Saudi Arabia has reportedly offered Yemen’s Iran-backed Houthi movement US$1 billion in an effort to secure a ceasefire and restore disrupted oil exports, according to a report published by the Israeli newspaper Israel Hayom, India Today reported.

The reported negotiations, which took place in Tehran, reportedly involved Saudi Defence Minister Prince Khalid bin Salman, Pakistan’s Army Chief Field Marshal Asim Munir, Turkish intelligence chief Ibrahim Kalin, and senior Iranian officials.

The talks were said to form part of a broader diplomatic initiative involving members of the recently established Mecca mutual defence pact and Iran, with the objective of reducing regional tensions and preventing further attacks on Saudi infrastructure.

According to diplomatic sources cited by the newspaper, Prince Khalid’s unexpected visit to Tehran was intended to secure an understanding with the Houthis through Iranian mediation. The report further claimed that the Saudi minister arrived carrying the proposed funds aboard a Hercules military transport aircraft, although it did not provide evidence that any transfer of money had actually taken place.

No official Saudi confirmation of any payment has been issued, and the report stops short of establishing that the alleged financial offer has been delivered. Nonetheless, the negotiations have drawn attention because of the involvement of senior representatives from Saudi Arabia, Pakistan, Turkey and Iran at a time of mounting instability across the Middle East.

The reported discussions come against the backdrop of renewed Houthi attacks on Saudi airports and oil facilities, which have caused economic disruption and heightened security concerns within the kingdom.

In addition, attacks attributed to Iran on vessels operating in and around the Strait of Hormuz have reportedly affected oil exports from the Gulf, placing further pressure on regional energy markets and international shipping routes.

Saudi Arabia has a significant interest in preventing further escalation, given the importance of energy exports to its economy and the vulnerability of key infrastructure to missile and drone attacks. The reported financial proposal is therefore being viewed as a possible attempt to employ economic incentives, combined with Iranian mediation, to secure a halt in hostilities.

Israel Hayom also reported that the negotiations are linked to understandings reached approximately three years ago, under which Riyadh was expected to provide financial assistance to territories under Houthi control as part of a wider settlement process.

Such assistance was reportedly intended to support the payment of public-sector salaries and fund the reconstruction of civilian infrastructure. In exchange, the Houthis were expected to maintain a ceasefire and refrain from carrying out attacks against Saudi targets. According to the report, the rebels have recently argued that Saudi Arabia failed to fulfil those commitments, which they have used to justify renewed military actions.

The newspaper further alleged that Iran has continued to arm and support the Houthis as part of its broader strategic confrontation with the United States, while simultaneously presenting itself as a mediator capable of influencing the group’s actions.

Pakistan’s participation in the talks places Islamabad at the centre of a delicate diplomatic effort involving both its regional partners and neighbouring Iran. Field Marshal Asim Munir’s reported involvement highlights Pakistan’s growing role in discussions concerning regional security, particularly following the signing of the Mecca mutual defence pact between Saudi Arabia, Pakistan and Turkey in August. The agreement envisages military assistance among member states in the event of an attack, although Pakistan and Turkey have thus far limited their support largely to military advisers rather than deploying additional forces.

The Iranian delegation reportedly included President Masoud Pezeshkian, Supreme National Security Council Secretary-General Mohsen Rezaei and senior figures from the Islamic Revolutionary Guard Corps. By facilitating discussions between Saudi Arabia and the Houthis, Tehran appears keen to demonstrate its continuing influence over regional security developments and its ability to shape outcomes in the Middle East.

For Iran, the meeting represented an opportunity to strengthen its diplomatic standing and advance its vision of a regional security framework led by Middle Eastern nations rather than external powers such as the United States or Israel. The talks were also notable because they marked the first reported official engagement between representatives of the Mecca defence alliance and Iran’s leadership.

Despite the dramatic claims surrounding the alleged US$1 billion proposal, important questions remain unanswered. Saudi Arabia’s publicly stated position has generally emphasised that it will not yield to what it describes as military coercion, and Riyadh has maintained that any transfer of funds should only occur within the framework of a broader political settlement that includes the return of territory seized from Yemen’s internationally recognised government.

As matters stand, the existence of a definitive $1 billion offer remains unconfirmed. While the visit to Tehran and the participation of senior Saudi, Pakistani and Turkish representatives have been reported by multiple outlets, neither the alleged payment nor a final ceasefire agreement has been independently verified.

The negotiations nevertheless underscore the increasingly complex diplomatic manoeuvring taking place as regional powers seek to prevent a wider conflict and safeguard both security and energy supplies across the Middle East.

Agencies