Citing Gulf diplomatic sources, the report said the proposed deal aims to bring an end to Houthi strikes on Saudi infrastructure, including airports and oil facilities.

The reported offer comes amid rising regional tensions and disruptions to energy supplies across the Middle East.

The claims have not been independently verified.

Saudi Defence Minister’s surprise Tehran visit

According to Israel Hayom, the proposal was discussed during a surprise visit to Tehran by Saudi Defence Minister Prince Khalid bin Salman.

Iran reportedly offered to act as a diplomatic mediator between the parties.

The report further claimed that the Saudi minister transported the $1 billion in cash aboard a Hercules military transport aircraft used for his arrival in Tehran.

This detail could not be independently confirmed.

In an official statement, Saudi Arabia’s Foreign Ministry said the visit by Prince Khalid and representatives of member states of the Mecca Joint Defence Alliance was part of ongoing efforts to de-escalate tensions, encourage dialogue and diplomatic solutions, and support mediation efforts by Qatar and Pakistan.

Pakistan, Turkey also represented

The discussions reportedly brought together regional representatives, including Pakistan’s army chief, Field Marshal Asim Munir, and Turkey’s intelligence chief, Ibrahim Kalin.

Iran was represented by President Masoud Pezeshkian, Secretary of the Supreme National Security Council Mohsen Rezaei and officials from the Islamic Revolutionary Guard Corps, according to the report.

Despite the collective-defence commitments under the Mecca Joint Defence Agreement, Pakistan and Turkey have reportedly stopped short of providing full-scale military support, with their involvement described as limited to military advisers rather than combat forces or major reinforcements.

Why is Saudi Arabia offering $1 billion?

A Saudi official cited by Israel Hayom reportedly attributed the conflict partly to the failure to implement agreements reached three years ago.

Under the proposed arrangement, Saudi Arabia would provide financial assistance to the Houthis to support a peace settlement.

The money would reportedly be used to rebuild civilian infrastructure and pay public-sector salaries in territories controlled by the rebels.

In return, the Houthis would be expected to uphold a ceasefire and halt attacks on Saudi Arabia.

The report said the Houthis have justified their renewed attacks by accusing Riyadh of backing away from earlier commitments, with Iran allegedly helping sustain their campaign.

Attacks on oil infrastructure raise stakes

The reported negotiations come amid continuing concerns over Houthi attacks on Saudi airports and energy infrastructure, which could threaten the kingdom’s economic interests and investor confidence.

Separately, tensions involving Iran and commercial shipping in the Strait of Hormuz have raised concerns over disruptions to Middle Eastern oil exports.

The report also linked the attacks to disruption at Riyadh airport and the postponement of a major investment conference.

Whether the reported $1 billion proposal will translate into a formal agreement remains unclear. Any deal would depend on the parties reaching mutually acceptable terms and ensuring that a ceasefire is sustained.