Iranian troops using mountain warfare built up their forces on the heights surrounding the city. On June 30, they launched Operation Karbala 1, recapturing the area by July 3. Saddam ordered the Republican Guard to retake the city on July 4, but their attack was thoroughly defeated. The Iraqi losses were so heavy the Iranians managed to capture some territory inside of Iraq as well. Iraq's defeats at al-Faw and at Mehran was a severe blow to the prestige of the Iraqi regime. The western powers including the U.S. also became more determined to prevent an Iraqi loss.