Qatar warns regional turmoil could force the Gulf to halt oil and LNG exports within days, as risks to shipping and storage mount. Iraq and Kuwait have cut output. Prices have jumped to a two‑year high, stoking worries over supply security, trade flows and inflation.

Washington, working with Gulf partners, plans to buy mass‑produced, low‑cost drone interceptors from a European ally to counter one‑way drones used by a regional adversary, as pricey missile stocks dwindle. Talks involve the UAE and Qatar, with rapid scaling to strengthen Western and Gulf air defences.

US forces sank an Iranian frigate near Sri Lanka, the first torpedoing of an enemy ship since the second world war. Washington says the move deters further regional attacks, while shipping in the Indian Ocean and Gulf faces higher risk, prompting insurers and energy markets to brace for disruption.

Escalating tensions in the Middle East triggered an energy supply shock that hammered global markets. Equities fell and sovereign bonds swung as oil surged on risks to output and key routes. The upheaval raised inflation concerns and complicated central bank plans.