Yemen's government offered yesterday to resign within a month and to review a decision to cut fuel subsidies to try to end protests by the Shi'ite Houthi movement, said a government source.

Tens of thousands of Yemenis massed in the capital Sana'a on Friday in a protest called by the Houthis to demand the resignation and a reversal of the subsidy cuts. It came after a week of pressure on president Abd-Rabbu Mansour Hadi, who has struggled to keep order in the US-allied country which borders oil exporter Saudi Arabia.

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