SANAA — Saudi Arabia has suspended most of its financial aid to Yemen, Yemeni and Western sources said, in a clear indication of its dissatisfaction with the growing political power of Shi’a Houthi fighters backed by Riyadh’s regional rival, Iran.

Yemen, which is battling an al-Qaeda insurgency, a southern secessionist movement, endemic corruption and poor governance, has often relied on its richer northern neighbor to help finance everything from government salaries to welfare payments.

But soon after Houthi fighters took over the capital Sanaa in September, Saudi Arabia promptly suspended much of that aid, concerned the rebels will use their military muscle to dominate domestic politics and project Iran’s influence.

A deal signed in September between political parties and the Houthis called for the formation of a new unity government followed by the Houthis’ withdrawal from the capital. But even though the new government has been formed, Houthi fighters continue to man checkpoints around the city and guard many state institutions in the capital.

“The Saudis have conditioned any aid on the implementation of the (deal). The Houthis have to leave before they pay,” a senior Yemeni government official told Reuters.

Despite the suspension, Saudi Arabia this week announced $54 million in food relief for 45,000 families. A Western source, who asked not to be further identified, said the Saudis were also still funding some development and infrastructure projects.

But the source said the Saudis had stopped making other essential payments.