Iran escalates tensions.
Iran attacks Bahrain and Kuwait after US strikes, threatens to halt regional talks.
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Iran launched drone and missile strikes against Bahrain and Kuwait in the early hours of June 28, 2026, targeting U.S. military facilities in both Gulf nations. The attacks came in direct response to new U.S. airstrikes on Iranian missile sites the day before, AP News reported. Iran's Revolutionary Guard claimed responsibility and called the strikes a "decisive response" to American aggression.
Iran also threatened to completely halt all peace negotiations if U.S. strikes continue. The warning puts the fragile Islamabad Memorandum of Understanding — a 14-point ceasefire deal signed just 11 days ago — on the verge of collapse, according to AP News.
IRGC Hits Gulf Bases in Overnight Barrage
Between 2:00 and 4:00 AM local time, Iran's Revolutionary Guard fired ballistic missiles and attack drones at eight military sites in Kuwait and Bahrain. Targets included Ali al-Salem Air Base in Kuwait and the U.S. Navy's Fifth Fleet headquarters at Port Salman in Bahrain, according to Al Arabiya. Kuwaiti forces intercepted two ballistic missiles. No deaths were reported in either country.
Bahrain's Interior Ministry confirmed a residential building in Muharraq Governorate was damaged. Bahrain called the strikes a "systematic pattern of deliberate aggression" against its sovereignty. Kuwait and Bahrain both issued formal condemnations by morning, per Al Arabiya.
A Ceasefire Deal Now Hanging by a Thread
The Islamabad Memorandum was signed on June 17 by President Donald Trump and Iranian President Masoud Pezeshkian. It opened a 60-day window for peace talks and called for an immediate halt to all military operations, according to CBS News. Key terms included reopening the Strait of Hormuz toll-free and a $300 billion fund to rebuild Iran.
The deal began to unravel on June 25 when Iran struck the Singapore-flagged cargo ship M/V Ever Lovely in the Strait of Hormuz. The U.S. hit back with airstrikes on Iranian missile storage and radar sites on June 26. Iranian Foreign Minister Abbas Araghchi, speaking from Iraq, warned that U.S. moves to expand shipping routes near Oman would only "increase the level of tension," per AP News.
Trump Warns Iran of Total Destruction If War Resumes
President Trump posted on Truth Social that if Iran keeps violating the ceasefire, the U.S. will "militarily complete the job." He went further, warning that "the Islamic Republic of Iran will no longer exist" if escalation continues, according to The Washington Post. Secretary of State Marco Rubio flew to Bahrain to meet King Hamad bin Isa Al Khalifa and coordinate a joint Gulf response.
The Institute for the Study of War assessed that Iran is using force to pressure Gulf states into accepting Iranian control of the Strait of Hormuz. Chatham House called the MOU "fragile at best," noting it lacks the binding power of a formal treaty and relies entirely on good faith from two sides currently trading missile strikes.
Oil Spikes Again as War Costs Mount for Americans
Oil markets reacted fast. After spiking to $120 per barrel when Iran closed the Strait of Hormuz in March, Brent Crude had fallen to $83 per barrel after the June 17 signing. The new strikes have pushed prices back toward $100 per barrel, according to the Energy Institute. The Global Peace Index estimates a full return to war would cost the world economy $2.2 trillion.
The average American household has already absorbed between $775 and $1,300 in higher fuel and tax costs since the conflict began in February. The U.S. military is spending an estimated $314.8 million per day to maintain operations. Only 23% of Americans now say the war was worth the cost, per a Reuters and Ipsos poll — a major political risk heading into November midterm elections.
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