Tranquility returned to Yemen's embattled capital on Sunday, hours after armed tribesman and President Ali Abdullah Saleh's forces reached a truce to halt clashes which threatened to plunge the state into civil war, a Reuters report stated.

The streets of Sanaa saw pedestrians and cars moving around again where at least 115 people were killed owing to nearly a week-long pitched battle, raising global concerns over the impoverished country perched next to a crucial shipping lane through which about 3 million barrels of oil pass daily.

The latest violence pitting Saleh's forces against members of the powerful Hashed tribe led by Sadeq al-Ahmar, was the bloodiest since pro-democracy unrest erupted in January and was sparked by Saleh's refusal to sign a separate power transfer deal.

The halt in the week-long battle came with the withdrawal of armed tribesmen from government buildings and moves to get back a hold on life in the Hasaba district of Sanaa, where fighting with machine guns, rocket propelled grenades and mortars led thousands of residents to flee the city for their safety, the report said.

Despite the truce, analysts are concerned that it might be temporary and that fighting could resume again given the animosity between the groups and growing anger at Saleh for not ending his nearly 33-year-long rule which has brought the country near financial breakdown.

The truce also extends to areas outside of Sanaa where tribesmen have clashed with the president's Republican Guards and air force fighters have strafed armed tribesman with bombs. The political crisis has already cost the nation's economy as much as $5 billion and immediate aid is needed to prevent a meltdown in the country with a nominal GDP of $31 billion, Yemen's trade minister told Reuters on Saturday.

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