Oil Prices Soar 5% as US-Saudi Strikes Target Iran-Linked Militants

Oil prices surged by over 5% on July 29 after the US and Saudi forces carried out joint strikes against Iran-aligned militant groups in eastern Iraq. The operation, confirmed by the U.S. CENTCOM, targeted Iran-backed militia weapons and logistics sites, marking the first time CENTCOM has publicly announced a joint US-Saudi operation.

The strikes were in response to more than 30 drone attacks over the previous 72 hours by Iran's IRGC-directed PMF militia against US forces and Saudi energy infrastructure. The operation aimed to disrupt these attacks and allow diplomatic talks to resolve the US-Iran conflict and Strait of Hormuz tensions.

Iran's IRGC claimed a surprise attack with multiple ballistic missiles at US forces in the Middle East, but CENTCOM stated that all Iranian missiles were successfully intercepted. Oil prices increased due to concerns about broader regional escalation, causing Brent crude to climb to $85.50.