Houthi forces have advanced to within 80 km of Aden, the closest since 2015, while launching ballistic missile strikes on the presidential palace and airport in October and November amid renewed fighting tied to the broader regional conflict. These developments elevate risks to Red Sea shipping through the Bab al-Mandeb Strait, a key chokepoint for Saudi oil exports diverted from the Strait of Hormuz, sustaining elevated tanker freight rates above $20 per barrel on affected routes and supporting Brent crude prices with added war-risk premiums. Trader sentiment on entry timelines, reflected in low single-digit implied probabilities for near-term resolution and around 24-33% by year-end, incorporates Saudi coalition air support and Yemeni government counteroffensives, though ongoing clashes and humanitarian strains introduce volatility ahead of potential further escalations.