Saudi Arabia Strikes Iranian Proxies in Iraq
Kingdom retaliates against drone attacks amid escalating regional conflict with Iran.
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Saudi Arabia has engaged in joint military action with the United States, targeting Iranian proxy militias operating within Iraq. The Kingdom asserts these groups have been responsible for numerous drone assaults directed at Saudi territory. This development signifies an escalation as Saudi Arabia confronts a multi-front threat.
Regional Conflict Dynamics
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The current regional tensions involve Iran and its allies, including the Houthis in Yemen and the Popular Mobilisation Forces in Iraq, on one side. Opposing them are the US and its allies, including Gulf Arab states and Jordan. Hezbollah in Lebanon is also a factor, though currently less active. Iran has been directing drone and missile attacks towards Jordan, Kuwait, and Bahrain, as well as targeting commercial shipping in the Strait of Hormuz.
The involvement of Iraqi militias and the Houthis represents a recent expansion of the conflict, increasing the risk of wider regional entanglement, according to the BBC. This situation complicates Saudi Arabia's strategic objectives, particularly its ambitious 'Vision 2030' plan.
Economic and Infrastructure Vulnerabilities

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Crown Prince Mohammed Bin Salman's Vision 2030 aims to diversify the Saudi economy away from oil and foster domestic industries, requiring foreign investment and the development of infrastructure, such as data centres. These initiatives are vulnerable to sustained threats from drone and missile attacks. The Kingdom experienced a significant disruption in September 2019 when drones, launched by an Iranian proxy militia in Iraq, struck the Abqaiq and Khurais oil facilities, halting half of Saudi oil exports for several days. Satellite images confirmed that the Abqaiq oil facility was again struck by drones from Iraqi proxy militias on Monday.
Oil remains central to the Saudi economy. Iran's actions in the Strait of Hormuz, a key shipping channel for global oil and gas, prompted Saudi Arabia to reroute its exports through its Red Sea terminal at Yanbu. However, this route is now also under threat.
Escalation and Retaliation
On 13 July, Saudi Arabia bombed Sanaa airport, an action claimed by Yemen's Saudi-supported government to prevent an Iranian plane from landing. In response, the Houthis launched attacks on Saudi airports in Abha and Jizan. More critically for Riyadh, the Houthis have initiated attacks on Saudi shipping in the Red Sea, jeopardising passage through the Bab El Mandeb strait and impacting Saudi oil exports to Asia. Saudi Arabia's previous seven-year military campaign against the Houthis in Yemen did not achieve its objectives. A truce was agreed in 2022, reportedly involving financial settlements, but the threat from the south persists alongside attacks from Iraq.
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