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US approves precision rocket sale to Saudi Arabia amid Houthi conflict

Published by Global Banking & Finance Review

Posted on March 20, 2025

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· Last updated: January 24, 2026

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US approves precision rocket sale to Saudi Arabia amid Houthi conflict
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By Mike Stone WASHINGTON (Reuters) - The U.S. State Department has approved what would be the first sale of advanced precision kill weapon systems to Saudi Arabia for an estimated cost of $100 million

US Approves Rocket Sale to Saudi Arabia Amid Houthi Conflict

By Mike Stone

WASHINGTON (Reuters) - The U.S. State Department has approved what would be the first sale of advanced precision kill weapon systems to Saudi Arabia for an estimated cost of $100 million, the Pentagon said on Thursday.

The potential sale comes as the U.S. continues a wave of strikes on Houthi targets in Yemen which began last Saturday, killing at least 31 people in the biggest such operation since President Donald Trump returned to the White House in January.

Yemen's civil war erupted in late 2014 when the Houthis seized the capital Sanaa. Worried by the growing influence of Shi'ite Iran along its border, Saudi Arabia led a Western-backed coalition in March 2015 to support the Saudi-backed government.

The war, which has abated since a ceasefire in 2022, has killed tens of thousands of people, devastated Yemen's economy and left millions hungry.

The advanced precision kill weapon system (APKWS) approved for sale to Saudi Arabia is a laser-guided rocket that can hit both airborne and surface targets. The price of the weapon is about $22,000, making it a cost-effective choice for shooting down low-cost small armed drones like those used by the Houthis that have disrupted shipping in the Red Sea.

The Pentagon's Defense Security Cooperation Agency notified Congress of the possible sale of 2000 APKWS and associated equipment and training on Thursday.

Despite approval by the State Department, the notification does not indicate that a contract has been signed or that negotiations have concluded.

The principal contractor for the sale will be BAE Systems, the Pentagon said in a statement.

(Reporting by Mike Stone, Jasper Ward and Ismail Shakil; Editing by Jamie Freed)

Key Takeaways

  • US approves $100 million precision rocket sale to Saudi Arabia.
  • The sale includes 2000 APKWS and associated equipment.
  • The deal aims to counter Houthi drone threats.
  • The principal contractor is BAE Systems.
  • The conflict in Yemen has caused significant humanitarian issues.

Frequently Asked Questions

What is the main topic?
The main topic is the US approval of a precision rocket sale to Saudi Arabia amid the Houthi conflict.
What is the value of the arms deal?
The arms deal is valued at approximately $100 million.
Who is the principal contractor for the sale?
The principal contractor for the sale is BAE Systems.

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