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Iran war live updates: U.S. embassy in Riyadh hit by drones, Trump promises response 'soon'

Follow the latest news after the U.S. and Israel launched a massive attack on Iran that killed Iran's Supreme Leader Ayatollah Ali Khamenei.

BusinessBy Catherine ChenMarch 3, 20265 min read

Last updated: March 29, 2026, 5:39 PM

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Iran war live updates: U.S. embassy in Riyadh hit by drones, Trump promises response 'soon'
  • U.S. embassy in Saudi Arabia's capital Riyadh hit by drones.
  • U.S. military leaders said more forces are headed to the region as they declined to say how long the war with Iran could last.
  • Trump, in remarks at the White House, said the military campaign against Iran "was our last, best chance to strike," and outlined objectives for the operation.
  • Six U.S. service members are confirmed killed in action as military operations in the Middle East enter their third day.
  • Three U.S. F-15 jets crashed over Kuwait in an apparent friendly fire incident, no casualties.
  • U.S. State Department urged Americans in 14 countries to 'depart now.'.
  • Thousands of flights have been canceled since the conflict began.
  • Congress aims to vote on Iran war powers resolution this week.

The U.S.–Iran war is escalating rapidly, entering its fourth day, with the American Embassy in Riyadh coming under attack Tuesday and President Donald Trump warning that the conflict could stretch well beyond the four weeks he had estimated earlier.

Risk-off mood has taken hold of markets with gold, considered a safe-haven during times of uncertainty, surging while global equities continue to remain under pressure — U.S. futures and Asian markets fell on Tuesday.

Prospects of an energy supply shock have risen, with Iran reportedly closing the Strait of Hormuz, and warning that it will target vessels that attempt to transit via the critical waterway, sending oil prices higher.

The conflict has also compromised tech infrastructure based in the Middle East, with Amazon Web Services reporting multiple data centers were knocked offline by drone attacks.

  • Follow CNBC's live coverage of the U.S. strikes in Iran
  • Next phase of Iran war 'will be even more punishing,' Sec. Rubio says
  • Amazon says drone strikes damaged 3 facilities in UAE and Bahrain
  • Iran war prediction bets draw heat: ‘Insane this is legal’
  • How high can oil and gas prices go due to Iran war? Here are scenarios
  • First flights take off from Dubai after Iran strikes, but service is 'limited'
  • Khamenei's death raises questions about Trump's China trip
  • Defense stocks jump as U.S., Iran exchange attacks
  • How Iran chooses its supreme leader, and who could be next?

The Strait of Hormuz is facing a blockade. These countries will be most impacted

The closure of the Strait of Hormuz by Iran is sending shockwaves across global energy markets, with Asia expected to face the maximum pain.

A prolonged closure of the Strait would likely lead to a further surge in oil prices, with some analysts seeing oil crossing $100 per barrel. Global benchmark Brent was last up 2.6% at around $80 per barrel —almost 10% higher since the conflict broke out.

About 20% of global liquefied natural gas exports that come from the Gulf are also at risk.

"In Asia, Thailand, India, Korea and the Philippines are the most vulnerable to higher oil prices, due to their high import dependence, while Malaysia would be a relative beneficiary since it is an energy exporter," Nomura wrote in a note on Monday.

Trump touts ‘virtually unlimited’ U.S. munitions; UAE, Qatar deny weapons' shortage

President Donald Trump said Tuesday that the U.S. has a "virtually unlimited supply" of munitions as the war with Iran escalates.

He added that the stockpiles "at the medium and upper medium grade" have never been higher or better. It was not immediately clear what weapon grades Trump was referring to.

'Wars can be fought "forever," and very successfully, using just these supplies (which are better than other countries finest arms!)," Trump said in a post on Truth Social.

He added that "Much additional high grade weaponry is stored for us in outlying countries."

Earlier, the United Arab Emirates and Qatar denied reports that their inventories of Patriot interceptor missiles were running low.

The two countries had requested assistance to counter aerial threats such as missiles and drones, Bloomberg reported, citing people familiar with the matter.

"These assertions are unfounded and misrepresent the UAE's high level of preparedness, technological sophistication, and operational readiness," the UAE Ministry of Foreign Affairs said in a statement.

Qatar's International Media Office also said it is "well-stocked" with Patriot interceptor missiles.

Amazon says drone strikes damaged three data centers in UAE and Bahrain

People walk past the logo of Amazon Web Services (AWS) at its exhibitor stall at the India Mobile Congress 2025 at Yashobhoomi, a convention and expo center in New Delhi, India, October 8, 2025.

Amazon's cloud computing unit confirmed three of its data centers in the Middle East were damaged by drone strikes, taking the facilities offline.

The company posted in an update to its Amazon Web Services health dashboard that two facilities in the United Arab Emirates were "directly struck" by drones on Sunday, causing extensive damage. A site in Bahrain was damaged due to a drone strike that occurred nearby.

"These strikes have caused structural damage, disrupted power delivery to our infrastructure, and in some cases required fire suppression activities that resulted in additional water damage," the company wrote.

AWS encouraged customers to consider migrating workloads to other regions as the situation in the region remains "unpredictable." It also said expected a prolonged recovery "given the nature of the physical damage involved."

Trump says U.S. response to attack on its embassy will be revealed 'soon'

U.S. President Donald Trump told NewsNation that details of Washington's response to the attack on the U.S. Embassy in Riyadh, and for the deaths of American military personnel in the Iran conflict, would be revealed "soon," according to a reporter from the outlet who shared excerpts of the interview on X on Monday.

Trump also said that boots on the ground won't be necessary, according to the reporter's post.

Saudi Arabia's defense ministry said earlier that the U.S. embassy had been hit by drones, causing a small fire and minor material damage.

U.S. embassy in Riyadh hit by drones, causing 'limited fire,' no injuries reported

The U.S. embassy in Saudi Arabia's capital city Riyadh was hit by two drones on Tuesday morning, according to the Middle Eastern country's defense ministry.

The drone attack resulted in a "limited fire and minor material damage" to the building, according to the defense authority.

The U.S. Embassy to Saudi Arabia has issued a warning for people in Jeddah, Riyadh and Dhahran to hide in the shelter and limited non-essential travel to any military installations in the region.

"We recommend American citizens in the Kingdom to shelter in place immediately," the embassy said in a post on X.

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Catherine Chen

Financial Correspondent

Catherine Chen covers finance, Wall Street, and the global economy with a focus on business strategy. A former financial analyst turned journalist, she translates complex economic data into clear, actionable reporting. Her coverage spans Federal Reserve policy, cryptocurrency markets, and international trade.

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