Iraqi military forces have sealed off Baghdad's heavily fortified Green Zone following reports of heavy gunfire near the US Embassy compound. The district, which houses foreign embassies and government buildings, is under heightened security.
This follows a familiar pattern of escalation. In March, missiles struck a helipad inside the embassy compound as part of a broader series of assaults including drone strikes and rocket attacks. Some threats were intercepted by air defense systems, while others caused visible damage.
The attacks are widely attributed to Iran-backed militia groups operating in Iraq. The intensity of these assaults often spikes during periods of geopolitical friction between Iran and the US. The US has previously conducted retaliatory strikes against Iran-aligned militias.
For markets, Iraq is a major oil producer. Sustained threats to diplomatic sites signal a deteriorating security environment that can impact global supply calculations. Defense sector stocks also respond to regional instability.