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Yemen’s Iran-backed Houthi movement has demanded $51 billion from Saudi Arabia as financial compensation for years of airstrikes and blockades, alongside formal political recognition as the legitimate rulers of Yemen. The stunning demands came to light as the Saudi-led anti-Houthi coalition announced it successfully intercepted a ballistic missile fired by the militant group toward the Medina region, home to Islam’s second-holiest city. Analysts note that accepting the terms would represent a massive strategic defeat and a dangerous precedent for Saudi Arabia The diplomatic extortion follows a fresh Houthi military offensive that has pushed forces closer to Aden Given the severity of the financial and political conditions, regional observers consider the demands entirely unviable for Riyadh, compounding a complex military crisis that continues to draw in regional actors like Turkey and Egypt.the seat of Yemen’s internationally recognized government while ongoing drone and missile attacks target Saudi oil facilities and Red Sea shipping.effectively forcing Riyadh to recognize an Iran-backed armed movement on its southern border.