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Iranian Missiles Intercepted, Oil Markets Rise After Brief Lull

Published Jul 29, 2026
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Summary:
  • Iran launched multiple ballistic missiles targeting U.S. military bases in the Middle East, but all were intercepted by American forces.
  • The attack ended a two-day pause in fighting and sent oil prices surging after three straight days of declines.
  • Experts warn that a potential closure of the Bab el-Mandeb Strait in the Red Sea could block critical oil shipments.

Missile Attack Comes After Brief Calm

Late Tuesday, U.S. Central Command reported that Iran launched ballistic missiles targeting American troops in the Middle East. In a message on X, CENTCOM stated that the missiles were fired from Iran but were all intercepted.

CENTCOM stated, "Islamic Revolutionary Guard Corps forces launched multiple ballistic missiles from Iran in an attempted surprise attack on U.S. forces based in the Middle East."

Although CENTCOM did not disclose the target location, Axios reported, citing U.S. officials, that the missiles were aimed at a U.S. base in Jordan. Later, CENTCOM posted on X that U.S. and Saudi forces had launched strikes on "multiple terrorist logistics and weapons sites" in eastern Iraq on Tuesday, in retaliation for over 30 drone attacks by "Iran-aligned terrorists" over the previous three days.

The Saudi Defense Ministry stated that the strikes happened in coordination with CENTCOM, and emphasized that Riyadh does not want escalation but will retaliate against any attack. Earlier, Riyadh announced that drones launched from Iraq by "Iran-affiliated terrorist militias" had tried to strike Saudi oil facilities.

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Later Tuesday, the Iran-aligned Iraqi Mobilization Forces reported that the strikes had killed at least 20 of its fighters and wounded 32.

According to The New York Times, President Trump had shelved plans to intensify conflict with Iran due to concerns about low supplies of Patriot interceptors and other air-defense munitions in the region. Trump himself had brushed aside worries about depleted stockpiles.

Reuters reported Sunday, citing a senior Iranian official, that Tehran had signaled it would cease attacks if the U.S. did not strike.

Red Sea Tensions Add to Supply Concerns

In a post on X, the UK Maritime Trade Operations Centre reported "suspicious activity" in the Red Sea. The agency stated that a tanker's master heard an explosion while sailing in the southern Red Sea, but provided no further details. The incident occurred on Monday, and the advisory was released on Tuesday.

Though it remains unclear whether Houthi rebels were behind the latest incident, the group had previously claimed responsibility for attacking two Saudi oil tankers last week, and Saudi forces struck back against them.

The Bab el-Mandeb Strait acts as an essential Red Sea passage for Saudi crude exports that avoid the Strait of Hormuz, and it also serves as a major chokepoint for merchant ships.

Tensions between Iran and the United States have been simmering for months, with periodic exchanges of strikes and drone attacks. The conflict has drawn in regional proxies like the Houthis in Yemen and Iraqi militias, further destabilizing key energy transit routes. This broader pattern of retaliation and proxy warfare has repeatedly threatened oil infrastructure and shipping lanes, keeping global energy markets on edge. Continued violence could force further military responses and risk longer-term disruptions to crude flows from the region.

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