The military confrontation between the US and Iran has shown fresh signs of intensification.

According to CCTV, Iran's Islamic Revolutionary Guard Corps (IRGC) issued a statement on the 2nd of the month, saying that in retaliation for previous US attacks, the Corps launched a combined missile and drone strike early that morning on the US Ali Al Salem Air Base in Kuwait. The targets included US command quarters and accommodation areas, drone hangars, and tarmacs.

The statement claimed the attack resulted in the deaths of multiple US personnel, the destruction of several drones that had participated in strikes against Iran, and fires in the associated hangars and on the tarmacs. The IRGC noted that this operation was conducted in parallel with attacks on US bases in Jordan, Bahrain, and Erbil, Iraq.

In a separate statement on the same day, US Central Command confirmed that US forces had completed a new round of strikes against Iranian military targets. This latest wave included the IRGC's air defense positions, radar systems, maritime assets and facilities, as well as its mine-laying capabilities and communication sites.

The sustained escalation in US-Iran military conflict could lead to a further rise in geopolitical risk premiums in the Middle East. Particularly, if the conflict expands from targeting military assets to energy infrastructure and shipping lanes, concerns over crude supply risks and inflation expectations may once again become a focal point for the markets.

Iran Conducts Multi-Front Attacks on US Bases

According to CCTV News, on the same day, the secretary of Iran's Parliamentary National Security and Foreign Policy Commission, Saeedi, stated that during the retaliatory operation, Iranian armed forces used ballistic missiles to strike a US Marine Corps base in Jordan, hitting hangars housing RQ-4 and MQ-9 drones. Simultaneously, Iran launched a combined missile and drone attack on US facilities in Erbil, Iraq, which destroyed US radar and intelligence surveillance systems.

Saeedi also claimed that Iranian forces had shot down 50 US MQ-9 drones. He warned that if the other side takes new actions, Iran will deliver a "strong response."

Meanwhile, Tehran continued its strong condemnation of US military operations.

According to CCTV News, Iran's Foreign Ministry spokesman, Baghaei, labeled the US strike on a wedding ceremony in Sirik County, Hormozgan Province, as a "war crime." In a social media post, Baghaei wrote that the bombing of a wedding in Sirik was part of America's "death throes to cover its defeat." He added that the truth about this illegitimate war and war crimes lies in Sirik, not in the AI-generated videos depicting US officials as triumphant heroes.

Additionally, Xinhua reported that the secretary of Iran's Supreme National Security Council, Mohsen Rezaei, stated that Iran has formulated new strategies in the military, diplomatic, and economic blockade response areas to "destroy the enemy's foundations." In a social media post, Rezaei argued that the enemy cannot escape its current predicament no matter how much it "struggles in its death throes," and that it will soon see Iran's new strategies in these three domains.

US Expands Strike Scope With New Targets

US Central Command's statement confirmed the completion of a new round of strikes against Iranian military targets.

The US statement detailed that this round of action targeted the IRGC's air defense positions, radar systems, maritime assets and facilities, as well as its mine-laying capabilities and communication sites.

Compared to earlier operations that focused on air defense positions and radar, this strike extends to Iran's mine-laying and communication infrastructure, indicating a broadening of the US attack scope. The focus appears to be shifting from degrading air defense systems to limiting Iran's maritime operations and communication capabilities.

With both sides announcing attacks and counterattacks, the conflict continues its cycle of strike, retaliation, and re-strike. Should both parties continue to expand their target lists, there is a growing risk of the conflict spilling over to more countries and regions, which would further increase uncertainty for energy prices, shipping, and the global inflation outlook.