• Iranian retaliatory attacks target Saudi Arabia's Ras Tanura refinery and US embassy in Kuwait, causing operational shutdowns and infrastructure damage.
  • Markets react with stocks falling, oil prices and the US dollar rising amid concerns over regional stability and energy supply disruptions.
  • Air travel remains heavily disrupted across the region, with military losses including a US Air Force F-15E Fighter Eagle crash in Kuwait.

Iran has launched widespread missile and drone attacks across the Middle East, significantly impacting energy infrastructure and military operations. These strikes, which entered their third day on Monday, follow Israeli and US actions over the weekend that killed Iranian leadership, including Ayatollah Ali Khamenei. The escalation has forced key facilities offline and rattled global markets, with analysts closely monitoring the potential for further retaliation.

Saudi Arabia's Ras Tanura refinery, one of the world's largest with capacity exceeding 500,000 barrels per day, came under attack from Iranian drones on Monday morning. While incoming drones were intercepted by Saudi military forces, debris from successful interceptions sparked fires at the complex. As a precautionary measure, some operational units were shut down, though officials stated this had no immediate impact on petroleum product supplies to local markets. According to people familiar with the matter, the shutdown was temporary but could affect export flows if prolonged.

In Kuwait, the US embassy faced attack, with fire and smoke rising from inside the compound after Iranian drone strikes. Embassy personnel sheltered in place, and Kuwait's interior ministry intercepted an unspecified number of drones targeting the country. Military losses included a US Air Force F-15E Fighter Eagle that crashed in northwest Kuwait on Monday morning, with unconfirmed reports suggesting a friendly-fire incident. Kuwait's defence ministry confirmed that several US warplanes crashed, with all crew members surviving and in stable condition after medical evaluation.

Qatar's Foreign Ministry responded forcefully, stating that "Iran has to pay a price for this blatant attack" and that "an attack like this cannot be left without retaliation." Efforts to reach Iranian officials for comment were unsuccessful. The US State Department characterized the strikes as "unjustified" and noted they targeted sovereign territory, endangered civilian populations, and damaged civilian infrastructure.

Market reactions have been swift, with stocks falling, oil prices and the US dollar rising as investors weigh the risks to regional stability and energy supplies. Air travel remains heavily disrupted across the Middle East, compounding logistical challenges. Explosions were also reported in Dubai and Bahrain, while Iran struck UAE targets, including a French military base in Abu Dhabi that sustained limited material damage with no reported injuries. Without a de-escalation, analysts warn that broader economic fallout could intensify, particularly if key shipping lanes are affected.

Correction: An earlier version of this article misstated the timing of the US embassy attack; it occurred on Monday, not Tuesday.