Strikes Pick Up as Houthis Join Iran War, US Troops Arrive, More

Houthis have joined the Iran conflict and strikes have picked up while US troops have arrived, marking a clear escalation in the Middle East. The widening confrontation elevates downside risk for global markets, is likely to push up oil and shipping risk premia, and should trigger risk-off flows into safe-haven assets and higher volatility across equities and credit.

Analysis

Houthis have joined the Iran conflict and strikes have picked up while US troops have arrived, marking a clear escalation in the Middle East. The widening confrontation elevates downside risk for global markets, is likely to push up oil and shipping risk premia, and should trigger risk-off flows into safe-haven assets and higher volatility across equities and credit.