Saudi Arabia seeks Iran’s help to end Houthi attacks amid $1 billion deal report

New Delhi: A reported $1 billion offer to Yemen’s Houthi rebels has emerged as a key point of interest in Saudi defence minister, Prince Khalid bin Salman, visit to Tehran, where Iran has offered to mediate in the Yemen conflict. The alleged proposal comes amid renewed Houthi attacks on Saudi targets and efforts to revive a ceasefire.

Israeli newspaper Israel Hayom, citing diplomatic sources in the Gulf, reported that bin Salman travelled to Tehran on Monday to discuss the arrangement. One source claimed the money was brought aboard the Hercules military transport aircraft used for the visit. Saudi Arabia has not confirmed the alleged offer or any transfer.

In a statement carried by the Saudi Press Agency, the Saudi foreign ministry said the visit aimed to ease tensions and promote a diplomatic settlement. Representatives of countries participating in the Makkah Joint Defence Agreement also attended the talks. Riyadh backed mediation efforts by Qatar and Pakistan and called for negotiations to prevent further military escalation. The statement made no mention of a financial deal.

The reported offer is linked to understandings reached around three years ago. Under those arrangements, Saudi Arabia was expected to fund public-sector salaries and civilian infrastructure in Houthi-controlled areas. In return, the Houthis were expected to maintain a ceasefire and halt attacks on the kingdom.

A Saudi official told Israel Hayom that implementing these understandings remains a point of dispute. The Houthis have reportedly accused Riyadh of failing to honour its commitments and cited this as a reason for renewed attacks.

Revisiting the financial arrangements could help Saudi Arabia reduce hostilities and protect its oil infrastructure. However, Riyadh opposes making concessions under military pressure. Its stated position links any payment to the return of territory seized by the Houthis from Yemen’s internationally recognized government.

Iran’s diplomatic role

The Tehran meeting brought Saudi Arabia’s defence partners into direct talks with Iranian leaders. According to reports, Iran was represented by president, Masoud Pezeshkian; supreme national security council secretary general, Mohsen Rezaei; and senior Islamic Revolutionary Guard Corps officials.

The Turkish intelligence chief, Ibrahim Kalin, and the Pakistani army chief, Field Marshal Asim Munir, also participated, according to reports. The meeting was arranged with the involvement of Saudi Arabia’s partners in the Makkah defence pact. The initiative followed Munir’s visit to Tehran the previous week.

The report also alleged that Pakistan and Turkey had provided limited military assistance to Saudi Arabia, mainly through advisers rather than additional forces.

For Tehran, the talks offer an opportunity to strengthen its position as a regional mediator and promote a security framework led by regional powers. The diplomatic push comes amid wider regional hostilities and disruptions to tanker movements through the Strait of Hormuz.