Houthis want $51 billion from Saudi Arabia to stop attacks

If you fill up your car in Kuwait, fly out of Kuwait International, or just keep half an eye on the news from Riyadh, this story matters to you. Whatever happens next between Saudi Arabia and Yemen’s Houthi movement could shape oil prices, flight paths and security across the whole Gulf for years.

According to the Wall Street Journal, Yemen’s Iran-backed Houthi rebels have made an extraordinary demand to end the fighting: $51 billion in cash, plus recognition as Yemen’s legitimate rulers. The news comes as the region has already lived through months of attacks, as we’ve covered in pieces on why the Houthis are attacking Saudi Arabia and the US travel advisory for Saudi Arabia and the UAE.

How did we get here?

The talks reportedly started after Saudi Arabia reached out to the Houthis to see if the war could be wound down. Instead of a quick answer, the Houthis came back with a huge bill: $51 billion, which they say should cover the damage done by Saudi airstrikes and the blockade imposed during the conflict.

On top of the money, the group wants to be recognised as Yemen’s legitimate government. If Saudi Arabia agreed, it would mean living next door to a country run by a movement backed by Iran, right on its southern border.

This all comes while the fighting has actually been getting worse, not better. The Houthis have renewed attacks on Saudi oil tankers in the Red Sea and seized territory overlooking the Bab al-Mandeb Strait, one of the most important shipping routes on earth. Fighting picked up again over the summer, with strikes hitting Saudi oil facilities and airports, something we tracked in our report on the Saudi airport attacks in Abha and Riyadh.

The Houthis have also pushed further towards Aden, the city that serves as the seat of Yemen’s internationally recognised government. The WSJ reports Houthi forces are now about 50 miles from Aden, piling pressure on Saudi Arabia, which backs that government.

Why is Saudi Arabia in a tough spot?

Saudi Crown Prince Mohammed bin Salman reportedly does not want to sit down for full negotiations until Saudi forces have made military gains that would give Riyadh a stronger hand at the table.

The problem is that sending more Saudi ground troops into Yemen risks heavy casualties and could spark opposition back home, according to Saudi officials quoted by the WSJ. So far, Saudi Arabia has mostly relied on airstrikes to weaken the Houthis, but analysts aren’t convinced that air power alone can turn back the group’s advances on the ground.

There’s also a bigger worry than the $51 billion figure itself. Maged Al-Madhaji, co-founder of the Sana’a Center for Strategic Studies, told the WSJ that the real concern for Saudi Arabia is setting a precedent: that the Houthis could escalate attacks any time they want more money or more concessions.

Is Saudi Arabia getting help from anyone?

Riyadh has been looking for more security cooperation from regional partners as the attacks continue to threaten its territory and shipping lanes nearby. It has asked for help through its defence agreements with Turkiye and Pakistan, and Egypt has approved defensive military support, though not offensive operations.

Pakistan has so far resisted joining any offensive action inside Yemen itself, something our earlier report on Pakistani jets reportedly joining strikes on the Houthis looked at in more detail. The United States has also declined to provide direct military support against the group.

Adding to Riyadh’s problems, the United Arab Emirates, once a key partner in the Saudi-led campaign against the Houthis, pulled out of the coalition last December after disagreements with Saudi Arabia.

More international news affecting the Gulf is something we’re following closely as this story develops, because what happens in Yemen rarely stays confined there.

What does the Iran factor mean?

The Houthi movement’s ties to Iran add another layer of risk. Security analysts warn that if tensions between Washington and Tehran flare up again, Iran could increase its support for the Houthis and widen attacks across the region.

Saudi Arabia already has to defend its airspace against threats from Iran, Iraqi Shiite militias, and the Houthis all at once. That spreads its military resources thin, even before you add a $51 billion demand and a fight over who governs Yemen.

What this means for people in Kuwait

Kuwait sits close to this conflict, both geographically and economically. Any escalation that disrupts Red Sea shipping through the Bab al-Mandeb Strait can push up shipping costs and insurance, which eventually shows up in prices here too.

Oil markets watch Saudi Arabia’s stability closely, so a drawn-out standoff, or a sudden escalation, can move oil prices that affect government budgets across the Gulf, including Kuwait’s. We’ve already reported on moments of direct disruption, including the US evacuating diplomats and their families from Saudi Arabia and the coalition’s operation targeting Houthi missile and drone supplies.

For now, nothing has changed day to day for residents here. There’s no new travel ban, no new flight disruption announced, and no deal struck. But this is the kind of story worth watching, because a $51 billion gap between two sides rarely closes quietly.

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