War has flared between the US and Iran, with coordinated US and Saudi forces striking Iran-backed militias in Iraq on July 29. This operation was a response to over 30 drone attacks in the preceding 72 hours, which US Central Command (CENTCOM) attributed to groups directed by Iran's Islamic Revolutionary Guard Corps. These drone attacks targeted US forces and Saudi oil facilities. The strikes hit weapons and logistics sites used by the militias, with Saudi Arabia's Defense Ministry citing its right to self-defense under Article 51 of the UN Charter, following drone attacks on its petroleum facilities in the Eastern Province and around Riyadh.
The retaliatory strikes killed at least 20 members and wounded 32 others from the Popular Mobilization Forces (PMF), an alliance of former paramilitary groups integrated into the Iraqi armed forces. The PMF denounced the operation as a "dangerous escalation" and a violation of Iraqi sovereignty, with strikes impacting bases in seven provinces including Baghdad, Nineveh, and Basra. Separately, Iran's Revolutionary Guards claimed to have struck and halted three oil tankers in the Strait of Hormuz after they ignored warnings and used an unsafe and illegal route, further complicating efforts to revive diplomacy regarding the waterway.
The escalation immediately impacted energy markets. Brent crude gained 3.9% to $87.39 a barrel, while US West Texas Intermediate climbed 3.8% to $82.31. This surge in oil prices partially reversed a recent slide and highlighted the economic sensitivity of the conflict, particularly with the closure of the Strait of Hormuz, which normally handles about a fifth of the world's seaborne oil. The renewed fighting also coincided with a meeting between President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, their first since the war began with US-Israeli strikes on Iran in late February. Concerns are also rising about the US military's diminished stockpiles of air defense systems like Patriot and THAAD interceptors.
Iran had also launched ballistic missiles at US forces in the Middle East late Tuesday, including at Jordan's Muwaffaq Salti Air Base. CENTCOM reported that all these missiles were intercepted, but the attacks marked an end to a brief pause in direct US-Iran hostilities aimed at facilitating renewed negotiations. The U.S. official, speaking anonymously, stated that the two attacks (drone attacks on Saudi Arabia and missile attacks on US forces) were not connected. Analysts from the Center for Strategic and International Studies noted that the recent fighting further depleted US munition stockpiles, potentially increasing risk for American troops if the conflict continues.
