Bahrain activated its missile alert system for a second time on Monday, urging residents to seek shelter as tensions in the Gulf region intensified.
The warning came as Iran continued a retaliatory campaign targeting US military assets in response to recent airstrikes.
This marks a significant escalation in the ongoing conflict, following an earlier incident earlier in the week where sirens sounded across the kingdom and eyewitnesses reported missile interceptions in the skies above Bahrain.
The recurrence of direct threats to Gulf infrastructure keeps a heavy risk premium on regional energy and shipping assets.
Markets remain on edge as the conflict broadens beyond direct military targets to encompass civilian alert systems in key transit hubs.
The prospect of further escalation continues to weigh on sentiment, with traders monitoring for any disruption to critical shipping lanes or energy facilities in the Persian Gulf.