Iran military action against a gulf stateSaudi Arabia and the United States have conducted a joint combat strike in Iraq, marking a significant shift in military collaboration against Iran-backed groups. AdvertisementKey TakeawaysThe joint U.S.-Saudi combat strike appears to indicate increased military collaboration against Iranian-backed threats in Iraq. Market pricing indicates a reduced likelihood of Iran conducting military action against a Gulf state in the immediate future. What to WatchObservers will be closely monitoring Iran’s response to the joint strike, as any retaliatory actions could alter regional dynamics. Continued collaboration between the U.S. and Saudi Arabia may further influence market expectations regarding future military actions in the Gulf region.