Is Saudi Arabia buying peace? Report says Riyadh offers $1 billion to Houthis to seal Iran-brokered deal

Saudi Arabia has reportedly offered $1 billion to Yemen’s Houthis under an Iran-brokered proposal to halt attacks on the kingdom. The reported deal could fund public-sector salaries and reconstruction in Houthi-controlled areas.

Saudi Arabia has reportedly offered $1 billion to Yemen's Houthi rebels under a proposed arrangement brokered by Iran to secure a ceasefire and halt attacks on the kingdom, Israeli media outlet Israel Hayom reported, citing diplomatic sources in the Gulf.

The reported proposal comes amid efforts to contain regional tensions and prevent further attacks on Saudi territory, including oil infrastructure, airports and military installations.

According to the report, Saudi Defence Minister Prince Khalid bin Salman travelled to Tehran on Monday for talks with Iranian officials on a possible ceasefire with the Houthis, who are aligned with Iran.

The proposed arrangement reportedly involves transferring $1 billion to the group through Tehran.

One source cited by Israel Hayom claimed that the Saudi minister had brought the money aboard a C-130 military transport aircraft.

The alleged payment, the circumstances surrounding the minister's visit and the terms of the proposed agreement have not been independently verified. It also remains unclear whether the Houthis have accepted the proposal.

What does the reported $1 billion deal involve?

The reported financial package is intended to address issues, including unpaid public-sector salaries and the reconstruction of civilian infrastructure in areas under Houthi control in Yemen.

In return, the group would be expected to observe a ceasefire and stop attacks on Saudi territory, particularly against oil facilities, airports and military installations.

According to Israel Hayom, the proposal builds on earlier understandings under which Saudi Arabia would help finance public-sector salaries and reconstruction in Houthi-controlled areas in exchange for a cessation of hostilities.

The report said the Houthis had accused Riyadh of failing to honour previous commitments. The latest proposal is reportedly an attempt to revive those arrangements and secure an end to attacks.

Why is Iran mediating between Saudi Arabia and Houthis?

Iran's reported role in the negotiations reflects Tehran's involvement in diplomatic efforts to de-escalate the Yemen conflict. The Houthis have maintained close ties with Iran, which has faced accusations of providing the group with military support.

Tehran has sought to use its relationship with the Houthis to facilitate dialogue with Saudi Arabia, even as tensions persist across the wider Middle East.

On October 20, Iranian Foreign Minister Abbas Araghchi said Saudi Arabia and the Houthis had not responded to Tehran's offer to facilitate talks. The latest reported discussions could indicate renewed diplomatic activity, although it is unclear whether the parties have made progress towards a ceasefire.

Saudi Arabia has publicly described recent high-level talks in Tehran as part of broader efforts to reduce regional tensions and pursue diplomatic solutions.

The Saudi Foreign Ministry said Prince Khalid's visit, alongside representatives of partner countries, was intended to support de-escalation. The statement did not confirm the alleged $1 billion payment or the specific terms outlined in the Israeli media report.

What is at stake for Saudi Arabia?

For Riyadh, a ceasefire could reduce the threat to critical infrastructure, including oil facilities and airports.

Attacks on energy infrastructure are a particular concern for Saudi Arabia because of the importance of its oil sector to the domestic economy and global energy markets.

About the Author

Bhanu Pratap is a journalist who reports and writes on foreign affairs, India’s foreign policy, geopolitics and strategic affairs. He closely follows diplomatic developments in New Delhi and has a keen interest in defence and national security.<br> <br> Bhanu also focuses on in-depth, interview-based reports and regularly speaking with experts and policymakers to bring perspectives and context to major developments around the world.<br> <br> He is also interested in stories with strong humanitarian angles.<br><br> One such report examined the cases of Indian nationals who were allegedly recruited and forced into Russia’s war against Ukraine. While reporting the story, Bhanu spoke to the families of those affected and documented their experiences. The report was later taken into account by the United Nations in its findings on human rights violations linked to the war in Ukraine.<br> <br> For Bhanu, the zeal to produce meaningful and impactful journalism remains at the heart of his work.<br> <br>He has previously worked with Firstpost, NDTV, Newslaundry and Republic.<br><br> Bhanu studied at the Delhi School of Journalism, University of Delhi. He initially chose science with plans to pursue engineering, influenced by conventional expectations, but fate had other plans and eventually led him to journalism.<br><br> Beyond the newsroom, Bhanu enjoys exploring culture and history and often spends his days off on heritage walks. He is also passionate about travelling, biking and listening to folk music.<br> <br>For tips, reviews and suggestions, you can reach him at bhanu.pratap@htdigital.in.