Iran attacks Gulf neighbours as fighting with US expands

Iran targeted four U.S. allies in the Gulf overnight following American forces striking around 100 targets within the Islamic republic. The U.S. Central Command reported that its attacks hit Revolutionary Guard air defenses, radar systems, maritime assets, mine-laying equipment, and communications sites. This escalation came after the IRGC attempted attacks on ships in the Strait of Hormuz.

U.S. drones fired missiles at two Iranian government ships under a new "tanker for tanker" policy, according to Axios. Iran claimed U.S. strikes resulted in civilian deaths, with the Red Crescent reporting five fatalities and 50 wounds, including a four-year-old child, in a wedding near Sirik, a coastal town close to the Strait.

The U.S. denied targeting civilians. Seven people were killed in American strikes on three sites in Khuzestan province, including four IRGC members and three Basij militia members. Iran vowed retaliation, with the IRGC threatening "severe punishment" for the aggressors and warning countries supporting the U.S. campaign would face "heavier, more widespread, and devastating responses."

In response, Bahrain intercepted and destroyed Iranian drones, Jordan reported 13 ballistic missiles entering its airspace, with 10 intercepted and three falling in remote areas, and Kuwait confronted Iranian drones, bringing under control a residential complex blaze. Northern Iraq saw IRGC missile and drone strikes on U.S. bases near Erbil, killing American personnel, though U.S. and Iraqi authorities did not confirm.

Iran also claimed to have attacked Jordan, although initial assessments showed no American casualties. The intensity of the fighting between Washington and Tehran is the most significant since months, sending oil prices to a five-week high, surging the U.S. 10-year Treasury yield to its highest in almost three years, and causing a global bond-market sell-off.

The U.S. President Donald Trump had previously vowed to attack Iran if necessary, stating there was potential for negotiations. The crisis has been fueled by Iran's economic troubles, with the government struggling to pay wages and provide sufficient fuel amid U.S. sanctions and a naval blockade. In January, anti-government protests erupted over collapsing rial, high prices, and the cost of living, resulting in deadly demonstrations.