Iran attacks, peace talks threatened.
Iran strikes Bahrain, Kuwait after U.S. airstrikes, threatens to halt peace talks.
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Iran's Revolutionary Guard launched drone and missile strikes against Bahrain and Kuwait early Sunday, targeting eight military sites including the U.S. Fifth Fleet headquarters in Bahrain and the Ali Al Salem air base in Kuwait, according to Lancaster Online. The attacks came hours after U.S. forces hit 10 targets inside Iran in a strike called "Epic Fury," setting off the most dangerous escalation since the 2026 Iran War began in February.
Iran's government then threatened to halt all peace talks, putting the Islamabad Memorandum — a fragile 60-day ceasefire brokered by Pakistan on June 12 — at risk of total collapse. President Trump warned on Truth Social that the U.S. may be "forced to militarily complete the job," adding that "the Islamic Republic of Iran will no longer exist" if that happens, Dayton Daily News reported.
72 Hours That Pushed the Gulf to the Brink
The crisis unfolded in rapid steps. On June 25, an Iranian drone struck the container ship M/V Ever Lovely off Oman's coast. The U.S. hit back the next day, targeting missile and drone storage sites along Iran's coast. Then on June 27, Iranian forces attacked a Panamanian-flagged oil tanker, the Kiku, in the Strait of Hormuz — a waterway that carries 20% of the world's oil and gas, according to Journal-News.
That same evening, U.S. Central Command launched "Epic Fury," striking 10 Iranian targets including coastal radar sites and minelaying equipment. By 2:00 a.m. Sunday, air raid sirens were blaring in Bahrain. Kuwait's military engaged multiple incoming threats. The IRGC claimed it destroyed all eight targeted facilities, though Guard Online reported Kuwait's air defenses intercepted the strikes.
Iran Threatens to Walk Away From Peace Talks
At 7:00 a.m. Sunday, the IRGC issued a formal statement saying the U.S. had violated Clause 1 of the Islamabad Memorandum. A spokesperson said "any further aggression will be met with a crushing response." Iran's military adviser Mohsen Rezaei accused the U.S. of backing "proxy forces" and launching "blind strikes" on Iranian soil, according to KDH News.
The Islamabad Memorandum has three main sticking points: who controls the Strait of Hormuz, how Iran can spend billions in unfrozen funds, and what counts as a ceasefire violation. This is not the first breach. On June 3, Iranian drones hit Kuwait International Airport, killing one person and injuring 63 others, Voice of Alexandria reported.
Bahrain and Kuwait Caught in the Crossfire
Kuwait's Foreign Ministry called the attacks "brutal" and a "flagrant violation of international law," saying vital installations were damaged. Bahrain's air raid sirens marked the most direct threat to the kingdom since the war began in February, according to Goshen News. Both countries had tried to stay neutral during the conflict — that position is now gone.
The attacks also hit a key U.S. military nerve. The Fifth Fleet, based in Bahrain, is the main naval force keeping the Strait of Hormuz open. The U.S. has already expanded an "Oman route" for tankers to bypass Iranian-controlled waters. But as long as the IRGC still has working drones and missiles near the coast, insurance premiums for shipping will stay at "war-risk" levels, analysts warn.
What Comes Next If Diplomacy Collapses
If Iran follows through on its threat to stop talks, experts say the U.S. Fifth Fleet could begin a permanent naval blockade of Iran. Trump's language — warning the Islamic Republic could "no longer exist" — signals the White House may be ready to expand "Epic Fury" from limited strikes into a full campaign targeting Iran's command centers, KDH News reported.
The economic stakes are just as high. The Strait of Hormuz carries one-fifth of the world's energy supply. Treasury Secretary Scott Bessent had predicted falling gas prices before this weekend's flare-up. That forecast now looks far off. Every new attack on a tanker or Gulf military base makes a diplomatic off-ramp harder to find — and a wider war harder to avoid.
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