President Hadi attempts to appease the Houthis –

The country's president, Abdo Rabbo Mansour Hadi, reached the decision a day after mass anti-government protests had escalated, bringing the capital city to a standstill.

There was no immediate comment available from the prime minister, who was released from his duties on Tuesday.

The SABA news agency reported the president as saying: "The nation is passing through tough times...It is standing at a crossroads: either walk the path of life, development and a new Yemen, or chaos, lawlessness and the unknown."

President Hadi furthermore announced on Tuesday that he would partially restore fuel subsidies, thus lowering costs by 30 percent. The move came in response to protesters' demands.

Political and economic instability have gripped Yemen since early 2012, when its long-time leader Ali Abdullah Saleh was forced from power. The government has struggled since then against an al Qaeda insurgency and a secessionist movement in the country's south.

In recent months, a Zaidi group led by Abdel-Malek Al-Houti has expanded its influence in the north of Yemen, where they form the majority.

Their calls for a departure from the current unity government escalated in August with protests in Yemen's capital city, Sanaa. What began as protests camps near key ministry buildings and the Sanaa international airport turned into mass demonstrations.

Despite calls from the UN Security Council last week for the Houthis to cease all hostilities, the group mobilized hundreds of thousands of people on Monday. It had also warned the government that it would urge its followers to follow a path of civil disobedience if its demands were not met.