Saudi-led coalition: drone launched by Yemen’s Houthis over Mecca destroyed

Ala Askool The Saudi-led coalition has reported the destruction of a drone launched by Yemen’s Houthi forces over Mecca. The coalition’s defenses intercepted the drone before it could enter the city’s restricted airspace, according to a statement from coalition spokesman Turki al-Maliki. The Houthis, aligned with Iran and controlling significant parts of western Yemen, have denied targeting Mecca, calling the allegations fabricated. This incident marks the second alleged attempt by the Houthis to target Mecca, following a similar ballistic missile launch in 2017 attributed to them by Saudi authorities. Key Takeaways The interception of the Houthi drone appears to suggest increased military pressure from the Saudi-led coalition. Market pricing indicates a decrease in the likelihood of the Houthis entering Aden, suggesting a stronger Saudi response. The term structure in markets reflects a more significant expected movement in December, suggesting a potential catalyst in that period. What to Watch Observers will be closely monitoring any further military actions from both the Saudi-led coalition and the Houthis, as these could influence market perceptions of the conflict’s trajectory...