US and Saudi Arabia Strike Iran-Backed Fighters in Iraq

The United States and Saudi Arabia jointly struck Iran-backed armed groups across Iraq on Wednesday, killing at least 20 fighters and wounding 32 — marking the first US military action in the region since President Donald Trump suspended an intensive bombing campaign against Iran last week, and the first time Saudi Arabia has publicly participated in strikes alongside the US during the conflict.

Strikes Retaliate for Drone Attacks on Saudi Oil Targets

Washington and Riyadh said they launched the joint attacks in response to drone strikes on Saudi oil infrastructure launched from Iraqi territory. Iraq’s Popular Mobilization Forces — powerful Iran-backed paramilitary groups formally incorporated into the Iraqi security forces — said the strikes hit several of their bases across the country.

The US Saudi Arabia strikes Iraq Iran-backed fighters operation raised immediate fears of a wider regional war. Drawing Sunni Muslim Saudi Arabia into direct combat against Shiite Iranian proxies on Iraqi soil represents a significant escalation, opening a new front in a conflict that has already engulfed the Strait of Hormuz and Yemen’s Red Sea corridor.

Iraq’s Shiite-led government, which maintains rare diplomatic ties with both Tehran and Washington, called an emergency meeting. The Iraqi presidency condemned the strikes as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty,” while also calling on armed groups to stop attacking Iraq’s neighbors. Iran-backed militia Harakat Hezbollah al-Nujaba vowed that US and Saudi forces would pay “a heavy price.”

Iran Strikes Jordan, Targets Ships in Hormuz

Iran retaliated on multiple fronts. The Revolutionary Guards said they fired ballistic missiles at US military installations in Jordan — where Jordan’s military reported shooting down five Iranian missiles — and struck three tankers attempting to transit the Strait of Hormuz along an “unauthorized route.”

A US projectile also reportedly struck Iran’s northwestern city of Piranshahr near the Iraqi border. Trump responded bluntly: “We’ll be hitting them hard,” though he left the door open for diplomacy, adding, “We’re going to let them keep talking.”

Hours before the Iraq strikes, the US military said its air defenses had intercepted a surprise Iranian attack on US troops in the region. Three American service members were killed in a Jordan strike earlier this month — the worst US casualties since March.

Tehran Rejects Omani Compromise on Hormuz

A diplomatic effort by Oman to broker a compromise on the Strait of Hormuz also collapsed Wednesday. Oman had proposed a plan for joint regional management of the strait, backed by Gulf states, that would permit voluntary service charges for shipping. Iran rejected it outright. “The Omani proposal is unreasonable,” a senior Iranian official told Reuters. Iran wants sole control over the inbound shipping route and partial control over the outbound one, making a 50-50 arrangement with Oman unacceptable.

Iran has insisted it controls the strait and intends to charge fees for vessel transit — a position the US and Gulf states have consistently rejected as incompatible with international maritime law.

Oil Prices Surge, Markets React

The renewed fighting sent oil prices sharply higher. Brent crude futures surged 6.8%, approaching $90 per barrel at midday GMT — recovering from the mid-$80s where they had settled after Trump called off the bombing campaign over the weekend. Brent had briefly topped $100 last week for the first time since May.

The ceasefire agreement between the US and Iran reached in June has effectively collapsed. Fighting resumed earlier this month after the deal broke down over the unresolved question of Hormuz control. With no diplomatic solution in sight and the conflict now extending into Iraqi territory and drawing in Saudi Arabia directly, fears of a broader regional war are mounting.