Israel-Iran War Day 21: Mojtaba Khamenei strikes back, Trump eyes Kharg move; oil tops $119 as Gulf strikes intensify

As the Iran war is set to enter its third week, expectations of a slowdown in strikes on energy infrastructure were dashed after Kuwait reported overnight drone hits on its Mina Al-Ahmadi refinery, underscoring the widening footprint of the conflict.

According to Kuwaiti state media, firefighting teams responded promptly to the blaze, and certain units were shut down as a precaution. Initial estimates indicated no casualties.

Here is what we know of the day’s key developments so far:


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US weighs Kharg Island move to reopen Hormuz: Report

The administration of Donald Trump is weighing plans to occupy or blockade Kharg Island to pressure Tehran into reopening the Strait of Hormuz, Axios reported citing four sources.

The White House also signalled that the US could “take out” Kharg Island — which processes nearly 90% of Iran’s crude exports — at any time, highlighting the strategic centrality of the offshore hub located about 15 miles from Iran’s coast.

The move comes as Washington looks to break Iran’s grip over shipping through the strait, disruption of which has sent global energy prices surging.

Energy infrastructure under attack again

As the war enters its third week, hopes of easing pressure on energy assets faded after fresh drone strikes hit Kuwait’s Mina Al-Ahmadi refinery.

Fire crews contained the blaze, with units shut as a precaution and no casualties reported. The repeated targeting of Gulf energy infrastructure underscores a widening conflict footprint, with Iran stepping up strikes following attacks on its own South Pars gas field earlier this week.

The wave of attacks has also extended to Qatar’s LNG facilities and oil installations in Saudi Arabia and Kuwait, amplifying concerns over sustained supply disruptions.

Crude spikes, gold falls as markets swing

Global oil markets reacted sharply, with benchmark Brent crude briefly crossing $119 per barrel before easing, while US crude (WTI) also advanced. Regional grades such as Dubai and Oman crude saw record premiums.

The surge reflects mounting fears that sustained attacks on energy hubs and shipping routes could tighten supplies further.

In contrast, gold prices fell 1.8% after reports of additional US troop deployments to the Middle East, suggesting a shift in investor positioning amid escalating military signals.

Iran signals resilience despite leadership losses

Iran’s Revolutionary Guard spokesman Gen Ali Mohammad Naeini was killed in an airstrike, according to state media, marking another high-profile casualty in the conflict.

However, Tehran signalled defiance, insisting its missile programme remains intact and operational even under sustained attacks, indicating no immediate slowdown in its military posture.

New Supreme Leader strikes hardline tone

Iran’s Revolutionary Guard spokesman Gen Ali Mohammad Naeini was killed in an airstrike, according to state media, marking another high-profile casualty in the conflict.

However, Tehran signalled defiance, insisting its missile programme remains intact and operational, indicating no immediate slowdown in its military posture.

In a separate statement, Iran’s leadership said attacks reported against Turkey and Oman were not carried out by Iran or its allied forces, pushing back against widening regional accusations.

Gulf tensions spill over into civilian and commercial zones

The conflict’s spillover is becoming more visible across the Gulf, with Iranian-linked institutions in Dubai shutting operations and air defence systems intercepting incoming projectiles over the city.

Bahrain reported a fire caused by falling debris, while Saudi Arabia said it intercepted multiple drones targeting its oil-rich eastern region, pointing to growing regional risks.

New Supreme Leader strikes hardline tone

Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei called for adversaries’ “security” to be taken away, signalling an aggressive stance amid escalating hostilities.

His remarks come amid heightened uncertainty over leadership visibility. US President Donald Trump, meanwhile, said there were “no leaders in Iran left to talk to,” further dimming prospects for diplomatic engagement.

Gulf tensions spill into civilian and maritime zones

The conflict’s spillover is becoming more visible across the Gulf, with Iranian-linked institutions in Dubai shutting operations and air defence systems intercepting incoming projectiles over the city.

Bahrain reported a fire caused by falling debris, while Saudi Arabia said it intercepted multiple drones targeting its oil-rich eastern region.

Amid the tensions, two Indian-flagged tankers carrying liquefied petroleum gas are preparing to sail through the Strait of Hormuz in the coming days, highlighting the continued risks to commercial shipping in the region.

Shipping incidents and vessel damage have increased, prompting Gulf states to reinforce defences around critical infrastructure.

Israel opens new fronts, sharpens rhetoric

Israel Defense Forces said it carried out strikes on Syrian military infrastructure in response to attacks on the Druze population, marking an expansion of the conflict’s geographic scope.

Israeli officials also condemned what they described as Iran’s “madness” after projectiles landed near holy sites in Jerusalem, escalating tensions further.

Prime Minister Benjamin Netanyahu said Iran’s military capabilities had been significantly degraded, even as Israeli strikes continued on Tehran and other strategic locations.

US, UK deepen coordination; NATO tensions surface

The UK has approved the use of British bases by the US to strike Iranian missile sites targeting ships, signalling deeper Western military coordination.

At the same time, Trump criticised NATO allies for what he described as a lack of sufficient support in the conflict, exposing divisions within the alliance over the extent of involvement.

European powers, including the UK, France and Germany, have so far signalled reluctance to join active combat, limiting their role to support and coordination.

Also Read | As Iran-Israel-US war begins to hurt, UAE takes steps to ease the pain

Drone attack hits Kuwait’s Mina Al-Ahmadi refinery

• Kuwait Petroleum Corporation (KPC) said its Mina Al-Ahmadi refinery was struck by a drone attack overnight, triggering a fire in some units.
• Firefighting teams responded promptly, and certain units were shut down as a precaution to ensure safety.
• According to initial estimates, no casualties were reported.

Oil prices surge past $119

• Brent oil surged above $119 a barrel before settling around $113, while WTI also rose, reflecting heightened supply fears and market volatility.
• Iran’s strikes and Israel’s earlier hit on the South Pars gas field triggered a wave of attacks across the region, including damage to Qatar’s LNG facilities and Saudi and Kuwaiti energy sites.
• Dubai and Oman crude premiums hit record highs, while European gas prices climbed to multi-year peaks amid fears of prolonged disruption.
• The US signaled possible sanctions relief on Iranian oil, while discussions continue on military deployments and measures to contain rising fuel costs.

EU pushes for de-escalation

• The European Union urged a pause on strikes targeting energy and water facilities.
• Leaders called for “maximum restraint” and adherence to international law.
• Concerns over civilian safety and economic stability dominated the Brussels summit.
• The bloc is also exploring ways to stabilize energy flows and avoid a deeper crisis.

Strait of Hormuz: A strategic flashpoint

• The Strait of Hormuz remains partially disrupted, shaking global oil supplies.
• The US has pressed allies to help secure the route, but responses remain cautious.
• European and G7 nations stressed the importance of freedom of navigation.
• Planning is underway for coordinated efforts to ensure safe maritime passage.

Allies divided on military involvement

• Countries including the UK, France, and Germany signaled reluctance to join active combat.
• Limited military coordination is underway, including planning support roles.
• Leaders stressed intervention would depend on de-escalation and legal mandates.
• Several nations ruled out direct participation in ongoing hostilities.

Iran continues regional offensive

• Tehran sustained missile and drone attacks across Israel and Gulf states.
• Strikes have targeted oil, gas, and maritime infrastructure.
• Iran warned regional countries against aiding US military operations.
• The conflict has expanded to include proxy actors and allied groups.

Israel intensifies strikes, signals confidence

• Benjamin Netanyahu said Iran’s military capabilities have been significantly degraded.
• Israeli strikes hit Tehran and key infrastructure despite earlier restraint pledges.
• Leadership divisions within Iran are reportedly widening.
• Israel maintains operations will continue until strategic goals are met.

Energy markets and global economy under pressure

• Oil prices have surged sharply amid supply fears.
• Gas infrastructure damage has disrupted exports from key producers.
• Europe fears prolonged inflation and economic instability.
• Alternative supply routes are under strain due to continued attacks.

Security concerns rise across the Gulf

• The United Arab Emirates reported intercepting attacks and dismantling a militant network.
• Shipping incidents and vessel damage have increased in regional waters.
• Gulf states are reinforcing defenses around critical infrastructure.
• Civilian and commercial risks continue to escalate across the region

IEA suggests demand-side measures to ease oil price pressures

• The International Energy Agency (IEA) has issued a report outlining measures to help ease rising oil price pressures on consumers.
• The report recommends practical steps to reduce fuel demand, including working from home where possible, encouraging the use of public transport, and avoiding air travel when alternatives are available.
• It also suggests reducing highway speed limits by at least 10 km/h as part of broader efforts to conserve energy and manage market strain.