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Iran news and live updates: US embassy in Kuwait struck by suspected Iran drone attack

Live updates: The US State Department has warned people to ‘stay away’ after a missile struck their embassy in Kuwait.

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Matt Shrivell
The Nightly
The US has destroyed all of Iran's ships situated in the Gulf of Oman. Source: US Central Command.

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Matt Shrivell and Stephen Johnson are reporting live.

US soldier death toll mounting

The US Central Command (Centcom) has updated the death toll for service members to six.

A statment released on Monday says US forces discovered “two previously unaccounted for service members from a facility that was struck during Iran’s initial attacks in the region”.

“Major combat operations continue,” the update added.

Reserve Bank chief says Middle East conflict could worsen inflation

Reserve Bank Governor Michele Bullock has suggested the Middle East conflict could worsen Australia’s inflation problems.

“The past few days have seen a significant escalation in conflict and instability in the Middle East, which is deeply concerning,” she told a business summit in Sydney.

“A supply shock could, for example, add to inflation pressures. And the potential implications for inflation expectations are something we are very alert to.”

Crude oil prices soared by double-digit figures on Sunday after US and Israeli air strikes on Iran killed Ayatollah Ali Khamenei, with the West Texas Intermediate price hitting an eight-month high of $US72 a barrel on Monday.

Australian motorists were already paying $2 a litre for unleaded before the air strikes so an escalation in the conflict could push prices even higher, with economists equating every $US10 increase in crude oil to a 10-cent-a-litre price at the bowser.

Ms Bullock said a global slowdown because of a Middle East could also have the opposite effect on inflation.

“But at the same time, a prolonged impact on energy markets could have adverse effects on global economic activity and result in downward pressure on inflation,” she said. “It is not obvious how this might play out.”

‘Last best chance’: Trump says he seized moment to strike

US President Donald Trump says the US and Israel could not wait any longer before striking Iran.

“Everybody was behind us,” Mr Trump explained in the US when asked about the timing for the strikes.

Iran achieving their nuclear weapons goals has been decribed as an “intolerable threat” to the Middle East by Mr Trump.

The attack on Iran was “our last, best chance to strike” and to eliminate the “intolerable threats posed by this sick and sinister regime”, Mr Trump added.

US embassy in Kuwait hit by missile strike

US officials have confirmed their embassy in Kuwait has been hit by a missile.

The US state department said the missile was a suspected Iranian drone that had struck the embassy causing damage and a fire.

A statement published by The Washington Post says “there is a continuing threat of missile and UAV attacks over Kuwait.”

The state department messaging added there had been no casualties but warned people they should ”not come to the embassy.”

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Middle East conflict intensifies with missiles launched across 13 countries, sending fuel prices skyrocketing & shaking world markets.