Saudi Arabia to grant Yemen $1.2 billion in economic aid - Saudi source

FILE PHOTO: People walk outside the gate of the old city of Taiz, Yemen May 24, 2022. REUTERS/Anees Mahyoub

RIYADH (Reuters) - Saudi Arabia is giving Yemen's presidential council $1.2 billion to help the country's struggling economy, a Saudi source told Reuters on Tuesday.

Fighting with the Iran-aligned Houthis in north Yemen has largely stopped over the last year but the Saudi-backed government, based in Aden, has grappled with a weak currency and high prices.