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.



Israel Pressures Lebanon with US Cover

UNIFIL vehicles conduct a military patrol in a border area between Lebanon and Israel (DPA). 
UNIFIL vehicles conduct a military patrol in a border area between Lebanon and Israel (DPA). 
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Israel Pressures Lebanon with US Cover

UNIFIL vehicles conduct a military patrol in a border area between Lebanon and Israel (DPA). 
UNIFIL vehicles conduct a military patrol in a border area between Lebanon and Israel (DPA). 

Lebanese sources question the United States’ absence from Lebanon’s political and diplomatic scene, arguing that this has allowed Israel to escalate its violations of the ceasefire agreement.

They say that this disengagement has freed Israel’s hand to assassinate Hezbollah figures—most recently Hassan Badr—and conduct airstrikes on towns north of the Litani River.

The situation has been further complicated by the US-driven suspension of the international monitoring committee overseeing the ceasefire. This is tied to Lebanon’s reluctance to form three committees requested by US envoy Morgan Ortagus, addressing Lebanese prisoners in Israel, the Israeli withdrawal from occupied points, and border demarcation, including 13 disputed areas.

The political circles in Lebanon now anticipate Ortagus’ visit, during which she will meet key officials, including President Joseph Aoun and Prime Minister Nawaf Salam.

Israel, emboldened by US support, continues military pressure on Lebanon, raising concerns that it seeks to enforce UN Resolution 1701 through force to push Lebanon into negotiations that could lead to normalization.

There is speculation that Israel aims to trade normalization for a demilitarized zone extending beyond South Lebanon to include areas north of the Litani River, eliminating Hezbollah’s military presence there. However, Aoun has emphasized Lebanon’s defense strategy, which aims to ensure the state’s exclusive control over weapons across the entire country.

Sources suggest Hezbollah must adopt a pragmatic approach and support Lebanon’s diplomatic push rather than relying on military rhetoric. However, in a recent speech, Hezbollah’s Secretary-General Naim Qassem reaffirmed the group’s commitment to resistance and warned of open-ended options if diplomacy fails. This stance appears contradictory, as Hezbollah has recently shifted toward diplomatic engagement, especially given Israel’s current advantage in deterrence and rules of engagement.

In contrast, Aoun and Salam have actively pushed for US intervention to enforce Israel’s withdrawal and implement Resolution 1701.

Israel’s occupation of several points has blocked the Lebanese Army’s deployment alongside UNIFIL to the international border. Blaming Lebanon for failing to comply with international resolutions is unfair when Israel continues its violations. The international monitoring committee has even praised the Lebanese Army’s efforts in implementing the ceasefire agreement.

Lebanese sources reject claims that Washington blames Aoun and Salam for not adhering to their commitments. They argue that Israel’s violations are the primary issue, not Lebanon’s policies.

Salam’s position on ending non-state weapons and moving beyond the “army, people, and resistance” formula was welcomed by Washington but rejected by Hezbollah, which continues to use the rhetoric for political mobilization.

Sources stress that Aoun’s refusal to negotiate normalization with Israel aligns with Lebanon’s political consensus. During his visit to Paris, he emphasized that border talks should follow the same diplomatic protocols used in previous maritime negotiations.

Meanwhile, intelligence reports suggest that Hezbollah was not involved in the recent rocket attacks on Israel, reinforcing Speaker Nabih Berri’s statement that these incidents may have been orchestrated by Israel for strategic purposes.

Security agencies are close to uncovering the truth, with Lebanese and Palestinian suspects under investigation.