Recent escalation in the Yemen conflict has driven trader focus on Houthi capabilities, with Saudi-backed Yemeni government forces launching a major counteroffensive in early October 2026 to reclaim Red Sea coastal territory including areas near the Bab al-Mandab Strait. Houthis have retaliated with coordinated drone and missile strikes on Saudi infrastructure, including multiple attacks on Riyadh's King Khalid International Airport that killed at least 13 people and injured hundreds, plus hits on Aramco facilities in Dhahran and Riyadh. Saudi-led coalition airstrikes and intercepts continue alongside defensive support from Turkey and Pakistan, while no confirmed ground incursions into Saudi territory have occurred. Ongoing tit-for-tat exchanges, investor events in Riyadh, and stalled diplomacy suggest sustained cross-border pressure but significant barriers to territorial entry.