Saudi Arabia's efforts to secure a peace deal with Houthi rebels in Yemen face challenges due to Houthi attacks on Israel and the recent seizure of the Israeli-linked vessel Galaxy Leader in the Red Sea. The situation has led to international pressure, particularly in London and Washington, to reconsider the designation of the Houthis as a terrorist organization, which could impact the peace negotiations.


There are reports suggesting that the US is considering military action against Houthi military sites in and around Yemen's capital, Sana'a, unless the seized ship is released. Saudi Arabia, seeking to end its military involvement in Yemen, presented a revised roadmap to the UN-recognized Yemeni government for the withdrawal of foreign forces, including those from Saudi Arabia, within six months. The proposed deal includes a budget arrangement to transfer funds from the oil-rich south to the impoverished north, dominated by the Iranian-backed Houthis.


However, critics argue that the deal empowers the Houthis, while Saudi Arabia aims to expedite its exit from the Yemeni conflict. The Saudis also plan to fund the payment of salaries to tens of thousands of unpaid government staff.


Houthi leaders, aligning themselves with Iran's allies and opposing Israel's actions in Gaza, have engaged in symbolic missile and drone displays. The recent hijacking of the Galaxy Leader further complicates the situation, as the Houthis threaten not only Israeli ships but also those protecting them in strategic waterways.


The US is considering options, including a review of potential terrorist designations for the Houthis, following the targeting of civilians and the piracy of the ship. The Houthi leader dismissed US claims of upholding international law, and there are discussions about potentially reactivating the Combined Maritime Forces to protect commercial ships in the Red Sea.


The conflict in Yemen originated in 2014 when the Houthis seized Sana'a, leading to Saudi intervention in 2015. Efforts to reach a peace deal face internal opposition, with parts of the Presidential Leadership Council opposing terms that allegedly do not retain enough funds in the country's south. The proposed deal includes unification of central banks and currencies, establishing a military buffer zone, and deferring discussions on a separate state for the south.


The Houthi rebels have claimed responsibility for launching long-range missiles toward Israel as part of a retaliation operation against Israeli actions in Gaza. The situation remains complex, with geopolitical implications and potential repercussions for the ongoing peace talks in Yemen.