Tehran: Iranian state television reported on Wednesday that an oil refinery on Lavan Island was targeted in a "cowardly attack" just hours after a fragile ceasefire was established, prompting Tehran to launch retaliatory strikes against Kuwait and the United Arab Emirates.

The National Iranian Oil Refining and Distribution Company stated that the Lavan Oil Refinery, situated in the Persian Gulf, was struck at approximately 10 a.m. (0630 GMT). While the assault ignited a significant blaze, emergency responders successfully contained the fire, and officials confirmed that no casualties were reported.

Escalation Following the Truce

The incident has severely tested the two-week, "double-sided" ceasefire brokered by U.S. President Donald Trump and accepted by Iran earlier Wednesday. In response to the strike on its energy infrastructure, Iran launched a wave of missiles and drones toward neighbouring Gulf states.

"Missile and drone attacks on the Emirates and Kuwait have taken place a few hours after the targeting of Lavan island oil facilities in Iran," the state-run broadcaster IRIB reported.

The Iranian military characterised the morning assault on Lavan Island as the catalyst for its renewed operations. Kuwaiti defence officials reported that their air defence systems have been engaging an "intense wave" of approximately 28 drones since 8 a.m. local time, which have caused "significant material damage" to oil facilities, power stations, and desalination plants.

Regional Defences Activated

Simultaneously, the Ministry of Defence of the United Arab Emirates confirmed that its own air defence systems were "actively engaging" incoming ballistic and cruise missiles, as well as unmanned aerial vehicles originating from Iran. Explosions were reported across major Emirati urban centres, including Abu Dhabi and Dubai, as interceptors neutralised the threats.

The swift return to hostilities occurred less than 24 hours after President Trump suspended a major U.S. bombing campaign, citing a "workable" 10-point proposal from Tehran. Iranian Foreign Minister Seyed Abbas Araghchi had previously stated that Iran's "Powerful Armed Forces" would only cease defensive operations if attacks against the country were halted.

As of Wednesday afternoon, the identity of the party that initiated the strike on Lavan Island remains unconfirmed, though the subsequent regional escalation has cast doubt on the high-level peace negotiations scheduled for Friday in Islamabad.