Iran-Israel Conflict Escalates: Attacks on Kuwait and Renewed Strikes in Tehran

The conflict between Iran and Israel intensified on March 20, 2026, with Iran launching attacks on Kuwait’s oil infrastructure and Israel responding with strikes in Tehran. The escalating tensions are occurring as the region observes Eid al-Fitr and Nowruz, the Persian Modern Year, and are raising concerns about a wider regional conflict and disruptions to global energy supplies.

Iranian Attacks on Kuwait

Kuwait’s Mina al-Ahmadi refinery, which processes approximately 730,000 barrels of oil per day, was struck by Iranian drone attacks, causing fires across multiple units Al Jazeera. Several units were shut down as a precaution, though no casualties were reported. Kuwait’s military reported intercepting incoming missile and drone threats Al Jazeera. This marks the second day of attacks on the refinery.

Retaliation and Regional Impact

These attacks are part of a broader Iranian campaign targeting Gulf Arab states, in retaliation for an Israeli strike earlier in the week on Iran’s South Pars gasfield, which supplies approximately 80 percent of Iran’s domestic natural gas needs Al Jazeera. Iran’s Islamic Revolutionary Guard Corps (IRGC) also claimed to have struck U.S. Forces at the UAE’s al-Dhafra airbase and sites within Israel Al Jazeera. The UAE reported incoming missile and drone threats, whereas Bahrain reported a warehouse fire caused by “Iranian aggression” Al Jazeera. Saudi Arabia intercepted and destroyed over a dozen drones within two hours Al Jazeera.

Israeli Response and Market Concerns

Israel responded with attacks on government facilities in Tehran Yahoo News. Iranian state TV reported the death of Ali Mohammad Naini, deputy head of public relations for the Islamic Revolutionary Guard Corps, in an Israeli attack Yahoo News. Air raid sirens sounded in Tel Aviv and Jerusalem as interceptors engaged incoming missiles, some reportedly carrying cluster bombs Yahoo News.

The escalating conflict has led to concerns about global energy supplies. The benchmark price of Brent crude oil eased slightly to US$108 after surging the previous day Yahoo News. Flows of crude and petroleum have dropped by approximately 12 million barrels a day, representing roughly 12 percent of global demand Yahoo News. Restoring oil and gas flows could take up to six months Yahoo News.

International Response

European leaders have called for an end to targeting Gulf energy infrastructure France 24. However, there is no widespread willingness to intervene militarily. France’s President Emmanuel Macron stated that defending international law and promoting de-escalation are the priorities, but noted no expressed willingness to enter the conflict France 24. The US has called on allies to facilitate secure shipping lanes through the Strait of Hormuz, with several nations pledging to join “appropriate efforts” France 24.

Looking Ahead

The conflict shows no immediate signs of abating, with both Israel and Iran demonstrating continued capabilities, and resolve. Prospects for a truce are hampered by differing objectives, with Israel focused on disabling Iranian leadership and the US aiming to destroy Iran’s ballistic missile capabilities Yahoo News. The situation remains highly volatile and poses significant risks to regional stability and the global economy.