US-Iran Conflict Spreads Across Middle East, Global Oil Prices Soar

A widening conflict between the US and Iran has expanded across at least five Middle Eastern countries, including Saudi Arabia, Iraq, Yemen, Jordan, and Egypt. The escalation began with joint airstrikes in Iraq conducted by Saudi Arabia and the US against Iranian-backed forces, killing at least 20 fighters.

The strikes were a response to drone attacks on Saudi oil infrastructure on July 27, 2026, which Riyadh blamed on Iraqi-based militias. However, Iraqi leadership denied prior knowledge of the strikes.

The economic impact has been severe, with Iran blocking the Strait of Hormuz and forcing global oil prices above $90 per barrel. Saudi Arabia's gross domestic product fell by nearly 5 percent in the second quarter of 2026.