US and Saudi Arabian forces said they struck Iran-backed militants in Iraq on Wednesday in retaliation for recent attacks, following a short pause in Iran war hostilities. The combined air operation came as President Donald Trump met with his Israeli counterpart Benjamin Netanyahu in Washington for their first in-person talks since the Middle East war began in late February. Crude oil prices leapt more than four percent as the fresh Middle East flare-up revived fears over global supplies usually shipped through the pivotal Strait of Hormuz.

Attacks come as Saudi Arabia intercepts drones and Iran warns of 'any action' to maintain its control of Hormuz.

Iran-backed militants in Iraq recently launched over two dozen drone attacks on US forces and Saudi energy infrastructure.

US intercepts Iranian missiles amid escalating tensions, causing crude oil prices to surge as diplomatic efforts continue.