Saudi Arabia’s strikes in Iraq mark entry into U.S.-Iran war

Saudi Arabia has conducted aerial strikes in Iraq’s Diyala province, according to a New York Times report. This military action marks an escalation in the ongoing regional conflict involving Iran, the United States, and their respective allies. The strikes targeted Iran-backed militias, indicating Saudi Arabia’s deeper involvement beyond its defensive posture. This development is part of a broader regional conflict that began with U.S. and Israeli attacks on Iran earlier this year. The military engagement has since expanded to include multiple countries in the Middle East, highlighting the complex geopolitical dynamics at play. Key Takeaways Saudi Arabia’s strikes in Iraq suggest increased involvement in the regional conflict, consistent with scenarios where Saudi Arabia expands its military actions against Iran-backed groups. Market pricing implies a heightened likelihood of Iranian military action against Gulf states, with a notable increase in the probability for July 30. The escalation in military activities could indicate a broader proxy conflict between Saudi Arabia and Iran within Iraq. What to Watch Observers should monitor further military actions from Saudi Arabia and pot...