US-Iran war escalates as Tehran vows 'eye for an eye', Kuwait intercepts drones and Houthis hit Saudi tankers

Tech firms enjoyed a much-needed bounce on Thursday, helping most Asian stock markets higher amid renewed hopes for the AI boom.

Oil prices climbed, however, after the United States and Iran ratcheted up Middle East tensions.

Investors' appetite for all things artificial intelligence has been tested in recent months on concern about elevated valuations and as they question when the trillions pumped into the sector will see returns.

That has hammered a number of previously high-flying companies that have hit multiple records this year, particularly those in South Korea and Japan.

The US House of Representatives narrowly passed an annual defence policy bill on Wednesday that would authorise a record $1.15 trillion in funding for the Pentagon, as the divisive Iran war drags on. Though it traditionally sees significant bipartisan support, the 2027 National Defence Authorization Act (NDAA) passed the lower chamber in a 216-212 vote, a sign of the growing polarization under President Donald Trump.

Oil ​prices rose for a fifth day on Thursday. Brent crude futures rose $2.42, or 2.6 percent, to $96.49 by 0640 GMT, the highest since 8th June, having settled up more than $3 at $94.07 in the previous session, just shy ​of a six-week high. US West Texas Intermediate crude climbed $1.59, or 1.8 percent, to $88.42, after Wednesday's rise of 3 percent.

French oil and gas giant TotalEnergies said Thursday net profit doubled in the second quarter, on the back of high hydrocarbon prices resulting from the conflict in the Middle East.

TotalEnergies said in a statement that net profit amounted to $5.4 billion in the period from April to June, up from $2.7 billion in the same period a year earlier.

Foreign ministers from fuel-stressed Southeast Asia will call for freedom of navigation in international straits when they wrap a week of meetings largely overshadowed by the US-Iran war, according to a draft communique seen by AFP.

The draft statement expected to emerge from the Association of Southeast Asian Nations (ASEAN) gathering in Manila will also repeat calls for self-restraint in a Middle East conflict that has carried economic ripple effects throughout the region.

Visiting US Secretary of State Marco Rubio this week warned ASEAN envoys that Iranian control of the Strait of Hormuz would set a "dangerous precedent".

"There is a fundamental principle about freedom of navigation that is threatened," he said.

The draft communique inserts previously unused language targeting "freedom of navigation in and overflight above straits" while separately calling for "unimpeded" passage through the Strait of Hormuz.

British no-frills airline EasyJet said Thursday that its profit tumbled in the third quarter as the Middle East war sent jet fuel prices surging.

Profit before tax fell 70 percent to GBP85 million ($114 million) in the three months to the end of June, compared to one year earlier, EasyJet said in a statement.

President Donald Trump has honoured four US service members killed in the Middle East, with the White House saying their "service, courage, and sacrifice will never be forgotten." The fallen were named as 1st Lt. Tyler Feehan, Sgt. Michael Swinton, Sgt. Angel Rampersad and Pvt. Isabella Gonzales. The tribute comes as more than 50,000 US troops operate across the region amid the escalating conflict with Iran.

Iran's army and its Revolutionary Guards on Thursday said they attacked several US bases in Kuwait following attacks by American forces on Iran.

The Guards claimed attacks on Ali Al Salem base, Camp Udairi and a telecommunications tower, while the army said it targeted Camp Doha, Ali Al Salem base and Camp Arifjan, according to separate statements by the forces carried by state TV.

Iran's Revolutionary Guards, the ideological arm of the country's military, said on Thursday that they had attacked and destroyed several American military assets in Jordan.

The targets included a radar for the US THAAD missile defence system, a Patriot system, a C-RAM radar and a helicopter hangar, according to a statement from the Guards aired by state TV.

The FBI's Cyber Division has warned that Iran-affiliated hackers continue to target operational technology devices across US critical infrastructure, including programmable logic controllers (PLCs), causing operational disruption and financial losses in several sectors. The bureau said the attacks involved malicious project file interactions and manipulation of HMI and SCADA data. Updated guidance issued Thursday, expanding on an April advisory, details new methods for detecting malicious changes in Rockwell Automation PLC programs and widens the scope to cover targeting of Schneider Electric, Siemens and other branded controllers. The FBI urged operators to restrict direct internet access to these systems.

Travellers flying from the UAE on Thursday should expect some disruption as airlines continue to adjust operations amid the escalating conflict in the Gulf.

While UAE airports remain operational and the majority of flights are operating as scheduled, some services to Bahrain and Kuwait have been cancelled, while several other departures and arrivals are facing delays.

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The US State Department has issued a worldwide caution alert, warning Americans of a complex security environment and the potential for unforeseen escalation amid heightened tensions in the Middle East. The advisory urged Americans in the region to be prepared for flight cancellations, airspace closures and travel disruptions, noting that some airlines have postponed resuming schedules or cancelled routes. It warned that US diplomatic facilities, including outside the Middle East, have been targeted, and that Iran and groups supportive of Iran may attack US interests, businesses and institutions worldwide. Americans outside the region were advised to reconsider travel to and through the Middle East and to check with airlines before flying.

Iran's Revolutionary Guards said Thursday they stopped three oil tankers from passing through the Strait of Hormuz, as the United States and Iran vie for control over the vital waterway.

In recent weeks, Iran has hit tankers using a route hugging the Omani coast to traverse the strait, in a bid to strongarm vessels into using its own waters and pay for safe passage.

"Three oil tankers, provoked and tempted by the child-killing American army, were trying to pass through the mine-laid route south of the Strait of Hormuz, but after one of them exploded and caught fire, the other two quickly turned around and turned back," the Guards said in a statement quoted by Iranian state media.

The statement did not say when the incident happened.

"The powerful IRGC Navy emphasizes that the Strait of Hormuz is under our control... and any ship that is deceived by the US and intends to pass without coordination with the Islamic Republic of Iran will suffer the same fate," the Guards added.

A vessel belonging to a Saudi company was hit while transiting the Red Sea, Saudi state media reported Thursday citing an official source, after Yemen's Houthi rebels claimed it struck tankers in the waterway.

The source, quoted by state-run Saudi Press Agency, said "the vessel ENCELIA, belonging to a Saudi company, was targeted while sailing in the Red Sea, resulting in a fire at the bow of the ship" but that all crew members were safe.

US Central Command said its forces completed another round of strikes against Iran at 10:30pm ET on July 22 (6:30am Gulf time on July 23), marking the 12th consecutive night of operations. American forces hit Iranian military targets including maritime capabilities, missile and drone storage facilities, coastal surveillance sites and air defence assets, in what CENTCOM said would further degrade Iran's ability to attack civilian mariners and commercial vessels.

The command said US forces have struck dozens of Iranian military sites on land this month while enforcing a naval blockade, redirecting nine commercial vessels and disabling one to prevent ships from entering or leaving Iranian ports. More than 50,000 US service members are operating across the Middle East, CENTCOM added.

A US Air Force E-3B Sentry airborne warning and control aircraft declared a general in-flight emergency Thursday while operating over Saudi Arabia, according to flight tracking data. The aircraft began squawking the international emergency transponder code 7700 shortly before 1:30 a.m. UTC (5:30 AM in Gulf Standard Time (GST) on Thursday (July 23, 2026), Flightradar24 reported. The plane had been active for hours in the region near the Arabian Gulf. No immediate details were available on the nature of the emergency, and US military officials have not publicly commented.  The E-3B, a militarised Boeing 707 variant equipped with a distinctive rotating radar dome, provides critical command, control and surveillance capabilities. It is frequently deployed in high-tempo operations in the Middle East.

Iranian Foreign Minister Abbas Araghchi said Iran would respond in kind to any attack on its infrastructure, after Washington threatened to bomb a bridge or power plant for every ship targeted in the Strait of Hormuz.

"Our defence doctrine is clear: eye for an eye. Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response," Araghchi stated on X.

Kuwait's military said its air defence systems intercepted hostile drones on Thursday following what it described as an Iranian attack, urging residents to remain calm and follow official safety instructions.

In a statement, the General Staff of the Kuwaiti Army said air defences were "confronting attacks by hostile drones" and noted that any explosions heard by the public were the result of interception operations.

The military called on residents to adhere to security and safety directives issued by the country's competent authorities.

The statement came amid heightened tensions in the Gulf as the conflict involving Iran continues to escalate. Kuwaiti authorities did not immediately provide details on the number of drones intercepted, whether any damage had been reported, or if there were casualties. Iran has not immediately commented on the allegation.

Yemen's Houthi rebels said they carried out missile and drone strikes Wednesday on two Saudi oil tankers in the Red Sea after declaring a maritime embargo on the kingdom amid the US war with Iran, AFP reported.

The Houthis said in a statement posted on Telegram that they "carried out a qualitative military operation targeting two Saudi oil tankers that violated the blockade", naming the vessels as the Encelia and the Layla.

US Central Command forces began a new round of strikes against Iranian military targets overnight on Thursday (July 23), the military said, as part of an ongoing campaign to degrade Iran’s ability to threaten commercial shipping in regional waters.

Iran state media reported early Thursday (Tehran time) that the cities of Ramshir and Ahvaz, in the country's southwest, were under "missile attack by the US terrorist enemy," while authorities in Bushehr province, along Iran's Gulf coast, reported an attack there by a US missile.

In a post on X, CentCom stated that strikes commenced at 5:30 pm ET on Wednesday July 22 (1.30am Gulf Standard Time on July 23, 2026) , and “will continue to further degrade Iran’s ability to threaten civilian mariners and commercial vessels transiting regional waters.”

The announcement comes amid escalating tensions between the US and Iran, with repeated American strikes, now on its 12th consecutive days/nights since fighting resumed.

CentCom has conducted multiple rounds of operations targeting Iranian command centres, air defenses, missile and drone sites, coastal facilities and communications networks.

President Donald Trump has approved a landmark civilian nuclear cooperation agreement with Saudi Arabia, clearing the way for US companies to help develop the kingdom's civilian nuclear energy program in a move that is expected to trigger debate over nuclear proliferation and security in the Middle East. The US Department of Energy announced Wednesday that the two countries had signed a so-called "123 Agreement," a legal framework required under the U.S. Atomic Energy Act for civilian nuclear cooperation. The accord now heads to Congress for a mandatory review before it can take effect.

According to US officials familiar with the agreement, the 30-year deal would allow American companies to supply nuclear technology, equipment and expertise for Saudi Arabia's planned civilian reactor program.

The US military has dismissed Iran's claim that its Islamic Revolutionary Guard Corps (IRGC) controls access to the Strait of Hormuz, calling the assertion "false."

In a statement posted on X, CENTCOM said Iran does not control the strategic waterway and that commercial vessels continue to transit the strait despite what it described as IRGC threats and attacks.

"The international waterway remains open for transit," CENTCOM said, adding that US forces have assisted more than 900 commercial ships through the Strait of Hormuz since early May.

The statement comes after the IRGC Navy claimed it controlled entry to and exit from the vital shipping lane, through which about one-fifth of the world's seaborne oil passes.

US President Donald Trump delivered a speech at a high school in Georgia and addressed the escalation in the confrontation with Iran. "We don't need the Strait of Hormuz," he claimed, "but we're doing this because we have to, because we cannot allow Iran to have nuclear weapons."

According to him, "That's how we're also winning in the Islamic Republic of Iran, and ensuring that never, but never, will they have the power to do to us what they did to so many. They killed more than 52,000 protesters."

Iran’s Foreign Minister Seyed Abbas Araghchi warned that any attack on Iran, including strikes against its infrastructure, would trigger a “powerful and decisive” response.

In a post on X, Araghchi said: “ Our defense doctrine is clear: eye for an eye. Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response.”

Araghchi also warned that “those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets.”

Day 143: US tightens Iran blockade, redirects 9 commercial ships

Day 142: Air defences roar over Tehran on 11th night of strikes

Day 141: Iran president says country in 'full-scale war' with US

Day 140: US strikes Iran, Gulf states face missile threats as war risks spread

Day 139: Two US troops killed, one missing in Jordan

Day 138: Gulf faces fresh attacks as Trump signals diplomacy

Day 137: Dubai rebuts false explosion reports

Day 137: Iran says it is no longer bound by parts of US ceasefire deal

Day 136: 2 UAE tankers hit, US to resume Iran blockade

Day 135: US military launches another round of Iran strikes