Fresh Gulf tensions have erupted after the UAE and Kuwait strongly condemned an alleged Iranian drone attack on Bahrain, calling it a dangerous violation of sovereignty. Abu Dhabi expressed full solidarity with Bahrain and backed measures to protect its security, while Kuwait warned that such actions threaten regional peace and stability. The latest diplomatic fallout comes amid renewed friction between Washington and Tehran, raising fears that the fragile security situation in the Gulf could deteriorate further.

Gulf state says attack threatens regional stability and blames Tehran for escalation

The Gulf Cooperation Council condemned Iranian drone attacks on Bahrain, invoking collective defense. Here's what it means for crypto and energy markets.