Strikes Continue as Houthis Join Iran War, Raising Escalation Fears

Conflict enters its fifth week as Israel struck Tehran and Saudi Arabia intercepted nearly a dozen drones after Yemen’s Houthis joined the fighting. The escalation raises risk of wider regional conflict, likely increasing oil price volatility and driving risk-off flows into safe havens, with potential negative spillovers to emerging markets and regional supply routes.

Analysis

Conflict enters its fifth week as Israel struck Tehran and Saudi Arabia intercepted nearly a dozen drones after Yemen’s Houthis joined the fighting. The escalation raises risk of wider regional conflict, likely increasing oil price volatility and driving risk-off flows into safe havens, with potential negative spillovers to emerging markets and regional supply routes.