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NewsKPBS Public MediaJuly 29, 2026United States

Escalating Military Conflict in the Middle East Impacts Global Oil Markets

Iran launched missile attacks on U.S. forces in the Middle East, while U.S. and Saudi forces conducted retaliatory airstrikes against Iran-backed militias in Iraq. The renewed hostilities have disrupted shipping in the Strait of Hormuz and caused global oil prices to rise.

international relationsmilitary conflictenergy marketsMiddle Eastoil prices
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Why It Matters

The conflict has caused oil prices to jump 3.1% to $84.58 per barrel and threatens the stability of global energy supply chains passing through the .

Key Facts

  • Iran launched ballistic missiles at the Muwaffaq Salti Air Base and U.S. Central Command headquarters in Jordan.
  • U.S. and Saudi fighter aircraft struck logistics and weapons sites in eastern Iraq.
  • At least 20 fighters were killed and 32 others wounded in the U.S.-Saudi strikes on Iraqi militias.
  • Brent crude oil prices rose 3.1% to $84.58 per barrel following the hostilities.
  • The Jazan oil refinery in Saudi Arabia shut down due to damage from a Houthi attack, affecting 400,000 barrels per day.
  • Jordan's military intercepted and destroyed five Iranian missiles.
  • Iraqi Prime Minister Ali al-Zaidi postponed a scheduled visit to Saudi Arabia indefinitely.
  • The Strait of Hormuz remains effectively closed to shipping due to Iranian attacks.
  • The Houthi rebels declared a blockade of Saudi shipping in the Bab el-Mandeb strait.
  • Repairs for the damaged Jazan refinery are expected to be completed by Aug. 15.

Who's Mentioned

otherIran“Nation involved in missile attacks and regional conflict.”personNizar Amidi“President of Iraq.”otherSaudi Arabia“Nation partnering with the U.S. in airstrikes and facing drone attacks.”personAli al-Zaidi“Prime Minister of Iraq.”personKazem Gharibabadi“Iran's deputy foreign minister.”otherUnited States“Nation involved in military strikes and base defense.”locationIraq“Site of U.S.-Saudi airstrikes and home to militias.”organizationHouthi rebels“Iran-backed group in Yemen attacking Saudi facilities.”organizationPopular Mobilization Forces“Coalition of Iran-backed armed groups in Iraq.”