Kuwait’s status as a relatively stable energy hub has been upended over the past three days as Iran’s retaliatory missile and drone strikes following US and Israeli attacks leave the Gulf in turmoil.
All six Gulf Co-operation Council (GCC) countries have been affected and drawn into an unprecedented regional crisis. Missiles and drones launched by Iran not only attacked US military bases but also civilian and energy sites across the region. Iran’s retaliation has been swift and expansive.
Monday was dramatic for Kuwait. The official spokesman for the Kuwait National Petroleum Company, Ghanim Al Otaibi, announced that some debris fell in the Mina Al Ahmadi refinery near Kuwait City, injuring two workers. Production at the refinery, which according to the KNPC has a capacity of 346,000 barrels per day, was not affected.
Loud bangs rang out over the Gulf nation earlier in the day as air defences intercepted “hostile drones” approaching the country through “maritime routes”, state media said.
No casualties were reported after Kuwait's air defences had successfully intercepted the majority of the drones near Rumaithiya and Salwa neighbourhoods, state media reported.
In a separate incident, witnesses reported smoke rising near the US embassy in Kuwait. While the embassy did not confirm direct damage, it warned of the "continuing threat of missile and UAV attacks".
"Do not come to the embassy," it told citizens in a post on X. "Take cover in your residence ... do not go outside."
Iran's military also said it attacked the Ali Al Salem Air Base hosting US troops in Kuwait.
All of this marks the most significant escalation for the small Gulf state in decades – the first of this magnitude since the 1990 Iraqi invasion and subsequent Gulf War.
Kuwait hosts one of the largest concentrations of US military forces in the Middle East, serving as a key logistical hub for American operations across the region. The US maintains several bases there – including Camp Arifjan, Ali Al Salem Air Base and Camp Buehring – that support troop operations, airlift and combat support and prepositioned equipment.
About 13,500 US service members and support personnel are stationed in Kuwait. The large US military presence stems from the Iraqi invasion, which was repelled by a US-led coalition aiding the Kuwaiti army.
The Iranian attacks have so far killed five people in the Gulf, according to authorities, including one person in Kuwait.
At least three US service members were killed in Kuwait, with US President Donald Trump warning that there may be many more deaths of troops as he quoted Pentagon projections.
Late on Sunday, three US fighter jets went down “due to an apparent friendly fire incident”, the US military announced. Kuwaiti air defences shot down the F-15E Strike Eagle fighter jets accidentally.
“During active combat – that included attacks from Iranian aircraft, ballistic missiles, and drones – the US Air Force fighter jets were mistakenly shot down by Kuwaiti air defences,” US Central Command said in a statement.
The cause of the incident is under investigation, Centcom added. Kuwait’s Ministry of Defence said in the early hours of Monday morning that “several” US fighter jets crashed.
Blasts also rang out over the Gulf cities of Abu Dhabi, Dubai, Doha and Manama as Iran continues to attack America's Gulf allies after the killing of its supreme leader Ayatollah Ali Khamenei in US-Israeli strikes.
Impact and disruptions
Some residents in the country are worried. “We haven’t slept all night. The sounds very loud. This is unusual here,” Jessica Haddad, a school teacher, told The National. She lives in Kuwait with her husband and two-year-old daughter. "We stocked up on extra food and packed our emergency bags," she added.
Beyond civilian fears, the conflict’s wider economic and strategic impact is already being felt across the region.
Traffic through the Strait of Hormuz, a narrow waterway that bypasses Iran and Oman, has effectively stopped due to safety concerns.
Three tankers were attacked on Sunday while sailing on the Strait of Hormuz. Iran’s Islamic Revolutionary Guard Corps had earlier warned ships to steer clear of the waterway. It is the main route for shipping crude from oil-rich countries such as Saudi Arabia and Kuwait to the rest of the world.
Kuwait is one of the least-diversified Gulf states, with its economy and government revenue intrinsically linked to oil receipts. Any blockage to the Strait of Hormuz will severely restrict the country’s ability to export oil, as it lacks strong alternative pipeline and export infrastructure, unlike its peers, the UAE and Saudi Arabia.
As a founding member of Opec with a low operating cost per barrel, Kuwait produces more than three million bpd of crude, making it a key supplier to global oil markets. Hydrocarbons contribute about 90 to 95 per cent of export earnings. Kuwait also boasts significant refining capacity beyond crude exports, including the massive 615,000 bpd Al Zour refinery alongside existing centres such as Mina Al Ahmadi and Mina Abdullah.
Meanwhile, Qatar has halted production of liquefied natural gas following an Iranian strike on its main centre. The move is hugely significant given that QatarEnergy is the biggest producer of LNG in the world, accounting for 20 per cent of world supply.
Qatar had previously played a key role as a mediator between the US and Iran.
Financial markets have also reacted. Stocks in Qatar and Kuwait slumped on Monday as the war raises risk premium and dampens investment sentiment.
Jennifer Gnana contributed to this report
