Houthis put a price on peace with Saudi: $51 billion and recognition as Yemen's rulers - Report

Saudi Arabia has reached out to Yemen's Houthi movement to ask what it would take to end the escalating war, The Wall Street Journal reported on Thursday (Nov 5). The Houthi group has demanded roughly $51 billion and recognition as Yemen's legitimate government in lieu of peace.

The Houthis, as per the report, have framed the money as fair war reparations for years of Saudi-led airstrikes and a prolonged blockade, according to people familiar with the discussions. Other figures have since been floated, but any settlement would still run into the tens of billions of dollars.

Why Riyadh made the approach

The outreach followed a sharp escalation on two fronts. The Houthis intensified attacks on Saudi oil tankers in the Red Sea and seized strategic territory overlooking the Bab el-Mandeb Strait, the narrow passage connecting the Red Sea to the Gulf of Aden. Saudi oil facilities and airports have been hit regularly, and the group now controls much of the maritime traffic passing through the Red Sea.

A demand that would redraw Yemen's politics

Recognising the Houthis as Yemen's rulers would carry consequences far beyond the money. It would effectively legitimise a movement Saudi Arabia has fought for more than a decade, hand it formal standing, and weaken the internationally recognised Yemeni government the kingdom has backed. Recent Houthi advances have brought the group closer to Aden, the interim seat of that government.

Riyadh's narrowing options

Crown Prince Mohammed bin Salman is reportedly reluctant to enter a comprehensive agreement without stronger military leverage against the Houthis. Sending additional Saudi forces into Yemen risks heavy casualties and domestic criticism. Regional support is thin: the United Arab Emirates has withdrawn from the anti-Houthi campaign, Pakistan has rejected reports it would take part in offensive operations inside Yemen, and the United States has declined direct military involvement.

The Houthis' relationship with Iran adds another dimension. Reuters reported in October that Iranian support, including intelligence and targeting assistance, had helped the group carry out more sophisticated attacks against Saudi Arabia.

What comes next

No final agreement has been announced. The reported demands remain part of ongoing negotiations and have not been accepted by Saudi Arabia.