Key insights
- The Israeli military reported a missile launch from Yemen, marking the first such event since the war began. This development, following threats from Iran-aligned Houthis, raises concerns about a broader regional conflict. Potential disruptions to shipping lanes around the Arabian Peninsula and the Red Sea could negatively impact global trade and increase inflationary pressures, posing a downside risk to US equities.
March 28 (Reuters) - The Israeli military said early on Saturday it had identified a launch of a missile from Yemen, the first time a missile has launched from Yemen since the war erupted.
The launch comes hours after Iran-aligned Houthis said on Friday they were prepared to act if what the group called an escalation against Iran and the "axis of resistance" continued, but did not say what form any intervention would take.
The Houthis entry to the war raises the prospects of a broader regional confrontation , particularly given the Houthis’ ability to strike targets far beyond Yemen and disrupt shipping lanes around the Arabian Peninsula and the Red Sea, which they had done in support of Hamas in Gaza after October 7, 2023.
Iran’s Shi’ite allies in Lebanon and Iraq have already joined the war in the region triggered by U.S. and Israeli strikes on Tehran four weeks ago.