Recent Houthi missile and drone strikes on Riyadh’s King Khalid International Airport in mid-October 2026, which killed at least a dozen people and injured hundreds, have intensified direct confrontation and reduced near-term prospects for an effective ceasefire. Saudi Arabia has publicly conditioned any truce on the internationally recognized Yemeni government regaining territory lost during the Houthis’ September advances along the Red Sea coast and Bab al-Mandab Strait. A Saudi-backed counteroffensive launched in early October continues with coalition airstrikes targeting Houthi capabilities, while Iran’s October 12 offer to mediate has received little Saudi interest. The 2022 UN-brokered truce remains suspended amid these exchanges, and traders assess the two-week pause requirement against ongoing military operations and stated positions on both sides.