Riyadh's King Khalid International Airport has resumed international flights after a two-week closure triggered by Houthi attacks from Yemen, restoring a key aviation link to the Saudi capital even as security concerns persist.

International services are now being handled through Terminal 2. The reopening follows the interception by Saudi authorities of a ballistic missile and drones near Riyadh, an episode that underscored the continuing threat environment surrounding the kingdom's airspace.

The airport's partial return to operations represents a step toward normalcy, though the risk of further disruptions remains.

The Houthis are an armed group based in Yemen that has carried out cross-border missile and drone attacks against Saudi Arabia in the course of the conflict there. King Khalid International serves as the principal gateway for the Saudi capital and is one of the kingdom's major aviation hubs, making its operations a central pillar of the capital's international connectivity.

The reopening is likely to influence market perceptions regarding the likelihood of a broader Saudi airspace closure. Market activity reflects a modest reduction in perceived risk, with November odds for an airspace closure falling to 3.5% YES. Such odds function as a market-implied probability that shifts as new information about the security situation emerges. At the same time, ongoing Houthi threats indicate that the situation remains volatile, continuing to shape longer-term market expectations.

Markets will closely monitor any announcements from the Saudi General Authority of Civil Aviation (GACA) and Saudi Air Navigation Services (SANS) for further indications of airspace status. The response of Saudi authorities to potential future Houthi attacks will be critical in assessing the likelihood of airspace closure scenarios. In addition, diplomatic developments, such as potential ceasefire agreements with the Houthis, could significantly shift market perspectives on both airspace access and regional security.