Houthi missile attacks disrupt flights, ground 86% at Riyadh airport

Recent Houthi missile attacks have caused significant disruptions in Saudi Arabia, grounding 86% of scheduled flights at Riyadh’s King Khalid International Airport. The attacks have disrupted air travel across the country, with the Houthi movement claiming responsibility for another strike shortly after the airport attempted to resume operations. The ongoing security situation has heightened concerns about the stability of Saudi airspace and the potential for further disruptions. Markets have reacted to the escalating situation, interpreting it as indicative of increased airspace security concerns. The possibility of Saudi authorities announcing a formal nationwide closure of airspace is becoming a focal point, as suggested by current pricing. The impact of these developments is reflected in the increased odds for the January 1, 2027, market, where the likelihood of a Saudi airspace closure has risen to 20.5% YES. The Saudi General Authority of Civil Aviation (GACA) and Saudi Air Navigation Services (SANS) are key entities whose actions will likely influence the market’s direction. Any further escalations, particularly involving major airports or Saudi Arabia entering direct hostil...