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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
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 20, 2025
2 min readLast updated: January 24, 2026
The US State Department has approved a $100 million precision rocket sale to Saudi Arabia amid the Houthi conflict, aiming to counter drone threats.
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)
The main topic is the US approval of a precision rocket sale to Saudi Arabia amid the Houthi conflict.
The arms deal is valued at approximately $100 million.
The principal contractor for the sale is BAE Systems.
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