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The rare joint operation in Iraq underscores the risk that the Iran conflict could expand. It came after Iran fired missiles at a US. base in Jordan.
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President Donald Trump announced "major combat operations" against Iran on Feb. 28, with massive joint U.S.-Israeli strikes.
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Oil rose sharply amid renewed tensions in the Middle East after Iran launched an attack on U.S. forces using ballistic missiles.
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The attack in the Caspian Sea was an unusually direct encounter between two countries that have been on opposite sides for years.
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Amid a reprieve in the fighting, Iran's leaders are betting that they can endure more pain than President Trump and have leverage over the Strait of Hormuz, analysts say.
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