on Wednesday also blacklisted the Gaza-based militant group Harakat al-Sabireen and two Egyptian organizations: Liwa al-Thawra and HASM.
"This decision will not deter us from continuing the resistance option to expel the occupation".
"As for the Palestinian terrorist groups, it gives them potentially up to $100 million annually".
Hamas has frequently highlighted his modest background as a counterpoint to officials within president Mahmud Abbas's Palestinian Authority, who have been accused of being corrupt and too easily compliant with Israel or the United States.
Haniyeh has become one of the most prominent figures in Palestine to criticize President Donald Trump's decision to recognize Jerusalem as Israel's capital.
Christopher Sparks is a veteran journalist who has worked for metropolitan and community newspapers in New York City, Washington, D.C., upstate New York and Florida.