Houthis demand $51 billion and official recognition from Saudi Arabia to end Yemen war
The Iran-backed Houthi movement has asked Saudi Arabia for $51 billion in compensation and formal acknowledgment as Yemen’s rulers as part of talks to halt hostilities.
Yemen’s Houthi rebels have told Saudi officials they would consider ending the conflict only if Riyadh pays $51 billion as compensation for years of airstrikes and a blockade and formally recognises the group as the legitimate authority in Yemen, according to a report citing Wall Street Journal sources. The demand was made after Saudi Arabia approached the Houthis to explore a negotiated settlement following recent Houthi attacks on Saudi oil tankers in the Red Sea and the seizure of territory near the Bab al-Mandeb strait.
People briefed on the talks said the $51 billion figure reflects the cost of damage caused by Saudi air operations and the prolonged maritime blockade. While other amounts have been discussed, the Houthis have indicated that any agreement would involve “tens of billions of dollars.”
The group also seeks official recognition of its rule, which would acknowledge an Iran-backed force on Saudi Arabia’s southern border. The demand comes amid an escalation of fighting this summer, including Houthi strikes on Saudi oil facilities, airports and a renewed offensive toward the port city of Aden, which houses the internationally recognised government backed by Saudi Arabia.
On 31 October, the Houthis fired two missiles at Aden’s presidential palace, a police official told AFP. The rebels have moved within about 50 miles of the city, their closest approach since 2015.
Saudi Crown Prince Mohammed bin Salman has indicated reluctance to negotiate without securing on-ground gains that would give Riyadh leverage, and has expressed concerns about the potential casualties and domestic backlash from a larger troop deployment. Saudi forces have responded with airstrikes, though the kingdom has not released casualty figures.
Analysts cited in the report said the financial demand could set a precedent for the Houthis to seek further monetary concessions in exchange for military de-escalation. Kristian Coates Ulrichsen of Rice University’s Baker Institute warned that Saudi Arabia now faces greater risks than during the earlier phase of the conflict, while Yemeni analyst Maged Al-Madhaji cautioned that the demand could encourage future escalations.
Saudi Arabia is also encountering difficulties in securing military backing from traditional allies. The United Arab Emirates withdrew its forces in December after disagreements with Riyadh, and while Saudi Arabia has pursued a Mecca Pact with Turkey and Pakistan, Turkey’s parliament has not yet ratified the agreement and Pakistan has declined to take part in strikes inside Yemen. Egypt’s parliament approved military support, but President Abdel Fattah Al Sisi said any deployment would be defensive. The United States has declined to provide direct assistance against the Houthis following its 2025 campaign against the group.
(With inputs from Wall Street Journal and AFP)