Saudi Arabia’s reported $1 billion Houthi deal

Saudi Arabia has reportedly offered $1 billion to Yemen's Houthi group as part of an Iran-mediated deal aimed at achieving a ceasefire and halting attacks on the kingdom, according to Israeli media citing diplomatic sources in the Gulf. Saudi Defence Minister Prince Khalid bin Salman travelled to Tehran for discussions, reportedly carrying the proposed $1 billion sum through Iran.

The talks involved Turkish intelligence chief Ibrahim Kalin, Pakistan's Army Chief Field Marshal Asim Munir, Iranian officials such as President Masoud Pezeshkian, and senior figures from the Islamic Revolutionary Guard Corps. Iran sought to mediate between Saudi Arabia and the Houthis amid heightened tensions, including attacks on Saudi airports and oil facilities and disruptions to oil exports through the Strait of Hormuz.

Saudi Foreign Ministry spokespersons confirmed the visit's purpose, stating it was part of ongoing efforts to de-escalate the crisis, encourage dialogue, and support Qatar and Pakistan's mediation efforts. The original financial agreement from three years ago, under which Saudi Arabia agreed to provide direct aid to the Houthis to support ceasefire adherence and infrastructure rebuilding, remains a point of contention.

The Houthis have accused Saudi Arabia of reneging on these earlier understandings. Israeli media reported this marked the first official meeting between representatives of Saudi Arabia's Mecca Joint Defense Alliance and Iranian leadership. Iran aimed to strengthen its regional influence while opposing US or Israeli military intervention, presenting itself as a regional diplomatic mediator in the ongoing tensions.