Recent Houthi missile and drone strikes on Saudi targets, including Riyadh’s King Khalid International Airport and Aramco facilities, have intensified cross-border pressure amid renewed fighting in Yemen. The Iran-aligned group advanced toward the Bab el-Mandeb Strait and Red Sea coast earlier in 2026, prompting Saudi-backed Yemeni government forces to launch Operation Dawn of Yemen with air support to reclaim territory. Saudi air defenses have intercepted multiple incoming projectiles in recent days, while coalition strikes hit Sanaa and other Houthi-held sites. No ground incursions into Saudi Arabia have occurred, though traders monitor escalation risks tied to proxy dynamics, Iranian involvement, and any diplomatic openings such as Qatari mediation proposals. Scheduled military operations and port restrictions remain key variables that could influence further volatility.