Recent Houthi missile and drone strikes on Riyadh’s King Khalid International Airport in October 2026, which killed at least 13 people and prompted an airport shutdown and Saudi air defense review, have heightened scrutiny of Iran’s role through its Yemeni proxies. Iranian Foreign Minister Abbas Araghchi held a phone call with his Saudi counterpart on October 12, urging diplomacy and offering to facilitate talks between Riyadh and the Houthis while warning against military escalation. This occurs amid the broader US-Israel-Iran conflict that began in February 2026, with Iran conducting shipping attacks in the Strait of Hormuz and maintaining influence over proxy groups. Traders assess whether these proxy actions or direct Iranian missile or drone operations against Saudi targets will occur before the market’s resolution date, factoring in ongoing diplomatic contacts, Saudi responses, and any shifts in regional military postures.