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US strikes Iran as widening war engulfs more countries - Headlines news and analysis from Global Banking & Finance Review
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US strikes Iran as widening war engulfs more countries

Published by Global Banking & Finance Review

Posted on July 29, 2026

5 min read

· Last updated: July 30, 2026

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US strikes Iran as widening war engulfs more countries

Escalation of Conflict and Regional Involvement

By Marwa Rashad, Mohamed Ezz, Yasmine Ghania and Nandita Bose

LONDON/CAIRO/WASHINGTON, July 29 (Reuters) - The U.S. carried out fresh strikes in Iran on Wednesday, the U.S. military said, further intensifying a five-month-old war that was already expanding beyond its main fronts to embroil additional countries in the region.

"U.S. forces began launching strikes against Iran at 8:00 p.m. ET today (0000 GMT)," U.S. Central Command said in a statement.

"The strikes are a powerful response to yesterday's attempted Iranian attacks on U.S. forces based in the Middle East."

Attacks on Strategic Targets

Earlier on Wednesday, a drone hit a U.S.-owned gas storage tanker at Egypt's Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment, while U.S. and Saudi forces launched strikes against Iran-aligned groups in eastern Iraq and Iran fired missiles at U.S. troops in Jordan.

A statement from Egypt's petroleum ministry confirmed a fire at the port but made no mention of a drone attack. It was not immediately clear who was responsible.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict, after the Iran-aligned Houthis in Yemen last week declared a naval blockade on Saudi Arabia.

US Retaliation and Political Response

The U.S. strikes in Iran on Wednesday followed President Donald Trump's vow earlier in the day to retaliate against Iran for firing on U.S. troops.

"So it's our turn," Trump told reporters at the White House, promising to "hit them very hard" even as he again said Washington would continue to aim for a peace deal with Tehran.

Iran confirmed overnight that it had fired on U.S. bases in Jordan and at ships in the Strait of Hormuz, and also spurned an Omani proposal to jointly manage the strait, a critical global shipping route for oil and gas.

Origins and Timeline of the War

The war began in February, when the U.S. and Israel launched a bombing campaign in Iran that Trump said would last only a few weeks. A temporary ceasefire agreement in June collapsed amid renewed fighting over the strait, which Iran says it now controls.

Oil prices shot up on Wednesday in one of the sharpest spikes of the five-month war. Brent crude futures rose more than 8% to push the benchmark well above $90 a barrel, reversing much of a plunge earlier this week when Trump had unexpectedly halted U.S. strikes.

'Death to America' Shouted in Iraq

The joint U.S.-Saudi attacks marked the first time Riyadh has publicly joined strikes alongside Washington. 

Iraq's Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in U.S.-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted "Death to America!" as they carried the bodies of slain fighters in body bags.

Retaliation and Diplomatic Efforts

Washington and Riyadh said they struck Iran-backed armed groups in Iraq in retaliation for drone attacks on Saudi oil targets launched from Iraq.

After the joint attacks, Saudi Arabia's defense minister met with Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate the conflict further by attacking Yemen's Houthis and carrying out additional strikes against the Iran-aligned militias in Iraq, two sources told Reuters.

One of the sources added that such escalation would open the door to "major unknown risks." The White House and Saudi embassy in Washington did not immediately respond to a request for comment.

U.S. officials have privately cautioned that resuming major combat operations against Iran would carry risk given the negative impact on stocks of munitions.

Military Capabilities and Losses

The Center for Strategic and International Studies, a Washington-based think tank, estimated this week that the U.S. military has fewer than 1,000 Patriot interceptor missiles and fewer than 250 THAAD interceptors -- two key air defense systems.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four Iranian Revolutionary Guards advisers had been killed in the strikes on Iraq.

Iraq's Dangerous Rift

The strikes on Iraq expose a dangerous rift in that volatile country. The Shi'ite-led government is one of the few in the world to balance close military and diplomatic ties with both Tehran and Washington, but those divided loyalties are a constant source of tension and frequent domestic unrest.

The office of Prime Minister Ali al-Zaidi, who took power just two months ago, urged the parties involved to avoid escalation and said he wanted to keep the country out of regional conflicts.

The Iraqi presidency denounced the strikes on the paramilitaries as "an unacceptable attack and a flagrant violation of Iraq's sovereignty", while also calling for a halt to attacks by armed groups against Iraq's neighbours.

Religious and Regional Ties

The deep ties between Iran and Iraq, the two biggest Shi'ite-majority countries, are on display this week as hundreds of thousands of Iranian religious pilgrims head to shrines in Iraq for an annual observance of mourning for martyrs. 

Recent Military Developments

Hours before launching the attacks on Iraq, the U.S. military said its air defences had averted a surprise Iranian attack on U.S. troops in the region.

Jordan's military said it had shot down five Iranian missiles. U.S. bases in Jordan have lately become primary Iranian targets, where three U.S. service members were killed this month in the worst U.S. losses since March.

Iran's Revolutionary Guards said they had fired several ballistic missiles at U.S. military installations in Jordan, and had struck three tankers that were attempting to transit through the Strait of Hormuz along an unauthorised route.

Reporting and Editing

(Reporting by Reuters bureauxWriting by Peter Graff, Idrees Ali and Joseph Ax; Editing by Toby Chopra

Key Takeaways

  • US and Saudi strikes targeted sites in Iraq used for launching drone attacks on Saudi oil facilities, marking a sharp escalation in regional hostilities. (apnews.com)
  • Oman has floated a proposal to Iran for a joint regional management system of the Strait of Hormuz, modeled after the Malacca Strait, emphasizing voluntary fees and joint oversight to enhance maritime security. (ca.investing.com)
  • Oil markets responded with renewed volatility amid the strikes: earlier in the week, Brent had dipped beneath $88 a barrel following a US pause in strikes, though tensions and broader geopolitical risk continue to weigh on prices. (theguardian.com)

References

Frequently Asked Questions

Why did the US and Saudi Arabia launch strikes in Iraq?
They targeted Iran-backed groups in response to drone attacks on Saudi oil facilities and ongoing regional hostilities.
What was Iran's response to the accusations?
Iran denied involvement in the attacks and warned the US and Saudi Arabia that blaming Iran was a major miscalculation.
How did the strikes impact oil prices?
Oil prices rose over $3 a barrel amid concerns that the conflict could escalate further.
What proposal did Oman make regarding the Strait of Hormuz?
Oman proposed a joint management plan for the Strait of Hormuz, with voluntary fees collected from passing ships, backed by Gulf states.
What was targeted during the US-Saudi strikes in Iraq?
Multiple sites in eastern Iraq used by Iran to direct drone attacks were targeted, and headquarters of Iraq's Popular Mobilisation Forces were hit.

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