Middle East War Update: New Threats in Iraq - Oil Prices Surge Wildly
Escalation of the war in the Middle East continues to show increasing intensity in recent days. A series of military attacks, mutual threats between countries, and involvement of militia groups indicate that the conflict is widening and becoming more complex.
On the other hand, this tension is also beginning to shake global markets. This is evident from the sharp surge in world oil prices due to concerns over disruptions to energy supplies, particularly from strategic areas like the Strait of Hormuz.
Here is the latest update regarding the situation in Iran, as compiled by CNBC Indonesia on Thursday (2/4/2026).
China bluntly states cause of war
China accuses US and Israeli military operations against Iran as the main trigger for disruptions in shipping routes through the Strait of Hormuz.
“The root cause of the disruption to navigation through the Strait of Hormuz is the illegal military operations by the United States and Israel against Iran,” said spokesperson for China’s Ministry of Foreign Affairs, Mao Ning, during a press conference, as quoted by AFP.
She also emphasised that a military approach will not fundamentally resolve the conflict. “The relevant parties must immediately cease military operations,” she said.
Oil prices soar
Geopolitical tensions are driving a surge in world oil prices. Brent crude rose nearly 7% to US$108.15 per barrel, or around Rp1.73 million. Meanwhile, West Texas Intermediate (WTI) jumped more than 6% to US$106.75, or around Rp1.71 million per barrel.
This surge is triggered by market concerns over global supply disruptions, particularly due to the potential closure of the Strait of Hormuz.
US warns of threats in Iraq
The US Embassy has warned of potential attacks by pro-Iran militias in Iraq in the near future.
“Iraqi terrorist militia groups allied with Iran may intend to carry out attacks in central Baghdad in the next 24-48 hours,” stated the embassy’s official statement, urging its citizens to leave Iraq immediately.
Iran threatens retaliatory strikes
Iran’s military vows to launch major attacks against the US and Israel following threats from President Donald Trump.
“This war will continue until your humiliation, disgrace, permanent regret, and surrender,” stated the Khatam Al-Anbiya Operational Command, broadcast on Iranian state television.
Hezbollah claims attack on Israel
The Hezbollah group in Lebanon claims to have launched drones and rockets into northern Israel, targeting military forces and a village.
The Israeli military stated that air raid sirens were activated in the border area, but there were no reports of casualties or damage.
Israel bombarded with missiles
Israel reports that Iran has again launched waves of missile attacks, including after Trump’s speech on the conflict.
Police reported several impact points in central Israel, while local media mentioned four people with minor injuries.
Australia highlights uncertainty over war’s end
Australian Prime Minister Anthony Albanese assesses that the initial objectives of military operations in Iran have been achieved, but the next direction is unclear.
“Now those objectives have been realised, it is unclear what more needs to be achieved or what the endpoint looks like,” he said in a speech in Canberra.
Trump promises continued attacks
In his speech from the White House, Trump stated that the US is nearly achieving victory and will continue attacks in the coming weeks.
“We will finish this job very quickly. We are very close,” he said.
UAE intercepts missile threats
The United Arab Emirates reports that its air defence system has responded to missile and drone threats in its territory.
Since the conflict intensified, Gulf countries including the UAE have become targets of Iranian retaliatory attacks.
Iran rejects US demands
Iran asserts that Washington’s demands are unreasonable and denies any direct negotiations regarding a ceasefire.
“The message has been received through intermediaries, including Pakistan, but there are no direct negotiations with the US,” said spokesperson for Iran’s Ministry of Foreign Affairs, Esmaeil Baqaei.