Former President Donald Trump announced he is canceling planned military strikes on Iran, claiming the parameters of a deal have been reached. The deal requires Iran to reopen the Strait of Hormuz and end its nuclear threat. The move follows a call from Saudi Crown Prince Mohammed bin Salman, who urged de-escalation amid fears of Iranian retaliation on Gulf energy infrastructure and a widening regional conflict.
US-Iran regional conflict escalation
- ▪The cancellation of US strikes is conditional on "rapidly" making a deal with Iran
- ▪Donald Trump announced on social media he would cancel planned military strikes against Iran
- ▪Iran warned it would retaliate decisively against any US strikes and against regional countries that cooperate
- ▪A previous ceasefire in April fell apart in June, leading to escalating strikes and counter-strikes between the US and Iran
- ▪Donald Trump stated that Israel joins the US in its commitment to the potential deal with Iran
- ▪Kuwait's army reported destroying hostile drones launched by Iran against several facilities on its territory on Saturday
- ▪The US State Department issued security alerts for its citizens across the Middle East, warning of potential travel disruptions
Iraq militia strikes
- ▪The US and Saudi Arabia conducted joint airstrikes in Iraq against the Iranian-backed Popular Mobilization Forces (PMF), killing at least 20 fighters
- ▪Saudi officials blamed the Iraqi-based militias for drone attacks against Saudi oil facilities on July 27
Houthi Red Sea disruption
- ▪Iran-backed Houthi rebels in Yemen have attacked ships in the Red Sea, disrupting international shipping
- ▪Houthi attacks have forced Saudi Arabia to reroute nearly half of its oil exports on a longer journey around Africa
Saudi Arabia military response
- ▪Saudi Crown Prince Mohammed bin Salman called Donald Trump on Saturday to express concern about potential US strikes on Iran
- ▪The Saudi Crown Prince urged Donald Trump to de-escalate the conflict and refrain from launching the strikes
- ▪Saudi officials are concerned that US strikes could provoke Iranian retaliatory attacks on the kingdom's energy infrastructure
Economic impact on Gulf states
- ▪Saudi Arabia’s GDP decreased by nearly 5% in the second quarter of 2026 compared to the same period in the previous year
Yemen war history
- ▪A UN-brokered truce between the Government of Yemen and Ansar Allah, the Houthi movement, took effect on April 2, 2022
- ▪In 2015, Saudi Arabia led a military intervention in Yemen's civil war against the Houthi rebels
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