Sanaa, Sep 9 (IANS/EFE): The leader of Yemen's Shia-oriented rebel Houthi group, Abdul-Malik al-Houthi, has threatened Yemeni authorities with further unrest if they do not respond to demands to resume fuel subsidies and to dismiss the government.

"If we find a great amount of intransigence and the rejection of the people's demands, we will resort to strategic and major options, but hopefully we will not have to," al-Houthi said late Monday in a televised speech broadcast on a satellite channel owned by his group.

He explained that those options are "major strategic matters, along with revolutionary escalation" which appeared to mean further unrest against the government.

The Houthi movement, which calls itself "Ansar Allah", has been leading mass protests in Yemen's capital Sanaa for more than three weeks in a bid to force the government to retreat from a decision taken in July to halt subsidies of fuel, and to step down.

Authorities reduced the prices of petrol and diesel last week, while Yemeni President Abed Rabbo Mansour Hadi pledged to form a new government within a week.

The movement, however, is demanding a complete resumption of the subsidies programme.

Al-Huthi criticised the president for counting on the support of the US in the showdown with the group which reportedly receives money and arms from Iran.

"I say to the authorities, if they bet on the American position, that is wrong. Israel bet on America and did not win over the Palestinian people."