Iran Strikes Kuwait as Middle East Conflict Spirals Out of Control

A sweeping escalation across the Middle East has rattled global markets and raised serious doubts about prospects for peace, after Iran launched missiles at Kuwait late Wednesday night in what the United States military condemned as an "egregious ceasefire violation."

According to AP, Kuwait confirmed that its forces intercepted the incoming missiles, though officials did not immediately disclose the intended targets or whether the attack resulted in any casualties.

The US had previously acknowledged carrying out strikes against Iranian missile launch sites, minelaying boats and attack drones that it said were threatening the Strait of Hormuz, which remains largely blockaded.

The spiralling confrontation between Washington and Tehran has now pulled one of America's closest Gulf allies directly into the line of fire.

Pakistan's Foreign Minister Ishaq Dar is set to travel to Washington on Friday for a meeting with US Secretary of State Marco Rubio. Pakistan's foreign ministry said the two officials would "review bilateral relations and exchange views on regional and global developments of mutual interest."

On the financial front, stocks retreated from record highs as investor confidence in a negotiated settlement took a hit.

Oil climbed as much as four percent, while bond prices fell sharply. Brent crude was last trading up 2.7 percent at $96.8 a barrel.

Though prices have come down from four-year highs above $126 recorded in late April, they remain 33 percent above pre-war levels and 50 percent higher than a year ago, with traffic through the Strait of Hormuz still moving at a trickle.

Can Lebanon Survive as Israeli Strikes Kill Civilians Near Army Barracks in Tyre?

The violence has not been confined to the Gulf. In Lebanon, an Israeli strike on a motorcycle in the southern city of Tyre killed two Syrian nationals, one of them a child, according to Lebanon's National News Agency, citing the country's Health Ministry. The attack took place near a Lebanese army barracks in the city.

A few days ago, Israeli Prime Minister Benjamin Netanyahu had announced that ground operations would be expanded beyond what the army has designated the Yellow Line, a boundary drawn across southern Lebanon marking a no-go zone for residents, as per an Al-Jazeera report.

Israel has been demolishing villages south of that line, yet Hezbollah's armed drone campaign against Israeli troops in southern Lebanon and northern Israel has persisted. The Israeli army announced the death of another of its soldiers on Thursday morning.