US strikes Iranian radar sites; IRGC raids Kuwait and Bahrain

The United States conducted airstrikes on Iranian radar sites in Goruk and Oeshm, targeting military infrastructure. In response, Iran's Islamic Revolutionary Guard Corps (IRGC) launched raids against what it described as 'enemy bases' in Kuwait and Bahrain. The strikes mark a significant escalation in the ongoing Middle East conflict, with the US aiming to degrade Iranian air defense capabilities while Iran retaliates by striking US-aligned Gulf states. The attacks occurred amid heightened tensions following previous exchanges between Israel and Iran-backed groups. Kuwait and Bahrain, considered the weakest links in the pro-US coalition, now face direct military action. Regional analysts warn of a broader war, with Lebanon also cited as a potential flashpoint. Pope Francis expressed concern over the conflict's impact on Lebanon, calling for restraint.

Global Impact

This is a major geopolitical escalation with immediate economic and security consequences. Economically, oil prices will spike on supply risk from the Strait of Hormuz, impacting global inflation and central bank rate paths.