The conflict involving Iran and its proxy, the Houthis, has intensified as recent attacks see the Houthis firing missiles at Saudi oil facilities and declaring a blockade on maritime routes, particularly in the Red Sea. In retaliation, Saudi Arabia has launched airstrikes against Houthi positions in Yemen after the militia targeted energy sites, raising concerns over oil supply and security in the region. U.S. President Trump has threatened major military punishment in response to the escalating Houthi attacks, further complicating the situation. Amid these developments, oil prices have surged, and Gulf markets have felt the impact of the ongoing military actions and the threat to crucial trade chokepoints. The United Nations has warned of a potential wider escalation due to these hostilities.