JERUSALEM (AFP) — Israel launched strikes on Tehran and Beirut Tuesday while attacks in Baghdad pulled Iraq further into the Middle East war that has rattled global markets.

The Israeli military said it targeted “terror regime infrastructure” in Iran’s capital, under near-daily bombardment since a joint US-Israeli strike on 28 February triggered the conflict. Lebanese state media reported Israeli strikes hit a residential building in Hezbollah’s Beirut stronghold, displacing more than 1 million people since early March.

Iraq has been increasingly drawn in. A drone and rocket attack hit the US Embassy in Baghdad, while a separate strike killed four people at a house reportedly hosting Iranian advisers. Earlier, rockets and a drone caused a fire at a hotel used by foreign diplomats.

The conflict has driven oil prices sharply higher and disrupted shipping through the Strait of Hormuz. Repeated strikes on energy infrastructure, including in the UAE and southern Iraq, have fueled global market volatility. Australia raised interest rates Tuesday, citing “sharply higher fuel prices.”

President Donald Trump called on allies to join a naval effort to secure Hormuz. “We strongly encourage the other nations to get involved with us and get involved quickly,” he said, warning refusal would be “very bad” for NATO. Several countries, including Germany, Japan and Australia, have declined military involvement.

Iran has fired hundreds of missiles and thousands of drones at countries hosting US forces. Its health ministry reports more than 1,200 deaths from US and Israeli strikes, though figures are unverified.