Recent Israeli airstrikes on Houthi targets in Sanaa and Hudaydah in mid-to-late September 2026 reflect ongoing responses to Houthi missile and drone threats, including attacks on Saudi infrastructure and Red Sea shipping routes. Houthi advances along Yemen’s western coast, including gains near the Bab al-Mandab Strait, have heightened regional tensions amid the group’s alignment with Iran and coordination claims with other proxies. Yemeni government forces and Saudi-led elements continue operations in Taiz governorate, while reports indicate Israeli-Saudi intelligence discussions and U.S. mediation on countering Houthi threats. Trader sentiment tracks the pace of Israeli military planning, Houthi escalation signals, and any new cross-border launches or diplomatic pauses that could alter the likelihood of additional strikes within the market’s resolution window.