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Gulf countries who brokered the deal that would see Yemen's president stepping down have taken the agreement off the table, citing "a lack of suitable conditions".
While the president's party and Yemen's opposition have all signed the agreement, president Ali Abdullah Saleh has - for the third time - refused to.
Saleh blames the opposition for not agreeing to some of his terms.
Meanwhile, US Secretary of State Hillary Clinton is accusing the president of turning his back on his commitments.
Al Jazeera's Iain Bruce reports.
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