A diversion over KSA will not help if Iran goes full out against the KSA, and UAE. In today's threat, they also tossed in Israel for good measure. Turkey has no fly zones now as does Syria. I think every airline is aware of the lesson of the missile strike and will not want a repeat, so we might see some suspensions if the missiles fly. Much depends on the response to this morning's missile strike on the coalition airbase in Iraq.

The good news for AC is that this may boost Asian route traffic since there would be an exodus away from Gulf carriers. This could of course kill Qatar, which had already been forced to discount its airfares because of the Gulf state restrictions, again benefiting AC. Qatar often offers premium class airfares 20% less expensive than AC.
I am counting my blessings that I have no ME/India travel this year.