The Pentagon is exploring Ukrainian-made interceptor drones to counter Iranian drone attacks, according to industry sources in Kyiv. Defence officials from Washington and at least one Gulf state are in talks to acquire these cheaper alternatives to expensive Patriot missiles, which Gulf states have been using to defend against waves of Iranian Shahed drones.

Ukraine has developed mass-produced interceptor drones costing just a few thousand dollars each to destroy Russian versions of the Shahed. This experience has caught the attention of Gulf states whose Patriot missile stockpiles are declining. The move comes as tensions escalate in the Middle East, with Iran launching more missiles toward Israel and Saudi Arabia intercepting cruise missiles near its air bases.

Oil prices surged 2.5 per cent to $83.51 a barrel in Asian trading as US and Israeli officials indicated the conflict with Iran would continue. The market reaction underscores the economic stakes as defence technology shifts toward cheaper, mass-produced solutions for countering drone threats.