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Yemen's Houthis have claimed to have struck parts of southern Israel with 'a barrage of cruise missiles and drones' in a second attack today.
It comes after Israel's military said it had successfully intercepted the first strike earlier today, but the move raises concerns that the armed militia could join Tehran in attacks on shipping in the region.
Experts fear that the Houthis could close the Suez Canal after the Yemeni militia joined the conflict in the Middle East overnight by firing a missile towards Israel.
The Houthis could target ships in the the Bab al-Mandab Strait, a choke point which leads to the Suez Canal, or even the canal itself, Mohamad Elmasry, a professor of Media Studies at the Doha Institute for Graduate Studies, has said.
This would mean a second major shipping route closed in addition to the Strait of Hormuz, potentially causing significant harm to the global economy - with vessels unable to retain insurance to travel through the region.
Elsewhere, more than two dozen US troops have been wounded in Iranian strikes on a Saudi air base in the past week, sources have said, including 15 in an incident at the Prince Sultan air base on Friday.
Strikes continued across the region overnight, including in Iran, Lebanon, Israel and Bahrain.
Israel has threatened to escalate strikes on the Islamic regime, while US President Donald Trump yesterday hinted he was considering sending troops into the region - something Iran warned would see them exact a heavy price.
The Houthi rebels in Yemen could cause further turmoil to global shipping by effectively closing the Suez Canal, experts have warned.
The terror group, backed by Iran, entered the war between Tehran and the US and Israel overnight with a missile attack towards Tel Aviv.
It is feared the militia could make a return to striking ships after attacking multiple vessels in the Red Sea during the war in Gaza.
An obvious target would be the Bab al-Mandab Strait off the coast of Yemen, a key choke point for sea traffic towards the ?Suez Canal.