Houthi strikes in Yemen have killed dozens at a military camp, according to officials. Saudi Arabia has warned of potential further hostilities amid escalating tensions in the Middle East. These attacks signal a breakdown of the 2022 informal truce between the Houthis and the Saudi-backed Yemeni government. Markets are monitoring the situation, which could have broader regional implications. Prediction market pricing indicates a 6.5% probability of Houthi military action against Israel by August 31, 2026, up from 6%.
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