Houthi forces, backed by Iran, have sustained ballistic missile and drone capabilities targeting regional actors amid the broader Iran-linked conflicts, with trader sentiment shaped by their recent barrage of attacks on Saudi infrastructure including Riyadh airport and oil sites. Saudi-led coalition airstrikes have targeted Houthi launchers and storage in Yemen, while diplomatic talks in Tehran involving Saudi, Turkish, and Pakistani officials seek to curb escalation. Direct Houthi strikes on Israel remain limited since earlier 2026 actions during the Iran war, many intercepted by Israeli defenses, though U.S. travel advisories cite ongoing threats and Houthis maintain coordination rhetoric with other Iran-aligned groups. Potential catalysts include any renewed Iran-related tensions or shifts in Saudi-Yemen fighting that could redirect Houthi operations.