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Fight for control of Yemen's banks between rebels, government threatens to further wreck economy

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Fight for control of Yemen's banks between rebels, government threatens to further wreck economy

SANAA, Yemen (AP) — Yemen’s Houthi rebels and its internationally recognized government are locked in a fight for control of the country’s banks that experts warn is threatening to further wreck an economy already crippled by nearly a decade of war.

The rivalry over the banks is throwing Yemen’s financial system into deeper turmoil. Already, the Houthis who control the north and center of the country and the government running the south use different currency notes with different exchange rates. They also run rival central banks.

The escalating money divide is eroding the value of Yemen’s currency, the riyal, which had driven up prices for clothing and meat before the Islamic holiday of Eid al-Adha started on Sunday.

For weeks, Yemenis in Houthi-controlled areas have been unable to pull their money out of bank savings accounts, reportedly because the Houthi-run central bank, based in the capital, Sanaa, has stopped providing liquidity to commercial and government banks. Protests have broken out in front of some banks, dispersed by security forces.

Yemen has been torn by civil war ever since the Iranian-backed Houthi rebels took over Sanaa and much of Yemen’s north and center in 2015. The Saudi-backed internationally recognized government and its nominal ally the Southern Transitional Council, a group supported by the United Arab Emirates, govern the south and much of the east, centered in the southern port city of Aden.

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Yemen was already the Arab world’s poorest country before the war began. Punitive actions by each side against the other’s banks over the past week now threaten to undermine merchants’ ability to import food and basic commodities and to disrupt the transfer of remittances from Yemenis abroad, on which many families depend, said Edem Wosornu, director of operations and advocacy for the U.N. humanitarian coordination office known as OCHA.

“All these factors will likely deepen poverty, worsen food insecurity and malnutrition, and increase reliance on humanitarian assistance,” she told a U.N. Security Council briefing on Thursday. The dispute could escalate to the point that banks in Houthi-run areas are barred completely from international financial transactions, which she said would have “catastrophic ramifications.”

The internationally recognized government moved the central bank to Aden in 2016, and since then began issuing new banknotes to replace worn-out riyals. Houthi authorities, which set up their own central bank in Sanaa, banned the use of the new money in areas under their control.

In March, the Houthi-controlled central bank announced it was rolling out its own new 100-riyal coins. The international community and Yemen’s recognized government denounced the move, saying the Houthis were trying to set up their own financial system and warning it will deepen Yemen’s economic divide.

Adding to the confusion, the bills have different exchange rates — riyals issued in Sanaa go for about 530 to the dollar, while those from Aden are around 1,800 to the dollar.

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In response, the Aden-based central bank gave banks 60 days to relocate their headquarters to the southern city and stop operating under Houthi policies, or else risk facing sanctions related to money laundering and anti-terrorism laws.

The central bank was “forced to make these decisions, especially after the Houthi group issued their own currency and took unilateral steps towards complete independence from the internationally recognized Central Bank in Aden,” said Mustafa Nasr, an economic expert and head of the Studies and Economic Media Center SEMC.

No banks met the deadline — either because they needed more time or because they feared Houthi sanctions if they moved, Nasr said.

When the deadline ran out last week, the central bank in Aden banned dealing with six banks headquartered in Sanaa, meaning currency exchange offices, money transfer agencies and banks in the south could no longer work with them.

In retaliation, the Houthi-run central bank in Sanaa banned all dealings with 13 banks headquartered in Aden. That means people in Houthi-controlled areas can’t deposit or withdraw funds through those banks or receive wire transfers made through them.

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Even as the fight for control is going on, both sides are facing a cash crunch. The Houthi government has few sources of foreign currency and its new coins aren’t recognized outside its territory.

In January, the United States designated the Houthis as a global terror group in response to the rebels’ attacks on shipping in the Red Sea and Arabian Sea. The Houthis say the attacks are in retaliation for the Israel-Hamas war in the Gaza Strip. Because of the U.S. decision, banks around the world might be concerned and reluctant to continue any financial dealings with banks that have headquarters under Houthi control, said Youssef Saeed, a University of Aden economic professor.

The economy in Aden isn’t significantly better. The government’s revenues have been hit hard ever since Houthi attacks on oil ports in late 2022 forced a halt in oil exports, the main earner of foreign currency.

Since March, depositors in Houthi-run areas have been unable to pull money out of their accounts. The central bank in Sanaa hasn’t announced any formal restrictions, but several economists told The Associated Press that it has informally stopped releasing funds that individual banks have put in its coffers — in part because of a lack of liquidity.

At one bank that saw protests by depositors last month, the International Bank of Yemen, a note hung in the lobby said, “In coordination with the Central Bank, withdrawals from old accounts have been suspended until further notice.”

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Um Ahmed, a 65-year-old woman who was among those protesting outside the bank, said that she was trying to withdraw money to help her son buy a motor scooter for work, but the bank refused.

“I served this country as a teacher for 35 years and saved every penny and deposited my money at the bank, but they took it all,” she said. “This money belongs to my husband and me and our children.”

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Fatma Khaled reported from Cairo.

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Jimmy Kimmel on Trump Firing Homeland Security Secretary Kristi Noem: ‘The Funniest Thing Would Be If They Deport Her to El Salvador’

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Jimmy Kimmel on Trump Firing Homeland Security Secretary Kristi Noem: ‘The Funniest Thing Would Be If They Deport Her to El Salvador’

After Donald Trump fired Secretary of Homeland Security Kristi Noem on Thursday, Jimmy Kimmel was having the last laugh. On Thursday night’s edition of “Jimmy Kimmel Live,” the late night host poked some fun at the embattled Noem, who was finally let go after several scandals.

That included her claim that Trump approved her $220 million border security advertising campaign that was seen as self-promotional; a multi-million-dollar jet fleet paid for by border funds; her relationship with top aide Corey Lewandowski; and how she falsely called Alex Pretti, the Minnesota man killed by ICE agents, was a “domestic terrorist.”

In his opening monologue, Kimmel pointed out that this felt like the latest installment of a Trump scripted TV show — and in this case, a “Game of Thrones” moment.

“Today – we had a red wedding on that TV show,” he said. “A shocking elimination on the ‘Celebrity Appresident,’ as Trump finally fired a member of his cabinet. It’s the first one of his second term.”

Kimmel noted that the now-former Secretary of Homeland Security was let go after “two disastrous hearings in the House and Senate” and was now, as Trump explained, “‘…moving to be Special Envoy for the Shield of the Americas, our new Security Initiative in the Western Hemisphere.’”

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What, exactly, is that? “I think I speak for all of us when I say, we wish Kristi luck in her brand-new, completely made-up job,” Kimmel quipped. “It’s interesting – Trump was said to be particularly unhappy with Noem’s testimony claiming that he signed off on a $220 million ad campaign that featured her in commercials wearing different outfits, rounding up immigrants and riding a horse.

“Trump claims he didn’t know anything about it. Even though we all knew everything about it. But you know him, he doesn’t watch much television.”

Kimmel knows that’s not true, and directly addressed him: “Hi, President Trump, how are ya!”

Kimmel also pointed out that not long before she got the boot, Noem and the DHS had been pushing back against criticism of those commericials, calling them “the most successful ad campaign in U.S. history.”

Asked the host: “Even more than ‘Where’s the Beef?’ More than ‘Whazzzzup!’? I don’t know – if that’s true, that’s very impressive. You know, the funniest thing would be if they deport her to El Salvador.”

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Kimmel then added that Trump’s replacement for Noem was Oklahoma senator Markwayne Mullin — a former MMA fighter and a plumber.

“According to White House staffers, Trump ‘loves watching him on TV,’” Kimmel said. “I agree. I love watching him on TV too… in the same way I loved watching Honey Boo Boo on TV.”

Also in the monologue, Kimmel noted that according to polls, a majority of Americans are not in favor of the war on Iran, and that “a majority of Americans think Trump is making the U.S. less safe. But that is according to a poll from those radical left-wing lunatics at Fox News.”

And he also noted that of the more than 47,000 documents “that mysteriously vanished from the government’s website, some of these missing files contain disturbing allegations against a person who for legal reasons I can’t say his name, but he’s currently the President.” Those missing files have finally been published — and include a transcript of the accuser’s interviews.

As Kimmel noted: “Can you imagine if the DOJ had been holding FBI interviews with a woman who claimed that Joe Biden sexually assaulted her when she was a young teenager? It would be rage boner-palooza at Fox News.”

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Watch the monologue here:

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Iranian vessel suffers engine failure, offloads crew days after US submarine sank other ship

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Iranian vessel suffers engine failure, offloads crew days after US submarine sank other ship

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An Iranian ship offloaded more than 200 members of its crew to Sri Lanka on Friday after suffering an engine failure at sea, just days after a U.S. submarine sank an Iranian warship in an Indian Ocean torpedo attack. 

The IRIS Bushehr, described in previous Iranian media reports as a navy logistics ship, is being brought first to the port of Colombo, according to Sri Lanka navy spokesman Cmdr. Buddhika Sampath. Sailors are being taken to a naval base in Welisara following medical exams and immigration procedures. 

“We have to understand that this is not an ordinary situation,” Sri Lankan President Anura Kumara Dissanayake said Thursday. “It’s a request by a ship belonging to one party to enter into our port. We have to consider that according to the international treaties and conventions.” 

Dissanayake added that authorities decided to take control of the IRIS Bushehr following discussions with Iranian officials and the ship’s captain, after one of its engines failed. He said some crew members would remain on board to help the Sri Lankan navy later navigate the vessel to Trincomalee on the island’s northeast coast, about 165 miles from Colombo.

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Iranian navy personnel stand aboard the IRIS Bushehr in Port Sudan, Sudan, in December 2012. The ship ran into engine problems on March 6, 2026, and is being taken to Sri Lanka, reports said. (STR/AFP via Getty Images)

The moves come after the U.S. sank the Iranian warship IRIS Dena off Sri Lanka’s coast on Wednesday.  

Secretary of War Pete Hegseth said it was “the first sinking of an enemy ship by a torpedo since World War II.” 

The Indian navy said Thursday that it had initiated search and rescue operations after receiving a distress signal from the Dena, deploying two aircraft along with a sailing training vessel. By the time the response was launched, the Sri Lankan navy had already started its own rescue efforts, it said.

The Sri Lankan navy rescued 32 sailors and recovered 87 bodies after the attack, according to The Associated Press. 

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Iranian Foreign Minister Abbas Araqchi said Thursday that the U.S. will “bitterly regret” striking and sinking that ship. 

“The U.S. has perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores,” Araqchi wrote on X. “Frigate Dena, a guest of India’s Navy carrying almost 130 sailors, was struck in international waters without warning.”

US ‘WINNING DECISIVELY’ AGAINST IRAN, WILL ACHIEVE ‘COMPLETE CONTROL’ OF AIRSPACE WITHIN DAYS, HEGSETH SAYS

A U.S. submarine sunk an Iranian warship in international waters in the Indian Ocean, War Secretary Pete Hegseth confirmed Wednesday. (@DeptofWar/X)

“Mark my words: The U.S. will come to bitterly regret precedent it has set,” he added. 

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Joint Chiefs of Staff Gen. Dan Caine told reporters at the Pentagon on Wednesday that the Iranian vessel was “effectively neutralized” in a Navy “fast attack” using a single Mark 48 torpedo.

Two Iranian sailors, center, who were rescued from the IRIS Dena warship by Sri Lanka’s navy, are seen in Galle, Sri Lanka, on Thursday, March 5, 2026. (Eranga Jayawardena/AP)

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He added that the U.S. Navy achieved “immediate effect, sending the warship to the bottom of the sea.” 

Fox News’ Stephen Sorace, Landon Mion and The Associated Press contributed to this report. 

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‘No deal with Iran except unconditional surrender,’ Trump says

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‘No deal with Iran except unconditional surrender,’ Trump says

US president stakes out maximalist war aims as conflict wreaks havoc across the region amid rising death toll.

Donald Trump has stressed that any deal with Iran must result in the country’s “unconditional surrender”, setting maximalist war objectives for the United States.

The US president’s remarks on his Truth Social platform on Friday appear to reject the prospect of a compromise amid Iranian confirmation of diplomatic mediation to end the conflict.

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“There will be no deal with Iran except UNCONDITIONAL SURRENDER!” Trump wrote.

“After that, and the selection of a GREAT & ACCEPTABLE Leader(s), we, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before.”

Iranian President Masoud Pezeshkian had said earlier that some countries are engaging in mediation efforts to end the war, stressing that Iran is committed to peace in the region but prepared to defend itself.

“Mediation should address those who underestimated the Iranian people and ignited this conflict,” Pezeshkian said in a social media statement.

The conflict has spread across the Middle East, igniting Iranian attacks across the Gulf and a war between Hezbollah and Israel, resulting in a mass displacement crisis in Lebanon.

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Iran has been launching missiles and drones at Israel and US interests and assets across the region. Iranian forces have also targeted energy and civilian infrastructure in Gulf countries, straining ties with the Arab world.

The violence, which saw Iran largely succeed in closing down the Strait of Hormuz, has sent oil prices soaring globally.

Iranian officials have expressed defiance since the start of the war, stressing that they are ready for a long conflict and prepared to fend off a US ground invasion should it occur.

Iran’s Foreign Minister Abbas Araghchi said in a message to Trump on Thursday that the US plan for a “clean rapid military victory failed”.

“Your Plan B will be even bigger failure,” Araghchi wrote on X.

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On Friday, Iran’s top diplomat posted a photo of the coffins of a mother and child, the apparent victims of US-Israeli attacks. “Our Brave and Powerful Armed Forces will avenge each and every Iranian mother, father, and child who has been targeted by hostile forces,” Araghchi wrote.

The war has killed at least 1,332 people in Iran, among them 181 children, according to UNICEF.

The deadliest incident was a strike on a girls’ primary school in the southern city of Minab on the opening day of the conflict, which Iranian authorities said killed about 180 pupils and staff.

The Trump administration has pushed to project confidence and dominance over Iran, with top officials saying that the US would “rain missiles”, “death and destruction” on the country.

In recent days, Trump has stressed that he would like to replicate the Venezuela playbook in Iran – keeping the governing system in place but installing a leader who is friendly to US interests.

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On Wednesday, Trump said he has to be “involved” in choosing the successor of Supreme Leader Ayatollah Ali Khamenei, who was assassinated in a US-Israeli attack on Saturday.

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