Yemen rebel leader said hurt in clashes with state

SANAA, May 26 (Reuters) - Yemeni rebel leader Abdul-Malik al-Houthi may have been killed or wounded during weeks of heavy clashes with government forces in his northern stronghold of Saada, sources close to the government said on Monday.

Houthi's aides denied that he was hurt but the sources said the rebel leader had not been directly involved in the fighting over the past week, with all communications going through his aide Saleh Habra.

Qatari mediators returned to Yemen early in May hoping to salvage a ceasefire agreement that ended six months of fighting between government forces and the rebels last June.

They have since left the country without a breakthrough and it was not clear if they would return.

Yemeni President Ali Abdullah Saleh blamed Houthi in a speech last Wednesday for failing to respond to Qatari mediation and warned that the government would impose law and order.

"Facing all the crimes that were committed by these elements, and what happened against the worshippers in one of the Saada mosques, the government will take its national, constitutional and legal responsibilities in imposing the rule of law and order," Saleh said.

"These external elements will bear responsibility ... for not responding to the voice of reason.

Fighting in the mountainous region of Saada has raged on and off since a conflict broke out in 2004 between government forces and Houthi's rebels, members of the Zaydi sect of Shi'ite Islam.

The latest bout began over a month ago and a bomb killed 15 people outside a mosque on May 2. The government blamed Houthi and his followers, a charge the rebel leader denied.

The government has since launched a major offensive to crush the rebels. Sources close to the government say its forces have made sweeping progress against the rebels in the past week but communications with the volatile province have been severed for over a week making it difficult to obtain independent reports.

Yemeni officials say the rebels want to return to a form of clerical rule prevalent in the country until the 1960s. The rebels, who want Zaydi schools and oppose the government's alliance with the United States, say they are defending their villages against government oppression.

Sunni Muslims form a majority of Yemen's 19 million population, while most of the rest are Zaydis.

Hundreds of people have been killed during the conflict and thousands have fled their homes.

The International Committee of the Red Cross appealed earlier this month for $8 million to provide food, water and medical assistance to people caught up in the fighting.

One of the poorest countries outside Africa, Yemen is also grappling with a violent campaign by al Qaeda militants, dwindling oil and water resources, unemployment, corruption and a growing community of Somali refugees. (Writing by Lin Noueihed)