Iran launched missile and drone attacks on American military installations in the Gulf on Wednesday after the United States carried out strikes on multiple Iranian targets and reinstated sanctions on Tehran's oil exports, sharply escalating tensions and casting doubt on the future of the fragile ceasefire between the two countries.
The U.S. said its overnight strikes were a response to Iranian attacks on commercial vessels in the Strait of Hormuz, one of the world's most strategically important energy corridors.
The exchange of attacks has heightened fears that the conflict could reignite after a temporary pause in fighting. Those concerns deepened when U.S. President Donald Trump declared that the interim ceasefire agreement was effectively finished, while saying diplomatic talks could still continue.
"For me, I think it's over," Trump told reporters. "They can talk, but I think they're wasting their time."
His remarks sent oil prices sharply higher, with Brent crude rising more than 6% amid renewed concerns over energy supplies from the Gulf.
Negotiations aimed at securing a broader agreement had been expected to begin after the conclusion of funeral ceremonies for Iran's late Supreme Leader, Ayatollah Ali Khamenei, who was killed during the opening phase of the war. The talks were expected to focus on reopening the Strait of Hormuz fully and addressing Iran's disputed nuclear programme.
Iranian Parliament Speaker Mohammad Bagher Qalibaf rejected U.S. pressure, writing on X that "the era of bullying and extortion is over," adding that Iran would not yield.
U.S. strikes Iranian military targets
The U.S. Central Command (CENTCOM) said American forces struck Iranian air defence systems, radar installations and more than 60 fast attack boats operated by Iran's Islamic Revolutionary Guard Corps.
According to the U.S. military, the operation was intended to impose "heavy costs" on Iran for targeting commercial shipping and civilian crews in international waters.
Those Revolutionary Guard boats have long been central to Iran's strategy in the Strait of Hormuz, through which roughly one-fifth of the world's traded oil and natural gas passed before the conflict disrupted maritime traffic.
Iranian state media reported explosions in several locations, including Bandar Mahshahr, where a Revolutionary Guard member was reportedly killed, as well as in Bushehr, home to Iran's only nuclear power plant.
Iran targets U.S. bases in Bahrain and Kuwait
Following the American strikes, Iran launched attacks on U.S. military facilities in Bahrain and Kuwait.
Authorities in both Gulf states activated missile alerts, while Iran's Revolutionary Guard confirmed it had targeted American military installations in the two countries.
Kuwait said its air defences intercepted two ballistic missiles and 13 drones fired by Iran. Officials also reported temporary disruptions to parts of the country's electricity network after debris from intercepted missiles damaged power lines.
The latest exchange mirrors a similar escalation that occurred late last month, when Iranian attacks on shipping prompted U.S. retaliation and subsequent Iranian strikes against Bahrain and Kuwait.
Washington tightens pressure on Iranian oil exports
Before launching the military operation, Washington revoked a licence that had temporarily allowed Iran to sell crude oil under an interim agreement reached during the ceasefire.
The licence had suspended some U.S. sanctions and enabled Tehran to sell oil openly in U.S. dollars for the first time in years. Iran has long been accused of exporting sanctioned crude, particularly to China, through alternative channels.
The move followed attacks on three commercial vessels in the Strait of Hormuz.
One tanker carrying Qatari natural gas caught fire after being struck off the coast of Oman, according to the United Kingdom Maritime Trade Operations (UKMTO). Iranian state television acknowledged the incident but stopped short of claiming responsibility.
Qatar condemned the attack, with Foreign Ministry spokesperson Majed al-Ansari describing it as an "unacceptable attack" on international navigation and global energy security. He said Doha holds Iran "fully legally responsible."
The two other ships sustained limited damage and continued their voyages without injuries, UKMTO said.
Funeral ceremonies continue for Khamenei
Meanwhile, funeral ceremonies for Ayatollah Ali Khamenei continued Wednesday in the Iraqi holy city of Najaf, attended by Iranian President Masoud Pezeshkian and senior Iraqi officials.
Khamenei's son and successor, Supreme Leader Ayatollah Mojtaba Khamenei, has not appeared publicly since the ceremonies began and is believed to be in hiding after reportedly being wounded in the airstrike that killed his father.
The late leader's body is expected to be returned to Iran for burial on Thursday at the Imam Reza shrine in Mashhad, his birthplace.
