The United Arab Emirates announced on Tuesday, December 30, that it would withdraw its remaining troops from Yemen after Saudi Arabia endorsed a demand for Emirati forces to leave within 24 hours, further intensifying tensions between the two Gulf states and major oil producers. Earlier the same day, aircraft from the Saudi-led coalition struck Yemen’s southern port of Mukalla. Riyadh said the attack targeted a weapons shipment linked to the UAE, marking the most serious escalation so far in the deepening dispute between the two regional allies.

The US State Department confirmed that Secretary of State Marco Rubio held talks with the foreign ministers of both Saudi Arabia and the UAE regarding developments in Yemen and broader Middle East security concerns. Several Gulf nations, including Kuwait and Bahrain, expressed support for diplomatic efforts and called for dialogue and a political settlement. Qatar stated that Saudi Arabia’s security and that of the wider Gulf region are inseparable from its own.

Once central partners in regional stability, Saudi Arabia and the UAE have increasingly diverged over issues such as oil production policy and geopolitical influence. The UAE defence ministry said it had voluntarily ended the deployment of its counterterrorism units in Yemen, its last remaining forces after formally concluding its military mission there in 2019. It noted that recent developments prompted a full review of its involvement.

Tensions have risen as Saudi Arabia accused the UAE of backing Yemen’s Southern Transitional Council (STC) and encouraging it to push toward Saudi borders, declaring such actions a threat to its national security. Although the UAE withdrawal may temporarily ease the standoff, uncertainty remains over whether Abu Dhabi will continue supporting the STC.

Saudi Arabia, meanwhile, has continued backing Yemen’s internationally recognised government and urged the UAE to halt all military and financial support for the separatists. The coalition said it had bombed a dock used to supply the STC, while Yemen’s Saudi-backed presidential council chief, Rashad al-Alimi, demanded that Emirati forces leave within 24 hours.

The UAE said it was surprised by the strike, denied the shipment contained weapons, and called for a resolution to prevent further escalation. However, the coalition insisted the cargo included arms and ammunition destined for areas in Hadramout. The dispute has also raised concerns within OPEC, as both countries play key roles in setting oil production policy. Ahead of an OPEC+ meeting this weekend, Gulf stock markets declined amid fears the conflict could complicate consensus.

The UAE had been part of the Saudi-led coalition since 2015 and began reducing its military presence in 2019. The STC later pushed for self-rule and recently launched a major offensive against Saudi-backed forces, gaining control over much of southern Yemen. Saudi officials said the Mukalla airstrike targeted a dock receiving shipments from the UAE port of Fujairah, including from a vessel identified as the Greenland. Saudi media reported no casualties from the strike, though sources confirmed the dock area was hit.

Disclaimer: This image is taken from Reuters.