Saudi Arabia is facing a fresh challenge from Yemen’s Iran-backed Houthi rebels, who have reportedly demanded $51 billion in compensation and recognition as Yemen’s rulers in exchange for a ceasefire.
According to a report by The Wall Street Journal, the demand was made during discussions aimed at stopping renewed attacks on Saudi interests. The Houthis claim the money is compensation for years of Saudi airstrikes and the blockade imposed during Yemen’s civil war.
The rebels have also strengthened their position on the battlefield, advancing towards Aden, the southern port city and seat of Yemen’s internationally recognised government. Their forces have reportedly moved within around 50 miles of the city.
Meanwhile, Houthi attacks have increasingly targeted Saudi infrastructure, including airports and facilities linked to oil giant Saudi Aramco. The attacks have raised concerns over the kingdom’s security and investment environment.
Saudi Arabia has responded with airstrikes but faces limited military support from regional allies. A ground offensive could also result in significant casualties and further escalate the conflict.
Accepting the Houthi demands could weaken Riyadh’s regional influence, while rejecting them risks prolonging the confrontation.
The growing crisis has left Saudi Arabia facing a difficult choice between negotiations and another costly military campaign.