Escalating cross-border strikes between Yemen’s Iran-aligned Houthis and Saudi-led forces have intensified since July 2026, following the collapse of a fragile truce. Houthis have repeatedly claimed ballistic missile and drone operations targeting Saudi military sites, Red Sea ports such as Yanbu, and energy infrastructure including Aramco facilities, with visible fires reported near Riyadh on October 3. Saudi air defenses have intercepted multiple waves of projectiles aimed at cities including Taif and Khamis Mushait, while coalition aircraft conduct precision strikes on Houthi positions in Taiz, Sanaa, and western fronts. Riyadh is reportedly preparing ground-supported operations to secure Red Sea coastal areas and the Bab al-Mandab strait, amid broader regional concerns over shipping routes and energy supplies. Trader assessments of near-term Houthi action reflect these verified exchanges and the risk of further retaliation cycles.