Kuwait Pounded By Iranian Barrage As Oil And Desalination Plants Come Under Attack

Kuwait was bombarded overnight in one of the fiercest Iranian retaliatory strikes since the US-Iran conflict erupted in late February, with missiles and one-way drones targeting power infrastructure and other critical energy assets.

Local outlet Kuwait News Agency reports an unspecified site of the Kuwait Petroleum Corporation suffered "significant material losses" as the week-long flare-up in Gulf tensions has derailed any near-term normalization of tanker flows through the Strait of Hormuz.

There was a report that the Al-Subiya power station was struck. This marks the second attack on Kuwaiti power infrastructure in just days, after a transformer at the Zour South electricity and desalination complex was hit on Friday.

Authorities disconnected several power-generating units as a precaution and urged residents to conserve electricity. A Kuwaiti army base was also struck during the latest escalation, injuring several personnel.

Second Iranian strike in two days hit a Kuwaiti power/desalination plant, sparking a fire.

A similar plant was hit yesterday.

Strikes are part of Iran's ongoing campaign against US military sites in Kuwait (Ali Al Salem base and others).

Kuwait relies on desalination for ~90%… pic.twitter.com/EyTPOwTIsM

— Clash Report (@clashreport) July 18, 2026

On March 2, we warned: 

• Airports, Data Centers, Skyscrapers, & Power Plants: Are Desalination Plants Next Targets In U.S.-Iran War

Bahrain and Jordan intercepted Iranian missiles and drones. The overnight barrage followed a seventh consecutive night of US strikes targeting Iranian surveillance sites, weapons storage, logistics infrastructure and maritime offensive capabilities as the Department of War seeks to erode Tehran's leverage on the Hormuz waterway.

As of late Friday, the previous US-Iran wrap stated:

• Surge in more large US refueling planes headed to Mideast, signaling likely expansion of strikes on Iran.
• US attacks hit Iranian energy and transport infrastructure.
• Iran threatens stronger retaliation and claims strike on US base in Qatar - and deepens attacks to include US outposts in Jordan, Syria.
• Iran urges power conservation; Hormuz shipping traffic declines further.
• Oil prices rise to session highs on fears of broader regional conflict.

Brent chart

The latest Hormuz tanker transit data via Bloomberg shows that activity at the maritime chokepoint has all but ceased. This data is based on ships activating their transponders and doesn't account for ships that 'go dark'...

Latest overnight headlines (courtesy of Bloomberg):

US-Iran Escalation

• The US launched its seventh consecutive night of strikes against Iran on Friday at 3 p.m. ET, aimed at degrading Iran's military capabilities, including hitting bridges, energy infrastructure, and a port facility in southern Iran, according to Iranian state media.
• The conflict has intensified beyond military targets, with the US striking six road bridges and reports of attacks near Bushehr's nuclear power plant and the province of Lorestan, raising fears of a return to full-scale war.
• The hostilities were triggered by an Iranian drone strike on a cargo ship in the Strait of Hormuz on June 25, just days after the US and Iran signed a preliminary ceasefire deal, setting off a chain of escalating attacks.
• Iran has threatened a "full-scale offensive" in response to US strikes, with the Strait of Hormuz remaining virtually closed as of Saturday.

Iran Attacks Kuwait

• Iran launched a heavy barrage on Kuwait on Saturday morning, striking a vital oil facility and causing significant material losses and injuries, according to Kuwait Petroleum Corporation via state news agency KUNA.
• Kuwait airport suspended flights following the Saturday attacks, which triggered multiple rounds of sirens from around dawn.
• Iran also struck a power and desalination plant and a transformer at the Zour South facility, causing a fire and marking Tehran's first targeting of power infrastructure during the current escalation.
• Kuwait's foreign ministry accused Iran of systematically targeting civilian sites and vital infrastructure, saying it "endangers the lives and safety of civilians."

Iran's Counterstrikes

• Iran has been targeting US bases in Kuwait, Jordan, and Bahrain in retaliation for US strikes. The IRGC claimed its 20th wave of "Nasr 2" operations destroyed several American aircraft at a US airbase in Jordan.
• US-sanctioned Iranian tankers are U-turning and zig-zagging in the Gulf of Oman as the US enforces an aggressive blockade of Iranian shipping, having redirected three merchant ships, boarded one vessel, and disabled a non-compliant tanker.

Energy Market Impact

• Crude oil prices surged sharply, posting their biggest rise since April, as fears of renewed escalation grew and shipping traffic through the Strait of Hormuz slumped significantly.
• The Strait of Hormuz shutdown is expected to spark massive investments aimed at permanently reducing reliance on the chokepoint, restructuring global energy infrastructure and trade flows, according to Bloomberg Intelligence.