Houthis target Saudi airspace for military ops, exclude Mecca and Medina

The Houthi movement has declared Saudi airspace as a target for its military operations, excluding the holy cities of Mecca and Medina. This announcement, made by the Houthi military spokesman Yahya Saree, comes amid renewed tensions between the Houthis and Saudi Arabia. The warning follows a series of Houthi-claimed attacks on Saudi infrastructure, including airports and an Aramco facility. While Saudi authorities have reported intercepting several attacks, the declaration underscores a potential escalation in the ongoing conflict after a period of reduced hostilities following a 2022 UN-brokered ceasefire. Key Takeaways The Houthi declaration suggests an escalation in military operations, potentially affecting the broader conflict dynamics in the region. Current market pricing reflects a slight decrease in the likelihood of Houthi forces entering Aden by October 31, 2026, consistent with a recent 1-point drop to 10.5%. The December 31, 2026, market indicates a higher probability of Houthi entry into Aden, with a 27.5% YES pricing, suggesting expectations of significant developments by year’s end. What to Watch Observers should monitor military movements and diplomatic responses f...