Yemen’s Houthi rebels have reportedly demanded $51 billion from Saudi Arabia and official recognition as the country’s rulers in exchange for ending the war.
The outreach followed Houthi attacks on Saudi oil tankers in the Red Sea and the seizure of territory overlooking the strategic Bab al-Mandeb chokepoint.
The demand came after Saudi Arabia approached the Iran-backed group to explore a negotiated end to hostilities, according to a report by The Wall Street Journal.
The Houthis are also advancing towards Aden, the port city that serves as the seat of Yemen’s internationally recognised, Saudi-backed government. Strikes on civilian and energy infrastructure have also undermined investor confidence. Riyadh has since sought support through its Mecca Pact with Turkey and Pakistan, which commits members to treating an attack on one as an attack on all. However, Turkey’s Parliament has yet to approve the agreement, while Pakistan has refused to participate in strikes inside Yemen.
The rebels have moved to within around 50 miles of the city, their closest position since seizing parts of it in 2015. Kristian Coates Ulrichsen, an expert at Rice University’s Baker Institute, said Saudi Arabia faces greater risks now than during the earlier phase of the conflict between 2015 and 2022. The US has also declined to provide direct support against the Houthis following its weeks-long military campaign against the group in 2025.
The Houthis’ financial demand could create a precedent for further pressure on Saudi Arabia, said Maged Al-Madhaji, a Yemeni analyst and co-founder of the Sana’a Center for Strategic Studies, the WSJ report added. “The bigger problem is establishing a precedent whereby the group can escalate militarily whenever it wants additional concessions or money,” he said. Egypt’s Parliament approved military support for Saudi Arabia in October, but President Abdel Fattah Al Sisi has said any deployment would be defensive.
