Recent Houthi missile and drone strikes on Saudi airports, oil facilities, and pipelines in late October have sustained pressure on Gulf Arab states, reflecting Iran's use of proxies amid the broader US-Iran conflict that began in February. Iranian officials have warned Arab mediators of expanded targeting of regional energy infrastructure and US-linked sites in Bahrain, Kuwait, and elsewhere should Washington or Israel resume strikes, while Tehran hosted senior Saudi, Turkish, and Pakistani officials on October 26 for de-escalation talks aimed at averting renewed fighting before US midterms. These developments, alongside ongoing Saudi air defense intercepts and Iranian preparations, shape trader assessments of near-term escalation risks tied to proxy actions or direct responses.