Recent Houthi missile and drone strikes on Saudi airports, including a deadly October 8–11 attack on Riyadh’s King Khalid International Airport that killed at least 13 and wounded hundreds, have intensified tensions. These Iran-aligned assaults prompted the first public Saudi-Iran foreign minister call in months, where Tehran urged diplomacy and offered to facilitate Yemen talks while Riyadh warned of retaliation if strikes on its territory or energy infrastructure continue. Broader regional dynamics, including the ongoing U.S.-Iran conflict and Houthi operations tied to Yemen fighting, shape trader views on direct Saudi military action against Iran. Diplomatic channels and U.S. positioning remain key variables that could alter escalation risks in the near term.