**Recent escalations in the Israel-Iran conflict and associated regional threats have shaped trader expectations for a major Israeli airspace closure by late September 2026.** Missile and drone exchanges since February, including Iranian barrages in June that prompted temporary suspensions, have led to repeated restrictions at Ben Gurion Airport despite a fragile April ceasefire. As of mid-September, Israeli airspace remains open to limited commercial operations but faces ongoing volatility from Iran-backed groups including Hezbollah and the Houthis. A U.S. Embassy security alert issued September 19 specifically warned of potential sudden cancellations and closures ahead of Yom Kippur, citing the complex security environment. These factors, combined with airline caution and historical patterns of short-notice shutdowns during active threats, underpin the near-certain trader consensus reflected in current market pricing for resolution by September 30.