Yemen transition deal falls through at last minute

Heavy diplomatic wrangling by Western and Gulf diplomats keen to resolve the three-month standoff had secured an agreement in principle that would see Saleh, a shrewd political survivor, resign within a month, an opposition official said.

But in a familiar twist, last-minute snags over details derailed the deal that would have granted Saleh immunity from prosecution, allowing him a dignified exit from power in the Arabian Peninsula state he has ruled for nearly 33 years.

A government official told Reuters a deal remained possible. "There is still a glimmer of hope," he said.

But the leader of a bloc of Yemen's wealthy oil-exporting Gulf neighbors who has been trying to breathe life into the deal left Sanaa without securing an agreement, in a move that suggests the sides remained significantly at odds.

The United States and oil giant Saudi Arabia, both targets of foiled attacks from al Qaeda's Yemen-based wing, are keen to see an end to the political stalemate, fearing continued chaos could give the militant group more room to operate freely.

The White House urged Saleh to sign and implement a transition deal so Yemen could "move forward immediately" with political reform. It said John Brennan, an adviser to President Barack Obama, called Saleh earlier in the day.