Saudis Give In to Houthi Pressure, Force CBY-Aden to Back Down

The UN Special Envoy’s Office (OSESGY) has now announced that the government and the Houthis have agreed to de-escalatory measures, including the repeal of banking and financial sanctions, and to forgo similar actions in the future. [...] In particular, the central bank hoped to broaden the financial dispute to negotiate the resumption of oil and gas exports - once the government’s primary source of revenue. [...] The involvement of the OSESGY highlights a vital aspect of the crisis, which should not be lost in the political brinksmanship: the economic and financial division of the country will have serious and potentially devastating costs. [...] The unraveling of the central bank’s gambit speaks directly to the lie at the heart of Saudi interference. [...] Unless and until the Saudis, the UAE, or the international community can summon the resolve to condition Houthi behavior or incentivize the group’s commitment to a negotiated political settlement, we should expect the fighting to go on, and for the Houthis to keep winning.