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The stability of Yemen is a priority for the United States and its Gulf Arab allies because of its position next to Saudi Arabia and shipping lanes which run through the Gulf of Aden.

The power-sharing deal signed on Sunday makes Houthis a part of the government, but it is not clear if that will satisfy their demands, or if it will instead embolden them to seek further powers.

Against the backdrop of the fragmented political, tribal and sectarian scene, any escalation of the fighting could also allow an array of other factions, including southern separatists, former leader Ali Abdullah Saleh and even al Qaeda to take advantage.

President Abd-Rabbu Mansour Hadi has said Yemen may be heading for civil war.

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