We develop a non-equilibrium field-theoretical approach based on a systematic
diagrammatic expansion for strongly interacting photons in optically dense
atomic media. We consider the case where the characteristic photon-propagation
range LP is much larger than the interatomic spacing a and where the
density of atomic excitations is low enough to neglect saturation effects. In
the highly polarizable medium the photons experience nonlinearities through the
interactions they inherit from the atoms. If the atom-atom interaction range
LE is also large compared to a, we show that the subclass of diagrams
describing scattering processes with momentum transfer between photons is
suppressed by a factor a/LE. We are then able to perform a self-consistent
resummation of a specific (Hartree-like) diagram subclass and obtain
quantitative results in the highly non-perturbative regime of large single-atom
cooperativity. Here we find important, conceptually new collective phenomena
emerging due to the dissipative nature of the interactions, which even give
rise to novel phase transitions. The robustness of these is investigated by
inclusion of the leading corrections in a/LE. We consider specific
applications to photons propagating under EIT conditions along waveguides near
atomic arrays as well as within Rydberg ensembles.Comment: 72 pages, 36 figure