Houthis attacked Saudi Arabia from iraqi territory in cooperation with iraqi militias, two officials in the region say

A recent report indicates that Houthi forces launched an attack on Saudi Arabia from Iraqi territory with the assistance of Iranian-backed Iraqi militias. The involvement of Iraq as a launch or coordination area marks an escalation in the ongoing Saudi Arabia-Yemen conflict, potentially expanding the confrontation beyond its current borders. This development follows a pattern of increased hostilities, including Saudi Arabia’s interception of drones and missiles from Houthi forces, as well as retaliatory strikes against militia targets in Iraq by Riyadh. The participation of Iraqi militias could suggest a broader regional conflict involving multiple actors. Key Takeaways The report of Houthi attacks from Iraqi territory appears to indicate an escalation in the Saudi Arabia-Yemen conflict, involving multiple regional actors. Market pricing suggests increased odds for Iranian military action against a Gulf state, with current odds at 35.5% for an event by July 31. The utilization of Iraqi territory by Houthis could suggest a shift in regional military dynamics, potentially drawing in more actors. What to Watch Observers should monitor any further military responses from Saudi Arabia a...