US strikes Iran after oil licence revoked, Tehran hits Bahrain and Kuwait

The United States struck Iranian targets after revoking an oil licence, and Iran answered with attacks on Bahrain and Kuwait. The escalation has rattled Gulf security, endangered Hormuz shipping and pushed oil prices higher.

In Short

• Washington revoked the oil licence hours before launching Wednesday's military action
• Missile alerts sounded in Bahrain and Kuwait after Iran targeted US bases
• Commercial shipping disruptions off Oman reignited fears over global energy security

The United States launched strikes on Iran early Wednesday, hours after revoking a licence that had allowed the sale of Iranian oil under an interim agreement. Iran responded with strikes on Bahrain and Kuwait, raising fresh concerns over a wider conflict in the Middle East and sending oil prices higher.

US President Donald Trump later said the interim agreement with Iran was effectively finished, though he said talks could go on. "For me, I think it's over," Trump said when asked about the status of the ceasefire. He added that US representatives could continue negotiations, but cast doubt on the outcome, saying, "They can talk, but I think they're wasting their time."

The exchange came as efforts were under way to restore fuel shipments through the Strait of Hormuz, a route vital to the global economy. Negotiations on a final deal were due to begin after the burial of Iran's Supreme Leader Ayatollah Ali Khamenei and were expected to focus on fully reopening the strait and rolling back Tehran's disputed nuclear programme. The latest attacks have now put those plans in doubt, though neither side immediately indicated it would leave the talks.

The US military's Central Command said American forces carried out the strikes "to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway". It said the strikes hit Iranian targets including air defence systems, radars and more than 60 small boats used by Iran's paramilitary Revolutionary Guard. The military added that it remains "prepared to hold Iran accountable when the agreement is not adhered to or obeyed", and said this round of attacks had ended.

Iranian state media reported explosions in several places, including Bandar Mahshahr, where a Guard member was killed. It also reported attacks on Bushehr, home to Iran's nuclear power plant complex. On Wednesday morning, Bahrain, which hosts the US Navy's 5th Fleet, and Kuwait, where US Army forces are based, sounded missile alerts. The Guard later said it had targeted US military installations in both countries. A similar round of Iranian attacks on shipping and US retaliatory strikes took place late last month, before Iran also struck Bahrain and Kuwait.

The latest escalation followed US action to revoke the licence that had authorised the sale of Iranian oil as part of the interim deal. The move came after new strikes on shipping in the Strait of Hormuz. The United Kingdom Maritime Trade Operations centre said one tanker off the coast of Oman was hit and caught fire. Iranian state television said the tanker was attacked after ignoring warnings, but did not directly claim responsibility. Majed al-Ansari, spokesperson for Qatar's Foreign Ministry, said the vessel was carrying Qatari natural gas and called the strike an "unacceptable attack" on international navigation and global energy security. He said Qatar holds Iran "fully legally responsible". Two other ships suffered some damage, but no one was injured and both continued their journeys, the UK agency said.

Under the interim deal, Iran and the US had agreed to allow ships to pass through the strait without charges for 60 days. But Tehran has insisted it must control the routes taken by vessels and has said it would later impose passage fees, a move opposed by the US and many Gulf Arab states. The ships attacked on Tuesday appeared to be using a route near Oman's coast rather than one ordered by Tehran. Before the war, about a fifth of the world's traded oil and natural gas moved through the strait. Brent crude, the international benchmark, rose more than 5 per cent on Wednesday after Trump's remarks.

The fighting also came during the days-long funeral for Khamenei, who was killed on February 28 in the opening moments of the war. Ceremonies were held on Wednesday in Najaf in Iraq, attended by Iranian President Masoud Pezeshkian and other Iranian and Iraqi officials, including Prime Minister Ali Falah al-Zaidi. Funeral prayers were also due later at the Imam Hussein shrine in Karbala. Khamenei's son and Iran's new Supreme Leader, Ayatollah Mojtaba Khamenei, has not yet appeared at the ceremonies, which began on Saturday in Tehran, and is believed to be in hiding after reportedly being wounded in the airstrike that killed his father. The body is to be taken back to Iran for burial on Thursday at the Imam Reza shrine in Mashhad, his birthplace.

Iranian Parliament Speaker Mohammad Bagher Qalibaf wrote on X, "The era of bullying and extortion is over. It leads nowhere. We don't fold." In the UAE, senior diplomat Anwar Gargash said Iran's attacks on Bahrain and Kuwait were "a clear indicator that Tehran remains incapable of committing to the requirements of de-escalation and turning the page on war". The latest strikes have again disrupted attempts to stabilise the region, reopen shipping through the Strait of Hormuz and keep US-Iran talks on track.

With PTI Inputs

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