On July 25, 2026, Saudi Arabia launched military strikes against Houthi positions following attacks on key energy sites by the Iran-backed rebels. The offensive focused on strategic locations in Hodeidah, a major northern Yemeni port under Houthi control, signaling a sharp rise in conflict activity after a fragile truce that held since 2022.
The Houthis have promised to escalate their response, warning of a cycle of retaliations. This recent escalation reflects the broader Yemen war and the ongoing proxy tensions between Saudi Arabia and Iran. Houthi assaults on Saudi oil facilities and shipping lanes have been a persistent pressure tactic against Riyadh.
Saudi Arabia's latest strikes aim to curb such disruptions and secure regional energy flows. Meanwhile, prediction markets have shifted: the odds of Houthi military action against Israel by the end of July have dropped to 6.5%, likely due to the increased Saudi military pressure on the rebels.
