{"id":65613,"date":"2026-07-29T11:38:15","date_gmt":"2026-07-29T15:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-us-saudi-forces-strike-iraq-markets-brace-for-fed-decision\/65613\/"},"modified":"2026-07-29T11:38:15","modified_gmt":"2026-07-29T15:38:15","slug":"middle-east-tensions-escalate-as-us-saudi-forces-strike-iraq-markets-brace-for-fed-decision","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-us-saudi-forces-strike-iraq-markets-brace-for-fed-decision\/65613\/","title":{"rendered":"Middle East Tensions Escalate as US-Saudi Forces Strike Iraq; Markets Brace for Fed Decision"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Geopolitical Volatility Spikes:<\/strong> Joint <strong>U.S. and Saudi Arabian<\/strong> airstrikes targeted Iran-backed militants in <strong>Iraq<\/strong> following a wave of drone attacks, pushing <strong>Brent crude<\/strong> prices up over <strong>4%<\/strong> to approximately <strong>$87.50<\/strong> per barrel.<\/li>\n<li><strong>Nuclear Concerns Resurface:<\/strong> Senior Israeli officials report that Iran has moved advanced centrifuges to the underground <strong>Mount Pickaxe<\/strong> facility, though <a href=\"https:\/\/stockmarketwatch.com\/metal\/uranium\" data-internallinksmanager029f6b8e52c=\"13\" title=\"Uranium\">uranium<\/a> enrichment has reportedly not yet commenced at the site.<\/li>\n<li><strong>Amazon Expands Streaming Value:<\/strong> Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) launched a new <strong>Starz<\/strong> (<a href=\"\/stock\/STRZ\">STRZ<\/a>) and <strong>Crunchyroll<\/strong> bundle on <strong>Prime Video<\/strong> for <strong>$16.99 per month<\/strong>, offering a <strong>23% discount<\/strong> compared to standalone subscriptions.<\/li>\n<li><strong>Strategic Reserves at Historic Lows:<\/strong> The <strong>U.S. Strategic Petroleum Reserve (SPR)<\/strong> has fallen to its lowest level since <strong>1983<\/strong>, hitting approximately <strong>307.7 million barrels<\/strong> amid ongoing emergency releases.<\/li>\n<li><strong>Mixed Market Sentiment:<\/strong> European markets showed divergence as strong corporate earnings from banks and luxury brands like <strong>Kering<\/strong> countered fears of a hawkish <strong>Federal Reserve<\/strong> decision and rising energy costs.<\/li>\n<\/ul>\n<h2>Middle East Conflict and Energy Impact<\/h2>\n<p>Tensions in the Persian Gulf reached a new peak on July 29, 2026, as <strong>U.S. Central Command (CENTCOM)<\/strong> confirmed that <strong>U.S. and Saudi forces<\/strong> conducted precision strikes against <strong>Kataib Hezbollah<\/strong> and other Iran-aligned groups in <strong>Iraq<\/strong>. The strikes were a direct response to more than <strong>30 drone attacks<\/strong> directed by Iran\u2019s <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> over the previous 72 hours. In retaliation, <strong>Kataib Hezbollah<\/strong> issued a deadline of <strong>August 6<\/strong> for the Iraqi government to safeguard its sovereignty, threatening to target U.S. &quot;tools&quot; within <strong>Saudi Arabia<\/strong>.<\/p>\n<p>The maritime security situation remains critical as the <strong>IRGC<\/strong> continues to demand that international mariners follow Iranian-preferred routes in the <strong>Strait of Hormuz<\/strong>. <strong>CENTCOM<\/strong> has dismissed these claims, asserting that the strait is an international waterway and noting that U.S. forces have assisted approximately <strong>1,000 vessels<\/strong> and <strong>500 million barrels of <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">crude oil<\/a><\/strong> in transiting the passage since May. Despite these efforts, the <strong>U.S. Strategic Petroleum Reserve<\/strong> has been depleted to levels not seen in over 40 years to mitigate supply shocks.<\/p>\n<h2>Diplomatic and Nuclear Developments<\/h2>\n<p>In Washington, Prime Minister <strong>Benjamin Netanyahu<\/strong> met with President <strong>Donald Trump<\/strong> to discuss the &quot;next phase&quot; of the campaign against Iran. A senior Israeli diplomatic source revealed that the talks focused on three primary options: a new <strong>nuclear deal<\/strong>, an intensified <strong>economic blockade<\/strong>, or renewed <strong>military strikes<\/strong>. While Israel has not explicitly demanded a strike, officials emphasized that &quot;Iran is under severe economic pressure,&quot; citing <strong>90% inflation<\/strong> and widespread fuel shortages.<\/p>\n<p>Simultaneously, intelligence reports regarding the <strong>Mount Pickaxe<\/strong> (Kuh-e Kolang Gaz La) facility have sparked international concern. While an Israeli official stated that enrichment has not yet begun, the presence of thousands of advanced centrifuges deep underground suggests Tehran is attempting to shield its nuclear assets from further aerial bombardment.<\/p>\n<h2>Market Reactions and Corporate News<\/h2>\n<p>Global markets are trading with caution ahead of the <strong>Federal Reserve&#39;s<\/strong> interest rate decision. While the consensus expects rates to remain at <strong>3.75%<\/strong>, there is a <strong>33% market-implied probability<\/strong> of a surprise hike. In Europe, the <strong>FTSE 100<\/strong> managed a modest gain of <strong>0.24%<\/strong>, supported by strong earnings from <strong>Standard Chartered<\/strong> (<a href=\"\/stock\/STAN\">STAN<\/a>) and <strong>Rio Tinto<\/strong> (<a href=\"\/stock\/RIO\">RIO<\/a>). Conversely, France&#39;s <strong>CAC 40<\/strong> fell <strong>0.73%<\/strong> and Spain&#39;s <strong>IBEX<\/strong> dropped <strong>1.71%<\/strong>, weighed down by political uncertainty and rising energy prices.<\/p>\n<p>In the technology and media sector, Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) is moving to consolidate its lead in the &quot;streaming wars&quot; by bundling <strong>Starz<\/strong> and <strong>Crunchyroll<\/strong>. This move is seen as a strategic play to capture diverse audiences\u2014specifically women and anime fans\u2014at a time when &quot;streamflation&quot; is driving consumers to seek discounted packages. The bundle, priced at <strong>$16.99<\/strong>, represents a significant pivot toward value-based subscription models.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Geopolitical Volatility Spikes: Joint U.S. and Saudi Arabian airstrikes targeted Iran-backed militants in Iraq following a wave of 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