Daijiworld Media Network - Riyadh
Riyadh, Nov 5: Yemen's Iran-backed Houthi rebels have reportedly demanded $51 billion from Saudi Arabia as compensation for years of Saudi military strikes and a prolonged blockade, setting a steep price for any negotiated settlement to end the escalating hostilities between the two sides.
According to a report by The Wall Street Journal, Saudi Arabia approached the Houthis to explore the possibility of a negotiated halt to the conflict after the rebels intensified attacks on Saudi oil tankers in the Red Sea and captured territory overlooking the strategically important Bab al-Mandeb Strait. However, people familiar with the discussions said the Houthis responded by seeking $51 billion to cover the damage caused by years of Saudi-led military operations and restrictions on Houthi-controlled areas.
Although different compensation figures have reportedly been discussed since then, the Houthis have made it clear that any settlement would involve payments running into tens of billions of dollars.
The rebels have also reportedly demanded that Saudi Arabia formally recognise them as Yemen's legitimate rulers. Such recognition would effectively mean Riyadh accepting an Iran-backed armed group as the authority governing its southern neighbour, a major political and security concession for the kingdom.
The developments come amid a sharp escalation in the conflict, with the Houthis expanding their military presence along Yemen's Red Sea coast and threatening Saudi Arabia's maritime trade and oil exports. Their advances around Bab al-Mandeb have increased their ability to influence one of the world's most important shipping routes, which connects the Red Sea with the Gulf of Aden and serves as a key passage for international trade between Europe and Asia.
The strategic waterway is particularly important for Saudi Arabia because of its role in transporting oil through the Red Sea. Any disruption to shipping through the narrow passage could affect energy supplies, increase transportation costs and create further uncertainty in global oil markets.
Saudi Arabia has been engaged in a prolonged conflict with the Houthis since leading a military coalition in support of Yemen's internationally recognised government in 2015. The war and the blockade imposed on Houthi-controlled territories have caused extensive destruction and contributed to one of the world's worst humanitarian crises.
The Houthis, who seized Yemen's capital Sanaa in 2014, have continued to consolidate their control over large parts of the country. Their military capabilities, including missiles and drones, have enabled them to threaten Saudi territory, energy infrastructure and shipping interests.
The latest compensation demand highlights the difficulties facing Saudi Arabia as it considers diplomatic options to contain the Houthi threat while protecting its security and economic interests. A settlement involving the demanded payment and formal political recognition would represent a significant shift in the kingdom's approach to the conflict.