June 3, 2026 — Iran’s Islamic Revolutionary Guard Corps (IRGC) launched a coordinated missile and drone assault on U.S. military facilities in Kuwait and Bahrain early Wednesday, drawing immediate U.S. retaliatory strikes on Iranian soil. The escalation has severely disrupted global energy markets and brought shipping through the Strait of Hormuz to a near standstill.
Attacks and Retaliation
The IRGC stated the operation was a response to prior U.S. military actions. In Kuwait, the attack damaged the passenger terminal at Kuwait International Airport, killing one Indian national and injuring 63 others. Commercial flights were suspended and diverted to Dammam, Saudi Arabia.
In Bahrain, the U.S. Fifth Fleet headquarters was targeted. U.S. Central Command (CENTCOM) confirmed its air defenses intercepted incoming missiles and retaliated by striking military installations on Iran’s Qeshm Island. CENTCOM reported no substantial damage to U.S. bases.
Diplomatic Fallout
Tehran maintained its strikes targeted U.S. assets rather than the sovereign territories of host nations, though its Foreign Ministry acknowledged that negotiations with Washington have stalled despite open communication channels.
Regional backlash was swift. Kuwait expelled two Iranian diplomats in protest. Meanwhile, Saudi Arabia, the UAE, Qatar, and Jordan issued a joint condemnation, citing violations of international law and urging restraint.
In Washington, Secretary of State Marco Rubio told the Senate that an agreement with Iran remains “close,” though he provided no specifics. CENTCOM characterized the Qeshm Island strikes as defensive measures.
Energy Markets and Shipping Paralysis
The geopolitical shockwave pushed Brent crude up nearly 2%, hovering near $98 a barrel. The surge is heavily driven by the sharp decline in transit through the Strait of Hormuz, a critical chokepoint handling roughly 20% of the global oil supply.
Maritime data reveals a precipitous drop in transit since March. Vessel traffic has plummeted by over 95%, with daily transits falling from a pre-conflict average of 138 to just 5 or 6. Daily throughput collapsed from 10.3 million deadweight tons to roughly 515,000. In early May, commercial traffic hit historic lows, with 48-hour periods recording zero transits.