# Iran Strikes US Bases in Kuwait and Bahrain as Hormuz Ceasefire Collapses; Oil Holds Near 73 Dollars

Iran's Revolutionary Guard launched missiles and drones at US military sites in two Gulf states after fresh US airstrikes, and Tehran threatened to halt talks. Crude has not yet repriced, with Brent near 73 dollars and West Texas Intermediate near 70.

- Published: 2026-06-29T10:15:25.599Z
- Canonical: https://polylog.news/2026-06-29/oil-falls-toward-72-dollars-as-us-and-iran-agree-to-halt-hor
- Publisher: Polylog (Global desk)
- Section: markets
- Sources: [The New York Times](https://www.nytimes.com/live/2026/06/28/world/us-iran-strikes-hormuz), [The Hindu](https://www.thehindu.com/news/international/west-asia-war-iran-us-conflict-israel-lebanon-strikes-ceasefire-live-updates-june-29-2026/article71159879.ece), [BFM.ru](https://www.bfm.ru/news/610753)

Iran's Islamic Revolutionary Guard Corps (IRGC) launched ballistic missiles and drones at two United States military sites in Kuwait and Bahrain on June 28, [Al Jazeera reported](https://www.aljazeera.com/news/2026/6/28/iran-attacks-kuwait-and-bahrain-in-response-to-us-strikes), reversing the two-week-old ceasefire that had appeared to be holding a day earlier. Kuwait's military said it detected and intercepted two ballistic missiles aimed at the Ali Al Salem airbase, with no casualties. Bahrain's Interior Ministry said a strike damaged a residential building near its international airport and destroyed its top floor, with [no deaths reported](https://www.pbs.org/newshour/world/iran-attacks-bahrain-and-kuwait-following-u-s-strikes-and-threatens-to-halt-talks). Both governments condemned the strikes as violations of their sovereignty.

The attacks followed US airstrikes on Iranian targets over the weekend. US Central Command said its fighter jets struck 10 Iranian military targets in and near the Strait of Hormuz in retaliation for a drone strike on the Panamanian-flagged tanker M/T Kiku, which was carrying more than two million barrels of crude through the waterway, [CNBC reported](https://www.cnbc.com/2026/06/29/oil-prices-wti-brent-crude-us-iran-strikes-strait-hormuz-talks.html). President Trump said Iran "will no longer exist" if the attacks continue and accused Tehran of breaking the ceasefire. Iran [threatened a complete halt to negotiations](https://www.cbsnews.com/live-updates/us-iran-war-israel-hezbollah-strait-of-hormuz-peace-deal-talks/), though a US official said talks would still go ahead. The United States and Iran had been [due to meet on June 30 in Doha](https://www.nytimes.com/live/2026/06/28/world/us-iran-strikes-hormuz) to discuss the future management of the strait.

The strait carries roughly a fifth of the world's traded oil. Citing Bloomberg data, [Russia's BFM reported](https://www.bfm.ru/news/610753) that vessel crossings had fallen by about 80 percent when the standoff was at its most intense, before recovering toward three-quarters of prewar volumes as the ceasefire took hold.

Markets have not yet repriced for the renewed fighting. [Brent crude traded near 73 dollars a barrel](https://tradingeconomics.com/commodity/brent-crude-oil) and West Texas Intermediate near 70, close to the levels reached on June 26, when both fell to their lowest since late February as Hormuz traffic recovered. Analysts at ING cautioned that traders appear to be focused on the recovery in oil flows rather than the weekend escalation, which leaves significant upside risk to prices if the strikes on Gulf states disrupt shipping again or if the Doha talks collapse.

## What this means

Energy is the fastest-moving input in global inflation, so a credible de-escalation at Hormuz lowers costs for every importer and gives central banks more flexibility. The same move reduces income for producers that depend on oil revenue, widening the divide between consuming and exporting economies.

## What to watch

- Whether the planned Doha talks proceed or Iran follows through on halting them. Continued negotiation would point toward another pause in the strikes, while a breakdown would remove the main check on a wider war and the supply disruption that would follow.
- Vessel traffic and war-risk insurance premiums through the Strait of Hormuz. A renewed drop in crossings, after the recovery to about three-quarters of prewar volumes, would be the clearest early signal that oil is about to reprice higher.
- How Kuwait and Bahrain respond after being struck on their own territory, including whether they restrict or expand US access to bases there. Their decisions would shape whether the conflict widens to draw in other Gulf states.
- Further US strikes and Trump's threats against Iran. An escalating exchange beyond the tit-for-tat seen so far would raise the risk to energy infrastructure and to the oil-export revenue that both Iran and other producers depend on.