Despite a sharp escalation in military exchanges across the Gulf, US and Iranian officials say diplomatic negotiations remain on track, underscoring the unusual reality of a conflict in which both sides are trading attacks while keeping channels for a broader peace agreement open.

The latest crisis erupted after Iran launched drones and missiles toward US military facilities in Bahrain and Kuwait following American retaliatory strikes on Iranian military sites.

US officials said none of the Iranian drones or missiles successfully struck their intended targets. Most were intercepted by US and allied air defenses, while others failed before reaching their destinations. American officials also reported no US casualties.

Despite the exchange of fire, negotiators are still expected to meet in Qatar this week to continue technical discussions aimed at preserving the fragile ceasefire framework and advancing a broader agreement covering Iran's nuclear programme, sanctions relief and security in the Strait of Hormuz.

Mediators from Qatar and Pakistan continue to push both sides to keep diplomacy alive even as military pressure intensifies.

The latest flare-up has also widened the regional conflict. Iran warned it could suspend negotiations if further US strikes continue, while Israel has stepped up operations against Hezbollah in Lebanon, prompting a parallel race by Israel's military and technology sector to strengthen defences against increasingly sophisticated drones, precision missiles and electronic warfare threats posed by the Iran-backed militant group.

The Gulf states have increasingly found themselves on the front lines of the confrontation. Bahrain and Kuwait, both hosts to major US military facilities, became direct targets of Iranian retaliation, highlighting how America's regional partners remain vulnerable even when attacks are intercepted.

The renewed exchanges have also reignited concerns over commercial shipping through the Strait of Hormuz, a vital artery for global oil exports, although negotiators insist efforts to stabilize maritime security remain part of the ongoing talks.