Iran Strikes Kuwait and UAE as Oil Market Holds Steady
Latin America · ENERGY
Key Facts
- —What happened Iran launched missile and drone strikes on a US-linked air base in Kuwait and one in the UAE.
- —How big Iran called the strikes the 31st wave of a military campaign it has run since February.
- —What it means The strikes are part of a Gulf war that has disrupted global oil supply since February 2026.
- —The catch Thursday’s flat oil price hides months of gains that already reshaped Latin America’s oil economies.
- —Who it affects Higher Gulf-driven oil prices are reshaping economics in Venezuela, Ecuador and Argentina’s Vaca Muerta fields.
- —What happens next Kuwait says it may respond as Chevron presses ahead with a $7 billion Venezuela expansion.
Iran’s Gulf strikes left oil prices nearly flat this time — Latin America is still feeling months of shock from the war.
Iran launched fresh missile and drone strikes at bases in Kuwait and the United Arab Emirates on Thursday. Kuwait’s military said its air defenses intercepted the weapons.
Iran’s army called the attack the 31st wave of a campaign it calls Operation Saeqeh, or Lightning. No casualties were reported from Thursday’s strikes, unlike earlier rounds of the six-month war.
What Iran Says It Hit
Iran’s military named two targets: Ahmad al-Jaber Air Base in Kuwait and Al Minhad Air Base in the UAE. It said it hit satellite communications gear, radar systems and jet hangars.
Kuwait called the strikes a violation of its sovereignty. It said it reserves the right to respond.
The UAE did not confirm damage at Al Minhad. Iran said the attack avenged US bombing that has killed at least 18 people in Iran since August 30.
The wider war began in February when US and Israeli strikes killed Iran’s supreme leader during nuclear talks. A ceasefire signed in June collapsed in July after Iran attacked shipping in the strait.
Oil Barely Moves
US benchmark crude West Texas Intermediate settled near $91 a barrel Thursday. That was up just 0.3% from Wednesday.
World benchmark Brent crude closed near $95 a barrel. It slipped about 0.1% on the day.
Analysts said traders had already priced in the risk. Saudi Arabia kept its official crude pricing unchanged, a sign supply was not as tight as feared.
A TD Securities analyst told CNBC that US-Iran fighting keeps exposing how fragile any short-term truce really is.
A separate strike hit a Saudi oil tanker this week, killing two Filipino crew members. US crude inventories fell 4.5 million barrels to 424.5 million, tightening the physical market even as prices held steady.
Estimates of Gulf shipping traffic varied widely. President Trump said 18 million barrels a day were still moving through the Strait of Hormuz.
Independent tanker trackers put the real figure closer to 6 million to 8 million barrels a day.
Venezuela’s Oil Bet Grows
The timing matters for Venezuela. Washington and Caracas struck a new oil deal this week, just before Thursday’s strikes.
Chevron will invest more than $7 billion over five years in Venezuela’s Orinoco Belt. It aims to roughly double output there to about 600,000 barrels a day.
The deal covers 17 oil fields once estimated to hold 65 billion barrels. It follows Maduro’s capture by US forces in January.
Delcy Rodríguez now serves as Venezuela‘s interim president. Analysts estimate fully rebuilding the country’s oil industry could take a decade and cost $183 billion.
Elevated Gulf-driven prices make that bet more attractive to Washington. More Venezuelan barrels could reduce US dependence on Middle East oil supply.
Chevron is already Venezuela’s largest foreign oil operator. Years of sanctions and underinvestment have left much of the country’s oil infrastructure in poor condition.
Ecuador’s Fragile Windfall
Ecuador is already cashing in on higher oil prices tied to the war. The government collected $791 million in oil revenue between January and April, up 153% from a year earlier.
Ecuador budgeted this year’s crude at $53.50 a barrel. Prices ran far higher, near $85 in March and near $93 by May.
Production tells a different story. Output averaged 463,000 barrels a day in early 2026, down 2% from a year before.
A fire damaged the Esmeraldas refinery in March, cutting it to about 40% capacity. Ecuador now leans more on costly fuel imports despite higher export revenue.
Ecuador’s government projects $3.027 billion in oil revenue for all of 2026. It had already banked 26% of that target by April.
Argentina’s Vaca Muerta Payoff
Argentina benefits too, through its Vaca Muerta shale fields in Patagonia. Every $10 rise in oil prices adds roughly $1.7 billion to Argentina’s economy, economists estimate.
Vaca Muerta output jumped 15.8% in February from a year earlier, reaching 874,000 barrels a day. Argentina’s energy trade surplus is projected to top $14 billion in 2026.
Shares in state energy company YPF rose 2.76% Thursday to $53.91. Investors are betting elevated prices keep boosting Vaca Muerta’s economics.
Higher oil prices carry a cost at home, too. Gasoline and diesel prices have climbed 6% to 9% since March, complicating President Javier Milei‘s fight against inflation.
Brazil’s Petrobras also gained on Thursday, with its US shares up 2.61% to $20.86. Deep-water oil fields there grow more valuable as global crude prices stay elevated.
More: Venezuela news in English, every day from The Rio Times.
Frequently Asked Questions
What did Iran strike on September 3, 2026?
Iran struck Ahmad al-Jaber Air Base in Kuwait and Al Minhad Air Base in the UAE. It called the attack the 31st wave of its Operation Saeqeh campaign.
Did anyone respond to the strikes?
Kuwait said its air defenses intercepted the weapons. It called the attack a violation of its sovereignty and said it may respond.
Why didn’t oil prices react more to the strikes?
US crude closed near $91 a barrel Thursday and Brent near $95, both little changed. Analysts said the market had already priced in the risk.
How does this affect Venezuela’s oil deal with the US?
Higher Gulf-driven oil prices make Venezuela’s opening more valuable to Washington. Chevron plans to invest more than $7 billion there to roughly double output to about 600,000 barrels a day.
Are Ecuador and Argentina affected too?
Ecuador’s oil revenue is running 153% above last year. Argentina gains roughly $1.7 billion for every $10 rise in oil prices.
Sources: Rigzone, CNBC, SouthFront, The National Pulse, NPR, Buenos Aires Times, The Cuenca Dispatch, The Rio Times Online.
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