US-Saudi strikes on Iran-backed groups in Iraq
Analysis based on 9 articles · First reported Jul 28, 2026 · Last updated Jul 29, 2026
Oil prices surged over $3 per barrel due to heightened geopolitical tensions and fears of supply disruptions from the Strait of Hormuz. The conflict escalation threatens global energy markets and shipping routes, with potential for further price volatility.
On July 29, 2026, the United States and Saudi Arabia launched strikes on Iran-backed groups in eastern Iraq, targeting sites used to direct drone attacks on Saudi oil facilities. The strikes came after Saudi air defenses destroyed several drones targeting oil facilities in its Eastern Province. In response, Iran's Islamic Revolutionary Guard Corps (IRGC) claimed to have struck three oil tankers in the Strait of Hormuz and fired ballistic missiles at U.S. military installations in Jordan, which were intercepted. The back-and-forth attacks ended a brief pause in fighting after U.S. President Donald Trump called off a two-week bombing campaign. Meanwhile, Oman proposed a regional deal to jointly manage the Strait of Hormuz with voluntary fees, but the U.S. rejected any tolls. Oil prices rose over $3 per barrel on concerns of escalation. Iraq's Popular Mobilization Forces reported casualties and damage from the strikes. Iran denied involvement in attacks on Saudi targets, calling accusations a 'major miscalculation'.
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