Saudi Arabia strikes Sanaa, Houthis threaten retaliation on Aramco facilities

B.alotaby Saudi Arabia conducted airstrikes on Yemen’s capital, Sanaa, targeting the Yemen Oil Company’s Sabah central station, as reported by Houthi-controlled media. This military action follows recent Houthi attacks on Saudi airports and oil facilities, including a deadly strike on Riyadh’s airport. In response, the Houthi military spokesman has threatened severe retaliation, suggesting that Saudi Aramco facilities could be targeted. The escalation in hostilities marks a significant increase in cross-border tensions, with potential implications for Saudi airspace security and regional stability. Key Takeaways The recent Saudi airstrike on Sanaa appears to have increased tensions significantly, with market pricing suggesting a higher likelihood of Saudi airspace closure. The probability of Houthi forces entering Aden by the end of October remains low, though markets indicate a potential increase in activity by the end of December. The current geopolitical climate is consistent with heightened risks for Saudi aviation and infrastructure, as reflected in recent market movements. What to Watch Observers should monitor announcements from the Saudi General Authority of Civil Aviation ...