Kuwait temporarily closed its airspace and Bahrain activated its air defences on Thursday as US strikes on Iran triggered a wave of retaliatory attacks across the Gulf, raising fears of a broader regional war. Oil prices climbed sharply and American stock futures fell as the violence escalated.
The confrontation marks one of the most serious military escalations in the Middle East in years. At its centre is a back-and-forth exchange of strikes between Washington and Tehran that has drawn in neighbouring countries and placed commercial shipping routes under direct threat.
What Happened: Strikes, Closures and Retaliations
Kuwait said it shut its airspace after intercepting what it described as ‘hostile aerial targets’ linked to ‘Iranian aggressions’. Iran’s state-run Tasnim news agency claimed Iran ‘struck and destroyed eighteen important targets’ belonging to US forces at Kuwait’s Ali Salem and Ahmad al-Jaber air bases, as well as the Sheikh Issa air base in Bahrain. Kuwait later reopened its airspace after several hours.
Bahrain’s response was swift. The media adviser to Bahrain’s king confirmed that the country’s air defence systems had intercepted and destroyed ‘Iranian aerial attacks’. Earlier in the day, Bahrain’s interior ministry had urged civilians to move to a safe place.
Israel’s Home Front Command issued warnings of launches from Lebanon toward communities in northern Israel, widening the geographic scope of the crisis further still.
US Central Command (Centcom) said its own strikes against Iran were completed at 9:04 p.m. ET on Wednesday, targeting Iranian military surveillance capabilities, communication systems and air defence sites. Centcom said US forces struck targets that ‘posed a threat to US forces and international commercial ships transiting regional waters.’ The operation was carried out at President Donald Trump’s direction, following what the White House described as ‘Iran’s unwarranted and continued aggression.’
The Strait of Hormuz: A Chokepoint Under Threat
Among the most alarming developments has been Iran’s posture over the Strait of Hormuz, one of the world’s most critical shipping lanes. Reuters reported that Iran’s top military command completely closed the strait, warning that any vessel attempting to cross would be targeted. Iranian state media also reported that Iran had struck US ships in the strait with missiles and drones.
This is not an isolated incident. According to Congress.gov, Iranian forces declared the Strait of Hormuz closed starting 4 March 2026, and have since threatened and carried out attacks on ships attempting to transit it. The strait carries a substantial share of the world’s oil supply, and its closure, even partial, sends shockwaves through energy markets.
Oil prices reflected that anxiety. US crude climbed nearly 2% to $89.72 per barrel, while Brent rose 1.3% to $92.74. The Dow Jones Industrial Average dropped more than 600 points following Trump’s public remarks. Claudio Galimberti, chief economist at Rystad Energy, told CNBC earlier this week that oil could hit $150 per barrel within the next couple of months if the fighting in the Middle East continues, as inventories are now at very low levels.
Trump Signals Pause but Leaves Door Open
Trump told Fox News that he had spoken directly with Iranian officials, who he said asked him to stop the strikes. He said the bombing would stop shortly and that Israel was not involved, but he left the door open for further military action. In response to a question about whether a ceasefire was over, Trump reportedly said it was the most violated ceasefire in history.
Earlier on Wednesday, Trump had struck a hawkish tone at a White House signing event. ‘We hit them hard yesterday, and we’re going to hit them hard again today,’ he said. ‘We’re going to be attacking them and attacking them very hard.’ He urged Iran to ‘sign the deal’, saying the US wants an agreement ‘that’s meaningful and works.’
Iran’s response was pointed. Ebrahim Azizi, head of the national security commission in Iran’s parliament, wrote that ‘this time, the war won’t be limited to the region’, in a post on X. Iran has not directly claimed responsibility for downing a US Army Apache helicopter, the incident Centcom cited as the trigger for Tuesday’s initial US strikes. Iranian state broadcaster IRIB reported that no offensive military operations had been carried out in the strait in the 24 hours prior to that claim.
Trump said he expects oil prices to return to pre-war levels once the military operation concludes: ‘When it’s over, you will see oil drop to where it was before.’ Markets, for now, are pricing in a very different outcome.
