A day after Shiite rebels in Yemen seized the presidential palace and surrounded the his home, Yemeni President President Abed Mansour Hadi has agreed to major concessions that will likely grant more autonomy to the insurgents.

The deal called for the Houthi rebels to withdraw from parts of the capital city Sanaa – that includes the presidential palace, a missile base, and TV stations.  They will also free President Hadi’s chief of staff, Ahmed Awad bin Mubarak, who was abducted over the weekend.  In exchange, the Shiite Houthi rebels will play a role when the constitution is amended, with their representation in the parliament and in state institutions will be expanded.

“This deal specifies a two week grace period to implement the core of what was agreed upon and we will be watching up close to see whether the government is serious or not this time,” said a spokesman for the Houthi political council.

The US is very concerned about the effect this could have on Yemen’s cooperation in anti-terrorism efforts, because the Houthi are very much against any such involvement and see the US and Israel as the devil.