Arbitration
As no resolution to the problem could be reached in bilateral talks, the status of the archipelago was placed in front of the Permanent Court of Arbitration in The Hague in the Netherlands. At the conclusion of the proceedings, both nations acquiesced to the 1998 decision which said sovereignty should be shared.
On 1 November 1998 "Yemeni Defence Minister Mohammad Diefallah Mohammad raised his country's flag over the island of Greater Hanish as Yemeni army and navy troops took up positions on it. At the same time, Eritrean troops departed on board a helicopter and a naval vessel."
Read more about this topic: Hanish Islands Conflict