Kuwait Army Intercepts Missile and Drone Threats as Brent Jumps 3.7% on Renewed US-Iran Attacks
Updated
Updated · Reuters · May 28
Kuwait Army Intercepts Missile and Drone Threats as Brent Jumps 3.7% on Renewed US-Iran Attacks
6 articles · Updated · Reuters · May 28
Kuwait's army said its air defenses were intercepting hostile missiles and drones on Thursday, signaling the U.S.-Iran ceasefire is breaking down and regional risks are spreading.
Brent crude climbed 3.7% to $97.79 after Iran's Revolutionary Guards said they struck a U.S. airbase and warned any further U.S. attacks would bring a "more decisive response."
Asian markets sold off as the conflict deepened: MSCI's Asia-Pacific ex-Japan index fell 1.8%, South Korea's KOSPI dropped 2.7%, and U.S. stock futures also turned lower.
Safe-haven demand lifted the dollar index 0.2% to 99.506, while the U.S. 10-year yield rose 5.1 basis points to 4.53% on renewed inflation fears from higher energy prices.
The United States also imposed fresh Iran-related sanctions tied to the Strait of Hormuz, while ECB chief economist Philip Lane warned the energy shock could leave a lasting inflation impact even if the war eases.
With oil over $100 and a key strait threatened, can the global economy withstand a prolonged energy crisis?
As nuclear talks falter, what prevents the standoff over Iran's enriched uranium from escalating into a regional war?
As Gulf nations forge new alliances, is the era of U.S. dominance in Middle East security ending?
The 2026 Iran War: How Gulf States and Global Energy Markets Were Upended
Overview
The 2026 Iran war began when the U.S. and Israel launched strikes on Iran, quickly escalating into a wider regional conflict. In response, Iran immediately attacked Gulf states, including Kuwait, which was hit by a series of drone and missile assaults. These attacks targeted key infrastructure such as energy facilities, airports, and urban areas, causing casualties and significant damage. Notably, between March 7 and 8, Iran’s strikes on Kuwait led to both injuries and destruction, including a drone hitting a residential building. This rapid escalation highlighted Kuwait’s vulnerability and the broader instability spreading across the region.