The Pentagon is preparing for possible renewed military strikes against Iran as escalating Houthi attacks on Saudi Arabia and fresh violence against shipping in the Gulf threaten to widen the Middle East conflict, sending oil prices sharply higher Thursday.

The developments come as President Donald Trump weighs further military action against Tehran, even as Iranian leaders signal that a diplomatic settlement remains possible.

According to Axios, the Pentagon has instructed US Central Command to prepare for potential large-scale operations against Iran. President Trump has not made a final decision, but renewed strikes could come before the November 3 US midterm elections.

Meanwhile, Yemen’s Iran-backed Houthis claimed Thursday to have launched another ballistic missile at King Khalid International Airport in Riyadh. Saudi authorities had not immediately confirmed the latest attack.

Earlier strikes on airports in Riyadh and Abha killed three people and wounded 36, according to Saudi officials. The Saudi-led coalition responded with attacks on more than 80 Houthi military positions across four Yemeni provinces.

The fighting has also intensified near the Bab el Mandeb Strait, a crucial passage linking the Red Sea with international shipping routes. Saudi-backed government forces are attempting to regain territory from the Houthis, raising fears of a prolonged confrontation.

A separate attack on a tanker north of Qatar added to the mounting danger at sea. The United Kingdom Maritime Trade Operations agency reported that the vessel was struck by multiple projectiles, causing an unspecified number of casualties. Responsibility remains unclear.

Iran has also threatened restrictions on shipping routes through the Strait of Hormuz, a waterway that handled approximately 20% of global oil supplies before the war began in February.

Energy markets reacted sharply. Brent crude climbed above $104 a barrel Thursday as traders weighed the danger to Gulf exports alongside hurricane-related disruptions to US production.

Despite the military buildup, diplomacy has not disappeared.

Iranian President Masoud Pezeshkian told Russian President Vladimir Putin that an agreement with Washington remained possible if the US respected international legal frameworks. Tehran has also indicated that its response to American proposals will be communicated through mediators.

The confrontation follows the US-Israeli military campaign launched against Iran on February 28 and subsequent ceasefire efforts that failed to produce a lasting settlement.

With missiles targeting airports, commercial ships coming under attack, and Washington preparing military options, the region faces another dangerous escalation even as negotiations continue.