There were reports that flights have been suspended at Jeddah Airport in Saudi Arabia . There is other reports of explosions in Jazan region of Saudi Arabia with explosions heard in Saudi Arabian oilfields. Alerts have also been activated in Saudi Arabia is Jazan region but reports are that the danger has passed. Tensions rise between Saudi Arabia and the HouthisTensions surrounding Saudi Arabia increased sharply over the weekend as fighting intensified between Yemen’s Iran-backed Houthi rebels and forces aligned with the Saudi-backed Yemeni government.Saudi-backed forces expanded ground operations against the Houthis on several fronts, including Hodeida, Taiz, Jawf, Marib and Bayda. The Houthis accused Saudi Arabia of supporting airstrikes inside Yemen, including an attack on a prison in Jawf province that reportedly killed seven people.The situation escalated further early Tuesday when the Houthis launched dozens of ballistic missiles and drones toward southern Saudi Arabia. The attacks targeted Saudi Aramco facilities in Abha, Najran and Jazan, along with the King Khalid Air Base in Khamis Mushait. Saudi authorities said 73 people were wounded, including women and children, while fires forced some energy facilities and utilities to suspend operations temporarily.The renewed fighting effectively ends the relative calm established by the 2022 truce. Since August 23, the escalation inside Yemen has reportedly killed at least 194 people, wounded more than 880 and displaced over 21,000. Why it matters to the marketsThe attacks raise the risk of a broader regional conflict involving Saudi Arabia, the Houthis and, indirectly, Iran. They also create a new threat to global energy supplies.Saudi Arabia has been routing more oil toward the Red Sea because shipping through the Strait of Hormuz remains severely disrupted. Attacks on southern Saudi facilities and Red Sea shipping therefore threaten the alternative route being used to keep crude flowing.Oil prices have moved to a high today of $94.73. The price is off that high price near $92 currently. The 100 hour moving average comes in at $91.71. That will be a key barometer in the short-term for traders.The key question now is how aggressively Saudi Arabia responds. A limited response could contain the conflict, but sustained Saudi airstrikes followed by additional Houthi attacks on Aramco facilities or Red Sea shipping would raise the risk of a more serious disruption to global oil supplies. This article was written by Greg Michalowski at investinglive.com.