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Yemen: PLC Open to Economic Talks, Houthis Reject UN Envoy’s Call for Dialogue

A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)
A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)
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Yemen: PLC Open to Economic Talks, Houthis Reject UN Envoy’s Call for Dialogue

A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)
A meeting of the Yemeni Presidential Leadership Council (PLC) (Saba News Agency)

The Yemeni Presidential Leadership Council (PLC) has shown flexibility in response to a request from UN envoy Hans Grundberg to stop the Central Bank in Aden from taking action against Houthi-controlled banks and to start an economic dialogue.

This has caused widespread anger among government supporters.

The Houthis, however, rejected the UN envoy’s call for dialogue on economic issues, especially concerning banks whose licenses were revoked. Grundberg defended his request by highlighting the humanitarian impact and the fear of renewed conflict.

Mayy El Sheikh, Chief of the Strategic Communications and Public Information Office at the UN envoy’s office in Yemen, told Asharq Al-Awsat that Grundberg has renewed his call for the Yemeni government and the Houthis to meet under UN supervision to discuss economic issues, including the banking sector.

El Sheikh noted that Grundberg informed the UN Security Council in June about his efforts to facilitate direct talks between the Yemeni government and the Houthis.

She added that Grundberg’s office “remains committed to pushing for dialogue, believing that sincere, unconditional talks are the best way to address economic issues and prioritize the interests of Yemenis.”

Grundberg recently sent a letter to PLC head Rashad al-Alimi urgently requesting a halt or delay until the end of August on the Central Bank of Yemen’s decision to revoke the licenses of six banks in Houthi-controlled areas and suspend their access to the SWIFT system.

In his letter, Grundberg acknowledged the long-standing economic hardships faced by the Yemeni government, especially the halt in crude oil exports. He warned that the Central Bank's recent actions against the banks would harm Yemen's economy, worsen living conditions for ordinary Yemenis, and risk escalating military tensions.

Meanwhile, the Houthis rejected the call for dialogue. Hussein al-Ezzi, their Deputy Foreign Minister, stated on X that his group had informed Grundberg of their “outright rejection” of the proposed talks.

“There will be no negotiations except on the agreed-upon roadmap,” al-Ezzi added.

Despite the PLC’s support for economic reforms and the Central Bank’s actions in Aden, it has shown flexibility towards the UN request, demanding a clear agenda for any economic dialogue.

This includes resuming oil exports, unifying the national currency, and ending arbitrary measures against the banking sector.

In response to Houthi threats of military escalation, the PLC warned the Iran-aligned group against full-scale war and confirmed the readiness of all military units to counter any aggression.

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Arab World

Kyiv Denies Deploying Thousands of Drones in Iraq

Police officers in Iraq's Anbar inspect projectiles and drones seized in the governorate. (Security media)
Police officers in Iraq's Anbar inspect projectiles and drones seized in the governorate. (Security media)
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Kyiv Denies Deploying Thousands of Drones in Iraq

Police officers in Iraq's Anbar inspect projectiles and drones seized in the governorate. (Security media)
Police officers in Iraq's Anbar inspect projectiles and drones seized in the governorate. (Security media)

The Ukrainian Embassy in Iraq denied what it described as Iranian “allegations” that Kyiv had deployed thousands of drones in Iraq.

The tension between Tehran and Kyiv is primarily linked to the military support, specifically drones, that Iran has provided to Russia in its war against Ukraine, alongside Kyiv's alliance with the United States and Western nations.

The tension has manifested in accusations by Tehran and its allies in Iraq against Ukraine.

Kyiv's stance came via a statement from its embassy in Baghdad responding to reports published by the Iranian Tasnim news agency, which alleged that Ukraine had deployed drone units and thousands of drones in the Kurdistan Region of Iraq.

The embassy stressed that these allegations are completely baseless and are deliberate disinformation, noting that Kyiv has not deployed any drones, drone units, or associated personnel in either the Kurdistan Region or anywhere else in Iraq.

The statement noted that Ukraine fully respects the sovereignty and territorial integrity of Iraq, and deeply values the friendly relations that bind it to the Iraqi government and the Kurdistan Region Government.

On Tuesday, the Tasnim news agency, which is affiliated with the Iranian Revolutionary Guard Corps, cited a security source claiming that Ukraine had deployed specialized drone forces in areas surrounding Iran, and that “this move is part of the hostile actions by Europe and the NATO alliance against Tehran.”

Tasnim cited a security source alleging that Ukraine “has deployed specialized drone forces in areas surrounding Iran, particularly the Kurdistan Region, and that information regarding the countries hosting the Ukrainian forces and drones is confidential and will be revealed later.”

Iraq’s National Security Advisor Qasim al-Araji had announced last July the arrest of a number of cells and operatives who confessed to working for Ukraine and to their involvement in carrying out attacks against government installations and facilities inside Iraqi territory.

The issue caused major uproar at the time, and many said it was aimed at diverting attention from the attacks carried out by pro-Iranian armed factions inside and outside Iraq.

The Ukrainian Ministry of Foreign Affairs at the time issued a strongly worded response to Araji's statements, deeming them "irresponsible and baseless."

Tehran is carrying out intense security efforts in Iraq possibly tied to preparations to the renewal of the war with the US.

Several security delegations have arrived in Baghdad in recent days to discuss numerous security issues, including securing the borders between the two countries.

Arab World

Houthis Attack Yemen's Aden Airport with Ballistic Missile

A truck loaded with firewood drives through the Al-Basateen neighborhood in Aden, Yemen, Tuesday, Oct. 13, 2026. (AP)
A truck loaded with firewood drives through the Al-Basateen neighborhood in Aden, Yemen, Tuesday, Oct. 13, 2026. (AP)
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Houthis Attack Yemen's Aden Airport with Ballistic Missile

A truck loaded with firewood drives through the Al-Basateen neighborhood in Aden, Yemen, Tuesday, Oct. 13, 2026. (AP)
A truck loaded with firewood drives through the Al-Basateen neighborhood in Aden, Yemen, Tuesday, Oct. 13, 2026. (AP)

The Houthi group renewed its attacks on Aden International Airport with a ballistic missile on Wednesday, amid intensifying battles on the Taiz fronts.

Elsewhere, the Yemeni Armed Forces continue to deplete the personnel and equipment capabilities of the Iranian-backed group under Operation Dawn of Yemen across various fronts, most notably in Taiz and western Lahj.

Meanwhile, the humanitarian crisis in Taiz Governorate is worsening as the Houthis continue to block supply routes amid escalating clashes around the provincial capital, which is home to more than 600,000 civilians.

UN agencies have warned of severe repercussions threatening nearly three million people in the governorate, particularly children, women, and displaced persons, driven by declining food, water, and fuel supplies, and mounting pressure on healthcare facilities and basic services.

Families are rationing drinking water as diesel shortages hobble pumping stations and sanitation systems, said Akhil Iyer, UNICEF's representative in Yemen.

Water ‌production in Taiz has fallen by about 50%, according to Save the Children.

“We find children in an ‌extremely dangerous situation where they are not able to have their basic needs satisfied. They are not able to access sufficient food and water and healthcare,” said Rishana Haniffa, Save the Children's country director for Yemen.

Arab World

Water Rationing, Rubbish Pile-up Raise Disease Fears in Yemen’s Besieged Taiz

A woman and children wait to fill jerrycans with drinking water from a charity tank in the southwestern city of Taiz, Yemen, October 20, 2026. (Reuters)
A woman and children wait to fill jerrycans with drinking water from a charity tank in the southwestern city of Taiz, Yemen, October 20, 2026. (Reuters)
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Water Rationing, Rubbish Pile-up Raise Disease Fears in Yemen’s Besieged Taiz

A woman and children wait to fill jerrycans with drinking water from a charity tank in the southwestern city of Taiz, Yemen, October 20, 2026. (Reuters)
A woman and children wait to fill jerrycans with drinking water from a charity tank in the southwestern city of Taiz, Yemen, October 20, 2026. (Reuters)

Families have started rationing water in and around Yemen's Taiz city, where renewed fighting has disrupted fuel supplies and access to water systems serving 3 million people, aid groups and UN agencies said.

Meanwhile, mounting piles of rubbish along major roads are raising fears of disease outbreaks in the city, Yemen's third-largest.

Fighting between the legitimate government and the Iran-allied terrorist Houthi militia since September has cut key supply routes, including the Taiz-Aden corridor, worsening shortages of water, food and fuel in and around the city.

The lack of fuel is hampering the operation of water pumps and hospitals, while disruption to waste collection has left rubbish piled along roads of the city, a stronghold of anti-Houthi forces which is now under siege by the militants.

The Taiz governorate hosts nearly half of the ‌250,000 people displaced by ‌the latest escalation, aid groups said.

"The state of the rubbish in the ‌city ⁠is very wretched, ⁠and the build-up is terrible, like nothing before,” Taiz resident Abdelbari al-Qadi told Reuters.

Sanitation worker Ali Ahmed said authorities could no longer go to the main dumping site because of clashes, and they were forced to burn it in the streets.

People inspect damage at a house hit by a Houthi missile in the southwestern city of Taiz, Yemen October 21, 2026. (Reuters)

'EXTREMELY DANGEROUS SITUATION' FOR CHILDREN, SAYS RELIEF OFFICIAL

Families are rationing drinking water as diesel shortages hobble pumping stations and sanitation systems, said Akhil Iyer, UNICEF's representative in Yemen.

"I get the water with difficulty. We wait in queues from the morning until our turn comes,” Alaa Khalil told Reuters while people queued to fill jerry cans in Taiz, where most ⁠residents depend on trucked water.

Access to the Al-Dhubab aquifer, a major source of ‌trucked water for Taiz, has been restricted, while fuel disruptions have affected ‌pumps, creating a severe water crisis, said Wathiq Aghbari, director general of the Local Water and Sanitation Authority in the governorate.

Water ‌production in Taiz has fallen by about 50%, according to Save the Children.

“We find children in an ‌extremely dangerous situation where they are not able to have their basic needs satisfied. They are not able to access sufficient food and water and healthcare,” said Rishana Haniffa, Save the Children's country director for Yemen.

Aid groups are exploring other sources, including a shallow aquifer west of the city. The cost of a water truck has tripled from about 23,000 Yemeni rials ($14.80) before ‌the latest escalation to about 70,000 rials ($45), according to UNICEF.

CARE International says cash assistance is buying less food and water as prices rise.

“We feel the situation is ⁠really getting out of ⁠hand unless we able to negotiate access to have water tankers come in to the city,” said Iman Abdullahi, CARE Yemen country director.

A pile of garbage on a street in the southwestern city of Taiz, Yemen, October 19, 2026. Picture taken with a mobile phone. (Reuters)

RUBBISH BUILD-UP 'WILL CAUSE DISEASES', SAYS HEALTH OFFICIAL

"The build-up of rubbish is very harmful and will cause diseases, whether respiratory or otherwise," said Abdulrahman al-Sabri, director of Taiz Governorate's Health Office, adding that dengue fever and cholera cases were spreading.

Cholera cases have tripled since early September from 221 to 683 this month, while hospitals face medicine shortages and 12 facilities have fuel supplies sufficient for only about four days, the World Health Organization said.

A doctor who asked not to be named for security reasons said some families could not reach healthcare facilities because of fighting around the city.

The Danish Refugee Council said the impact of deteriorating water and sanitation conditions could spread beyond Taiz city. It pointed to overstretched resources in crowded displacement sites across the governorates of Taiz, Lahj, Abyan and Aden.

The spread of disease could also worsen hunger in Taiz governorate, UNICEF said. It has identified 52,000 acutely malnourished children in Taiz so far this year. Road closures have halted UNICEF's deliveries of a therapeutic food for severely malnourished children in Taiz.