Iran’s military has announced strikes on American strategic assets and military bases in Kuwait and Bahrain. This action comes shortly after Egypt reported a drone attack on its Mediterranean port of Damietta, which damaged two vessels and caused a fire.

This marks the first attack on Egyptian soil since the outbreak of the US-Iran war in late February. On July 21, 2026, in Tehran, Iran, a passerby walked past a mural. Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed through the official Islamic Republic News Agency (IRNA) that it had struck US military targets, including air defense systems, in Bahrain and Kuwait on the same day.

Why did Iran strike Kuwait and Bahrain?

Iran’s military announced on Friday that it had launched strikes on US strategic facilities and military bases in Kuwait and Bahrain as a direct response to a recent round of US airstrikes on Iranian territory. Iranian state media reported that drones were used to attack Kuwait’s Ahmed al-Jaber Air Base, targeting aircraft hangars, satellite communication systems, and equipment storage warehouses used by US forces. The Iranian military also stated on Thursday that it had hit US facilities at the Sheikh Isa Air Base in Bahrain, striking targets including power generators, navigation systems, and logistics support buildings.

These attacks follow a major US airstrike operation on Wednesday that targeted dozens of IRGC sites across Iran. This cycle of mutual strikes marks an escalation in the US-Iran conflict, with a sharp increase in the frequency of drone attacks on energy infrastructure across the Middle East.

What is the significance of the attack on Egypt?

Egypt reported on Thursday that a drone struck the Mediterranean port of Damietta, hitting two ships and sparking a fire. No group has claimed responsibility for the attack. This is the first time Egypt has been attacked on its own soil since the start of the US-Iran war in late February. Hamish Kinnear, a Middle East and North Africa analyst at the risk consultancy Verisk Maplecroft, interprets the drone attack as evidence that Egypt’s security is under pressure from the escalating conflict. He noted that the Suez Canal, a vital shipping artery, has also become a potential target.

In a research note on Thursday, Kinnear wrote: “The geographic range of drone and missile attacks on shipping has expanded this year, covering the Caspian, Black, Mediterranean, Red, and Persian Gulf seas, as well as the Indian Ocean, ushering in a new high-risk phase for global maritime trade.” He added: “Attack techniques and concepts honed in the Russia-Ukraine war and the Middle East conflict are now spreading, and maritime risks have long since moved beyond traditional conflict zones.”

How are markets reacting?

International oil prices continued to decline in early trading on Friday, as shipping through the Strait of Hormuz resumed smoothly, easing concerns about a disruption to crude supply. The international benchmark Brent crude oil futures for September fell nearly 2% to $87.30 per barrel, while US WTI crude oil futures for September dropped 2.3% to $81.71 per barrel.

US President Donald Trump stated at the White House on Wednesday that he hoped Congress would include tariffs on Iranian imports in a bipartisan bill that also sanctions Russia and Iran. The practical impact of such tariffs would be limited, as bilateral trade between the US and Iran is very low. However, the addition of tariff clauses could slow down the passage of the entire bill into law.