Houthis seize strategic Yemeni city, escalating power struggle

(Reuters) - Houthi fighters opposed to Yemen's president took over the central city of Taiz in an escalation of a power struggle diplomats say risks drawing in neighboring oil giant Saudi Arabia and its main regional rival Iran.

Abdel-Malek al-Houthi, head of the powerful Shi'ite Muslim group, vowed to pursue Sunni militants behind suicide attacks on Houthi supporters and said the poor Arabian peninsula country was in danger of descending into Libya-style turmoil.

In a live televised speech, Abdel-Malek al-Houthi said his decision to mobilize fighters amid accelerating violence in recent days was aimed against Islamic State, which claimed responsibility for bombings that killed more than 130 in the capital Sanaa on Friday, and against al Qaeda.

Conflict has been spreading across Yemen since last year when the Houthis seized the capital Sanaa and effectively removed President Abd-Rabbu Mansour Hadi, who now seeks a comeback from his base in Aden.

Residents of Taiz, on a main road from the capital Sanaa to the country's second city of Aden, said that Houthi militias took over the city's military airport without a struggle from local authorities late on Saturday.

Eyewitnesses in the central province of Ibb reported seeing dozens of tanks and military vehicles headed southward from Houthi-controlled areas toward Taiz, while activists in the city said Houthi gunmen shot into the air to disperse protests by residents demonstrating against their presence.

The advance of the Iranian-backed group has angered Sunni Gulf Arab states led by Saudi Arabia.

The Houthi expansion into mostly Sunni areas in the center and west has led to months of clashes with local tribes and al Qaeda, raising fears that the heavily armed country might descend into civil war.

INTERVENTION

Iran on Sunday called for dialogue, but suggested that Hadi should leave to spare the country further bloodshed.

"The expectation is that President ... Hadi will resign rather than repeat mistakes, to play a constructive role in preventing the break-up of Yemen and the transformation of Aden into a terrorist haven," said Iran's deputy foreign minister Hossein Amir Abdollahian, according to state news agency IRNA.

But Gulf Arab leaders and security officials on Saturday said Hadi was Yemen's legitimate ruler and they were ready to make "all efforts" to defend the country's security.

"Yemen is sliding into a dark tunnel which would have serious consequences not only on Yemen but on security and stability in the region," the officials, who included Saudi Interior Minister Prince Mohammed bin Nayef, said.

"The security of Yemen and of the GCC countries is an indivisible whole," it added.

ESCALATING VIOLENCE

Yemen's struggle for power intensified on Thursday, when loyalists and opponents of Hadi fought gun battles in Aden.

On Sunday, anti-aircraft guns opened fire at an unidentified plane flying over Hadi's compound in Aden, witnesses said, in the third incident of its kind since last Thursday.

U.S. officials said Washington had evacuated its remaining personnel from Yemen, including around 100 special operations forces, because of worsening security, marking a setback in U.S. efforts against a powerful al Qaeda branch.

The Houthis are allied with former president Ali Abdullah Saleh, still influential in the military despite having given up power in 2011 after mass protests against his rule. The Yemeni army has varied loyalties, with most units being controlled by the Houthis or Saleh, while some are loyal to Hadi.

In his speech, Houthi criticized the U.N. Security Council, saying it was led by countries plotting "evil" against others.

Houthi did not elaborate. But diplomats in New York said the council would on Sunday condemn the takeover of much of Yemen and its institutions by the Shi'ite Muslim Houthis and warn of "further measures" if hostilities do not end.

Houthi also accused Saudi Arabia and Qatar - two among several Gulf Arab states opposed to the Houthis' rise to power -- of fomenting "destruction" inside and outside of the region.

He added that unidentified foes had encouraged militant violence and used political reform talks to buy time, something he said would eventually transfer "the Libyan example to Yemen ... This has become more apparent and clear than ever."