What war movie set in the middle east has American soldiers or marines running out of ammo a firefight thus being forced to use their knives even though enemies have loaded weapons?

You're likely thinking of the 2001 war film "Black Hawk Down".

In a pivotal scene, a group of American soldiers are pinned down in a street in Mogadishu, Somalia, and run out of ammunition during a fierce firefight with Somali militiamen. Facing overwhelming odds, they are forced to resort to hand-to-hand combat, using knives, bayonets, and anything else they can find as weapons.

This scene, while fictionalized, reflects the brutal realities of urban warfare and the desperate situations soldiers can find themselves in.