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- U.S. forces defeated multiple Iranian ballistic missiles and drones and launched defensive strikes.
- Iran launched several ballistic missiles toward regional neighbors, though none hit their intended targets, the U.S. said.
- Iran’s Revolutionary Guard Corps attacked the U.S. Fifth Fleet headquarters, airbase and helicopters.
- Iran has been reviewing an agreement proposed by Washington to pause the war.
- Trump insisted that peace talks were ongoing.
A ship remains anchored on May 16, 2026 in the Strait of Hormuz near Larak Island, Iran. Negotiations between the U.S. and Iran over opening this critical waterway have largely stalled as the countries have rejected each other’s proposals to end the war that began when the U.S. and Israel attacked Iran on February 28.Majid Saeedi | Getty Images News | Getty Images
U.S. Central Command said Tuesday that it had defeated multiple Iranian ballistic missiles and drones and launched defensive strikes in response to “attempted attacks” by Iran, the latest in a cycle of attacks that has further threatened a fragile ceasefire.
Iran had launched several ballistic missiles toward regional neighbors, though none hit their intended targets, according to a statement from CENTCOM. Two Iranian missiles fired at Kuwait fell short or broke apart en route, and three missiles launched at Bahrain were immediately intercepted by U.S. and Bahrain air defense forces, it said.
The U.S. also shot down three one-way attack drones launched by Iran toward civilian mariners that were transiting regional waters, according to the statement. American forces also conducted self-defense strikes on an Iranian military ground control station on Qeshm Island.
Three months in, the regional conflict has hardened into a stalemate as the U.S. and Iran have repeatedly failed to turn a fragile ceasefire into a lasting peace deal.
Iran is reportedly reviewing an agreement proposed by the Trump administration to pause the war but has not communicated with Washington for a few days, Iranian media reported on Tuesday, while U.S. President Donald Trump said negotiations were ongoing.
Tensions on the ground have escalated in recent weeks. Iran’s Revolutionary Guard Corps has attacked the U.S. Fifth Fleet headquarters and an airbase and helicopters in the region using missiles and drones, in response to what the IRGC described as a U.S. attack on an a communications tower south of Qeshm Island, Reuters reported on Wednesday, citing Iranian media.
IRGC’s navy also targeted a vessel it identified as Panaya with missiles in response to what it said was a U.S. attack on an Iranian tanker near the Strait of Hormuz with a projectile that damaged the engine room, according to Reuters.
Governments in the Gulf region reported drone attacks on Wednesday, with Kuwait’s air defenses confronting “hostile missile and drone attacks” while the country urged citizens to adhere to the security and safety instructions in place.
Bahrain’s interior ministry also sounded warning sirens urging residents to seek shelter.
Asian markets traded higher on Wednesday, tracking gains on Wall Street with the major averages notching fresh record closes overnight. Japan’s Nikkei 225 hit a record high, signaling that investors have looked past the geopolitical uncertainty.
“It’s hard to gauge when [the conflict and negotiations] may finally come to an end,” Rick Gardner, chief investment officer at RGA Investments, said on CNBC’s Squawk Box Asia on Wednesday. He expects markets to oscillate between conflict-related negative shock and resilient corporate earnings.
“You’ve got a two-edged sword there,” Gardner said, adding that investors who step back from markets over geopolitical uncertainty risk being “on the wrong side of the trade,” pointing to strong earnings and guidance as reasons to stay in.
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