Bahrain and Kuwait directly struck Iranian targets for the first time in July 2026. This marks the first instance of either country launching an attack on Iran during the ongoing conflict.
The Wall Street Journal reported on July 24, 2026, that the strikes took place earlier that month. This development signifies a shift from the long-established approach of confrontation through allies and proxy forces to direct military engagement.
Reasons for Escalation
Previously, Iran had conducted missile and drone strikes against Bahrain and Kuwait, justifying these actions by citing the presence of American military bases in both nations. Tehran regarded these facilities as legitimate military targets. In response, Manama and Kuwait City resolved to no longer tolerate such attacks without retaliation.
The strikes by Bahrain and Kuwait occurred prior to the publication of the The Wall Street Journal article, suggesting that the governments may have sought to keep the information under wraps while evaluating Iran’s reaction and potential diplomatic repercussions. Iran had anticipated that attacks on the Persian Gulf states hosting American troops would undermine regional support for the USA. However, the response from Bahrain and Kuwait demonstrated the opposite effect, reinforcing their determination to resist.
Impact on the Oil Market
The Persian Gulf region is a crucial route for global oil exports, and the direct military confrontation between Iran and the Gulf countries has raised concerns among investors and traders. The strikes by Bahrain and Kuwait marked a significant escalation in the conflict.
The Strait of Hormuz, through which a substantial portion of the world’s oil supplies transit, remains one of the region’s most vulnerable areas. Further escalation or the threat of attacks on shipping and energy infrastructure could lead to new fluctuations in global oil prices.
Source: Crypto Briefing
