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Conflict Report: Saudi-Yemeni Escalation (December 2025)

Yemen Crisis: The Negotiation Table

The Yemen Standoff

Status Report: December 28, 2025

Location Focus: Hadramout & Al-Mahra Oil Fields

Riyadh's Red Lines

Saudi Defense Minister Khalid bin Salman has characterized the STC's recent gains as an "unjustified escalation." Riyadh's core objective is to prevent the total economic collapse of the Presidential Leadership Council (PLC).

The Territorial Leverage

Why the STC is refusing to withdraw: They now control the "Economic Engine" of Yemen.

Oil Field Status Control
PetroMasila (Hadramout) STC OCCUPIED
Balhaf Gas Terminal STC BLOCKADED
Saudi Military Posture

Riyadh has deployed the National Shield Forces (Deraa al-Watan) to the border. These units are specifically trained to replace STC militias in captured camps, should a withdrawal occur.

STC Strategic Counter

The STC has warned that any attempt to forcibly remove them from the oil fields will result in the "Total destruction of production infrastructure," a scorched-earth threat meant to deter Saudi airstrikes.

Conflict Point Saudi Demand Yemen (STC) Position
Military Camps Immediate handover to National Shield Only Hadhrami Elite Forces allowed
Oil Revenue Remit to Central Bank (Aden) Establishment of Southern Sovereign Fund
Governance Restore PLC-appointed Governors Self-rule under STC Local Councils

Strategic Assessment: Dec 2025

The current standoff is not just a territorial dispute but a battle for the economic survival of the Yemeni state. Without a compromise on oil revenue sharing, the fracture between Riyadh and the South may become permanent.

Source: Al Jazeera Source: Reuters Source: GKTODAY Analysis

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