The conflict in Northern Yemen continues to rage, with the government deploying forces to curb an uprising by Houthi fighters.

Meanwhile, neighbouring Saudi Arabia has mobilised its forces on the border saying it will create a buffer zone inside Northern Yemen to keep the fighters away from the border.

Iran has demanded that outside forces stay out of the war between Yemen's government and the Houthi rebels, but called on the Organisation of the Islamic Conference (OIC) to intervene.

In the Yemeni capital opposition figures have warned that this local conflict could have ramifications far beyond the country's borders.

Is a local insurrection turning into a war between the region's strongest powers? Are we witnessing the birth of another proxy war in the Middle East? And who is likely to come out on top?

Inside Story is joined by Abdel-Ghani al-Iryani, an independent political analyst, Hussein Shobokshi, a columnist for Asharq al-Awsat newspaper, and Sadegh Zibakalam, a professor of political science at Tehran University.

This episode of Inside Story aired from Sunday, November 15, 2009.