The ongoing conflict in the Middle East has intensified as Iranian-backed Houthis have declared a naval blockade against Saudi Arabia, attacking Saudi tankers in the Red Sea. In response, Saudi military forces have launched strikes on Houthi targets in Yemen. The situation escalated further when Houthis retaliated with missile and drone attacks on various locations in Saudi Arabia, raising fears of a wider conflict. As tensions flare, the U.S. has threatened military action against Iran and its proxies, complicating the already volatile situation in the region. With ship insurers restricting war coverage for vessels traveling through the Red Sea, the global economic ramifications of this conflict are becoming increasingly pronounced.