The United States and Iran are exchanging military strikes for the second consecutive day, with Iran launching drone and missile attacks Sunday targeting Bahrain and Kuwait in response to US airstrikes that hit the Islamic Republic Saturday.

Iran’s state media said the attacks were retaliation for what it called US aggression, and Tehran threatened a “complete halt” to any ongoing peace negotiations if Washington continues its military operations.

How It Escalated

The US struck targets inside Iran on Saturday at the direction of President Trump, citing “continued Iranian aggression against commercial shipping” in the region. The White House said the strikes were a direct response to months of interference with international maritime traffic in and around the Strait of Hormuz.

Iran’s response came within hours. By Sunday, Iranian drones and missiles were targeting Bahrain and Kuwait — two US partner states with American military installations — in what Tehran framed as a proportional counter-strike.

Threat to Negotiations

The escalation is significant not just militarily but diplomatically. Iran had been participating in indirect talks with the US through intermediaries over recent months, focused on the country’s nuclear programme and sanctions relief. Tehran’s threat to walk away from those talks entirely adds a new dimension to what was already a volatile standoff.

Whether the strikes on Bahrain and Kuwait caused casualties or significant damage to US facilities was not confirmed in initial reports. Both countries are home to major US military installations — Bahrain hosts the US Navy’s Fifth Fleet.

Regional Implications

The strikes extend a pattern of Iranian proxy and direct action across the region that has been building since late 2025. The direct targeting of Gulf states raises the stakes beyond a bilateral US-Iran confrontation and brings Saudi Arabia and other regional powers into the equation.

Oil prices and global shipping insurance rates moved sharply on Sunday as markets responded to the news from the Gulf.

The situation remains active. Both Washington and Tehran have issued statements but neither has confirmed whether further military action is planned or whether diplomatic channels remain open.