Saudi Defence Minister Prince Khalid bin Salman’s surprise visit to Tehran was aimed at securing a ceasefire with Yemen’s Houthi movement under a proposed arrangement involving a $1 billion transfer to the Iranian-backed group through Iran, according to diplomatic sources in the Gulf. One source claimed that Prince Khalid brought the money aboard the Hercules military transport aircraft on which he arrived, although a Saudi official did not confirm that any funds had been transferred.
The reported initiative comes as Houthi attacks on Saudi airports and oil facilities inflict economic damage on the kingdom, while Iranian attacks on tankers in the Strait of Hormuz disrupt oil exports from the Gulf. The Tehran meeting brings together representatives of Saudi Arabia and its regional defence partners with senior Iranian officials, placing Iran at the centre of efforts to address a crisis involving a movement it supports.
The visit was arranged by Saudi Arabia’s partners in the Mecca defence pact. Turkish intelligence chief Ibrahim Kalin and Pakistan’s army chief, Field Marshal Asim Munir, are also participating in the talks. Pakistan and Turkey have provided only military advisers, without additional support forces, despite an agreement that explicitly requires members to provide military assistance if one of them comes under attack. Their limited contribution has left Riyadh seeking a diplomatic route to contain the attacks and restore disrupted oil exports.
Iran was represented by President Masoud Pezeshkian, Supreme National Security Council Secretary General Mohsen Rezaei and senior officials from the Islamic Revolutionary Guard Corps. Tehran offered to mediate between Saudi Arabia and the Houthis over the Yemen crisis, giving the Iranian leadership a direct role in discussions concerning a movement it arms and supports.
The Saudi Foreign Ministry described the visit in diplomatic terms, saying: “The visit to Tehran by Prince Khalid bin Salman, the defense minister, and representatives of the member states of the Mecca Joint Defense Alliance comes as part of the alliance’s ongoing efforts to de-escalate tensions between the parties to the current crisis, encourage dialogue and diplomatic solutions, and support the mediation efforts undertaken by the State of Qatar and the Islamic Republic of Pakistan.”
The statement presented the meeting as part of broader efforts to reduce tensions and support mediation, without confirming the reported financial arrangement. A Saudi official who spoke to Israel Hayom also declined to confirm a transfer, but said part of the dispute with the Houthis concerned the implementation of understandings reached three years ago.
Under those understandings, Saudi Arabia was to provide direct financial assistance to the Houthis as part of efforts to reach a settlement. The proposed funding was intended, among other purposes, to pay public-sector salaries in areas under Houthi control and rebuild civilian infrastructure. In return, the Houthis were expected to maintain the ceasefire and stop attacks on Saudi Arabia.
In recent months, the Houthis have justified their attacks by accusing Riyadh of reneging on the understandings. The account presented by diplomatic sources, however, places the renewed violence within a wider confrontation involving Iran and the United States. Iran is described as being behind the current escalation as part of its war with Washington, providing the Houthis with weapons and other support.
The prospect of renewed financial assistance therefore carries implications beyond the immediate ceasefire negotiations. The meeting could signal Saudi Arabia’s willingness to make short-term concessions to restore oil exports fully, even as the kingdom maintains that it will not reward attacks on its territory. The reported $1 billion arrangement remains unconfirmed, leaving a distinction between the alleged proposal and Riyadh’s stated position.
Saudi Arabia’s official policy is that it categorically rejects a new ceasefire on terms imposed through military pressure and refuses to yield to what it calls “military blackmail”. Riyadh also maintains that it will not transfer funds to the Houthis before they return territory seized from Yemen’s internationally recognised government, which is backed by Saudi Arabia. That position conflicts with the reported effort to revive financial arrangements as part of a negotiated settlement.
For Tehran, the meeting represents a diplomatic gain. It is the first official meeting between representatives of the Mecca alliance and the Iranian leadership. The initiative emerged during Field Marshal Munir’s visit to Tehran the previous week, according to the account of the negotiations.
Iran is seeking to use the summit to advance a new regional security framework led by regional powers. Its approach emphasises preventing US or Israeli military intervention while presenting Tehran as a regional mediator capable of engaging parties involved in the conflict. By hosting Saudi and allied representatives, Iran has secured a direct diplomatic role in discussions over attacks that have damaged Saudi economic interests and disrupted maritime oil shipments.
The negotiations thus place several unresolved issues together: the future of the three-year-old understandings, the conditions under which Saudi Arabia might provide financial assistance, the Houthis’ continued attacks and the competing regional security ambitions of Riyadh and Tehran. The Saudi government’s public position remains that financial concessions cannot precede the return of territory seized from Yemen’s internationally recognised government, while the reported ceasefire initiative suggests that restoring oil exports is an immediate concern.
