International News 09 July 2026
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Iran Launches Missile and Drone Attacks on U.S. Bases in Bahrain and Kuwait
Middle East tensions escalated sharply after Iran launched missile and drone strikes against several U.S. military facilities in Bahrain and Kuwait, describing the operation as retaliation for recent American airstrikes on Iranian territory. In a statement released on Wednesday, the Islamic Revolutionary Guard Corps (IRGC) said it had targeted multiple U.S. installations, including Bandar Salman in Bahrain, home to the U.S. Navy’s Fifth Fleet, and Ali Al Salem Air Base. The IRGC also claimed it had shot down a U.S. General Atomics MQ-9 Reaper surveillance drone that it alleged was attempting to interfere with the operation. The attacks triggered air raid sirens across Bahrain and Kuwait, while the Kuwaiti military said its air defense systems were responding to what it described as an "enemy" missile and drone assault. The latest exchange underscores the growing risk of a broader regional conflict as hostilities between Iran and the United States continue to intensify.
Trump Declares Iran Ceasefire Deal Over After New Attacks on U.S. Bases
U.S. President Donald Trump declared on Wednesday that the temporary agreement aimed at ending the conflict with Iran had effectively come to an end following Tehran’s latest attacks on U.S. military bases in the Gulf. The announcement came after Iran launched strikes against American facilities in Bahrain and Kuwait, saying the operation was carried out in retaliation for U.S. attacks on Iranian targets following assaults on tankers transiting the Strait of Hormuz. The renewed hostilities pushed oil prices to their highest levels in two weeks and further undermined efforts to transform last month's temporary ceasefire into a lasting peace agreement. The conflict, which began with joint U.S. and Israeli airstrikes on Iran on February 28, has continued to escalate despite diplomatic attempts to end the fighting, raising concerns over regional stability and the security of global energy supplies.
U.S. Trade Deficit Widens Sharply in May as Record Capital Goods Imports Boost Demand
The United States recorded a sharp increase in its trade deficit in May 2026 as imports of capital goods surged to a record high, signaling that trade is likely to remain a drag on second-quarter economic growth despite resilient domestic investment and consumer spending. According to the United States Department of Commerce, the trade deficit widened 42.2% to US$77.6 billion, the highest level since March 2025. The increase was driven by a 3.3% rise in imports to US$395.3 billion, the strongest level in 14 months, while exports fell 3.2% to US$317.7 billion as a stronger U.S. dollar reduced the competitiveness of American goods overseas. The jump in imports reflected not only robust domestic demand but also businesses accelerating purchases to guard against potential supply disruptions and higher costs stemming from tensions in the Middle East and the possibility of new U.S. tariffs. Meanwhile, the conflict involving the United States, Israel, and Iran contributed to record exports of crude oil and refined petroleum products. The hostilities also temporarily disrupted shipping through the Strait of Hormuz, a key route for roughly 20% of global oil trade, adding to geopolitical risks in international energy markets.