The war in Iran has entered a new phase as Saudi Arabia, coordinating with the United States, launched strikes inside Iraq against armed groups tied to Tehran—even as a memorandum of understanding to halt broader fighting remains under negotiation. Main Developments Riyadh accused the Popular Mobilisation Forces (PMF), an Iraqi paramilitary group with links to Iran, of attacking Saudi oil facilities. In response, Saudi and U.S. forces carried out coordinated strikes targeting PMF positions inside Iraqi territory. Read also: Why Ice Is the Coolest Tool for Beating a Heatwave One PMF faction has now issued an ultimatum to the Iraqi government, demanding a response to the Saudi attacks within one week. The development raises the risk of a direct confrontation between Riyadh and Baghdad-based militias. Background The Popular Mobilisation Forces were formed in 2014 to fight the Islamic State group and have since become a powerful political and military bloc in Iraq, with deep ties to Iran. Previous cross-border tensions have included drone and missile attacks on Saudi oil infrastructure, which Riyadh has blamed on Iran-aligned groups. A memorandum of understanding aimed at de-escalating the broader war with Iran is still officially in progress, though these strikes demonstrate that military operations continue alongside diplomatic efforts. Why It Matters This escalation threatens to pull Saudi Arabia deeper into a conflict that has largely been framed as a U.S.-Iran confrontation. Iraq now finds itself caught between its security ties to Washington and its political and military connections to Tehran. If the PMF ultimatum triggers further Iraqi retaliation, the fragile ceasefire process could collapse entirely. The strikes also risk alienating the Iraqi government, which was not consulted before foreign forces bombed its territory. What's Next The Iraqi government faces a difficult week ahead as it weighs how to respond to both the PMF demand and the Saudi-U.S. operation. Diplomatic channels remain open, but the memorandum of understanding's viability is now in serious doubt. Further strikes or retaliatory attacks could widen the theater of war beyond Iran's borders, drawing in Iraqi militias and Saudi forces in a direct exchange that neither side has publicly sought.