Saudi Arabia to Offer $1 Billion to Halt Houthi Attacks; Discussions Underway via Iran

New Delhi. Amidst the ongoing tensions between Saudi Arabia and the Houthi rebels in Yemen, reports have emerged regarding a potential $1 billion economic offer. Diplomatic sources in the Gulf region claim that Saudi Arabia may propose providing this sum—facilitated through Iran—in exchange for an end to Houthi attacks. It is reported that Saudi Defense Minister Prince Khalid bin Salman traveled to Iran to discuss a ceasefire. However, Saudi officials have neither confirmed this alleged payment nor provided any information regarding the transfer of funds.

These discussions come at a time when there are reports of Houthi rebels targeting Saudi Arabia’s oil facilities. According to reports, the Saudi Defense Minister’s visit to Iran is aimed at de-escalating regional tensions and exploring the possibility of a ceasefire with the Houthis.

Claims of channeling funds to the Houthis via Iran
According to diplomatic sources in the Gulf, the proposed agreement could see Saudi Arabia provide $1 billion to the Houthis through Iran. Sources claimed that the Saudi Defense Minister arrived in Tehran carrying these funds aboard a ‘Hercules’ military transport aircraft. However, this claim has not been independently verified, and Saudi officials have not confirmed any such financial transaction.

The report further states that Turkish intelligence chief Ibrahim Kalin and Pakistan’s Army Chief Asim Munir are also involved in these discussions. This visit follows developments related to the ‘Mecca Defense Agreement.’ According to reports, rather than deploying additional combat troops, Pakistan and Turkey have provided military advisors to Saudi Arabia. The agreement reportedly includes provisions for member nations to provide military assistance to one another in the event of an attack. Iran Offers Mediation
Iran has offered to mediate between Saudi Arabia and the Houthi rebels. According to an official statement from the Saudi Ministry of Foreign Affairs, the visit to Iran by Defense Minister Prince Khalid bin Salman—along with representatives from member nations of the Saudi-led military coalition—aims to reduce ongoing regional tensions.

However, Saudi officials have not clarified whether an agreement has been reached to provide any funds to the Houthis. Consequently, the reported offer of $1 billion remains, for now, merely a claim attributed to diplomatic sources.

Disputes Over Three-Year-Old Agreements
According to reports, part of the friction between the Houthis and Saudi Arabia stems from the implementation of agreements reached approximately three years ago. These agreements included provisions for direct financial assistance from Saudi Arabia to the Houthis. The funds were intended to pay salaries for government employees in Houthi-controlled territories and to support the reconstruction of public services and infrastructure. In exchange, the Houthis were expected to adhere to a ceasefire and cease attacks against Saudi Arabia.

In recent months, the Houthis have alleged that Saudi Arabia has reneged on these agreements. Reports also suggest that Iran continues to support the Houthis by supplying them with weapons and providing other forms of assistance. Nevertheless, independent verification is required to establish any link between these claims and current developments.

An Attempt to Restore Oil Exports?
The meeting in Tehran is also being viewed as a diplomatic challenge for Saudi Arabia. It is possible that Saudi Arabia might consider making certain concessions to fully restore its oil exports and mitigate the threat of attacks. However, there has been no official confirmation regarding the $1 billion offer, the mechanics of any such payment, or the terms of any potential agreement.

For the time being, the primary objective of these discussions is understood to be the reduction of regional tensions and the exploration of possibilities for a ceasefire. Future developments will depend on whether or not a concrete agreement is reached between Saudi Arabia, Iran, and the Houthi rebels.