Regional escalation: Iran-linked missile and drone attacks reported

Updated: 7:02 PM PKT — June 3, 2026

Major Gulf stock markets fell on Wednesday as stalled peace talks between the United States and Iran led to renewed hostilities and heightened investor caution. The downturn was widespread, with Saudi Arabia’s benchmark index falling 0.1%, Dubai’s main index dropping 0.8%, and Abu Dhabi’s index down 0.4%.

The market slide came as Iran’s Revolutionary Guards claimed to have targeted the US Fifth Fleet headquarters in Bahrain, and the US military reported intercepting other Iranian missile attacks in the region. Analysts suggest that while solid domestic economic conditions may offer some support, hopes for a diplomatic breakthrough are needed to limit further losses.

Updated: 5:59 PM PKT — June 3, 2026

The escalating military conflict between the United States and Iran is now impacting global metals markets, causing copper prices to retreat. On Wednesday, benchmark three-month copper on the London Metal Exchange fell by 0.9% to $13,914 a metric ton as fresh hostilities curbed risk appetite among investors.

The conflict has also strengthened the US dollar, making commodities priced in the currency more expensive for international buyers. Analysts warn that a prolonged conflict could further dampen demand for metals by fueling inflation and slowing economic growth. Other industrial metals, including aluminium, lead, nickel, and tin, also experienced price drops.

Updated: 3:26 PM PKT — June 3, 2026

Global crude oil prices surged by over 1% in early trading Wednesday amid escalating military tensions between the United States and Iran. The price hike follows a US strike on Iran’s Qeshm Island and subsequent Iranian missile attacks towards Kuwait and Bahrain, coupled with a lack of progress in diplomatic negotiations.

Brent crude futures increased by $1.05, or 1.09%, to settle at $97.05 per barrel. Similarly, US West Texas Intermediate (WTI) crude rose by $1.01, or 1.08%, to $95 per barrel, while Emirati Murban oil was trading at $96 per barrel.

Updated: 2:25 PM PKT — June 3, 2026

Following its recent missile and drone attacks in the Gulf, Iran has initiated a series of high-level diplomatic contacts to discuss the regional security situation. Iranian Foreign Minister Abbas Araghchi held telephone conversations with his counterparts in Pakistan, France, Turkey, Qatar, Egypt, and Saudi Arabia.

According to Iran’s Foreign Ministry, Pakistan’s Field Marshal Asim Munir also participated in the discussion with Araghchi, which focused on recent developments. The diplomatic outreach comes after Tehran claimed responsibility for strikes on US targets in Kuwait and Bahrain, which it described as a response to American aggression.

Updated: 10:50 AM PKT — June 3, 2026

The US Central Command (CENTCOM) has confirmed that Iran launched multiple missile attacks, firing two towards Kuwait and three towards Bahrain, all of which were intercepted or fragmented. The attacks prompted air defense alerts in Kuwait and danger sirens in Bahrain early Wednesday morning.

In response, the US military conducted strikes on Iran’s Qeshm Island in the Strait of Hormuz, describing the action as “self-defense” against ballistic missiles and drones. CENTCOM explicitly refuted claims by Iran’s Revolutionary Guard Corps of a successful strike on a US base in Bahrain, stating that “all of Iran’s attacks on US forces failed.”