Saudi Arabia has entered the U.S.-Iran conflict by launching joint airstrikes with the United States against Iran-backed militias in eastern Iraq. The strikes, which killed and wounded several people, follow drone and missile attacks on Saudi oil facilities in Jazan and Abqaiq by Iraqi militias and Yemeni Houthis. This military escalation threatens Saudi Arabia's Vision 2030 economic plans, which have already suffered from a major quarterly deficit, and effectively ends the 2023 China-mediated détente between Riyadh and Tehran.
Saudi strikes on Iraqi militias
- ▪Iraqi Prime Minister Ali al-Zaidi condemned the airstrikes on Iraqi territory, calling them an unacceptable aggression
- ▪Saudi Arabia and the United States carried out joint airstrikes against Iran-backed militias in eastern Iraq early on July 28, 2026
- ▪The Popular Mobilization Forces in Iraq reported that a number of people were killed and wounded in the joint Saudi-US airstrikes
- ▪The Saudi Defense Ministry stated the airstrikes in Iraq targeted militias linked to recent attacks on petroleum facilities in Saudi Arabia
Houthi attacks on oil facilities
- ▪The Houthis announced a blockade of Saudi shipping transiting the Bab al-Mandeb chokepoint and attacked two Saudi tankers in the Red Sea
- ▪Yemeni Houthi militants fired missiles at two Saudi Arabian oil complexes on the Red Sea coast, causing extensive damage to a facility at Jazan
Saudi economic vulnerabilities
- ▪Saudi Arabia recorded its largest quarterly deficit since 2018 in the first three months of 2026 due to increased war-related spending
- ▪Houthi disruption of the Bab al-Mandeb strait exposes three-quarters of Saudi Arabia's planned Red Sea oil exports to risk
- ▪Saudi Arabia's Vision 2030 economic diversification plans are threatened by recurring drone and missile attacks on critical national infrastructure
Iran-backed proxy coordination
- ▪US Central Command stated that the Popular Mobilization Forces in Iraq have directed over 30 drone attacks against Saudi Arabia
- ▪Pro-Iranian militias in Iraq launched two barrages of drones targeting critical Saudi infrastructure and Riyadh on July 27 and July 28, 2026
Saudi-Iran détente collapse
- ▪The 2023 China-mediated détente agreement between Saudi Arabia and Iran is severely strained as Saudi Arabia faces threats from Iranian proxies
- ▪Iran's foreign ministry accused Gulf nations of participating in military attacks on Iran, stating the United States is responsible
US-Saudi military cooperation concerns
- ▪Saudi Arabia and the United Arab Emirates are working to repair relations damaged by differences over OPEC and the Yemen conflict
- ▪Saudi officials express apprehension about being left alone to face a belligerent Iran once United States interest in the region wanes
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