US and Iran Exchange Waves of Airstrikes and Missiles in Latest Escalation

A fragile interim peace between the U.S. and Iran is on the verge of collapsing after a dramatic escalation of military strikes and economic penalties on Tuesday.

Washington launched an extensive wave of airstrikes against dozens of Iranian coastal targets hours after revoking a temporary license that allowed Tehran to sell oil on the open market.

Tehran immediately retaliated with missile and drone strikes against Gulf states hosting U.S. military bases, threatening to completely unravel the memorandum of understanding signed on June 17 to wind down the war.

A Massive Military Escalation

U.S. Central Command confirmed it completed strikes hitting more than 80 targets near the strategic Strait of Hormuz, including air-defense systems, command and control networks, antiship missile sites, and over 60 Iranian small boats.

A senior U.S. official stated the bombardment was four to five times more extensive than any previous action taken since last month's peace agreement.

The latest friction began early Tuesday when the Islamic Revolutionary Guard Corps (IRGC) fired anti-ship cruise missiles and one-way attack drones at commercial vessels crossing a U.S.-coordinated shipping route near Oman.

Three ships were struck, prompting U.S. forces to intercept several incoming drones.

Iran's foreign ministry justified the action by claiming vessels using uncoordinated routes were disrupting maritime safety protocols.

U.S. officials expressed surprise at the timing of the assault, which occurred amid ongoing negotiations and the funeral of former supreme leader Ayatollah Ali Khamenei.

Regional Fire and Diplomatic Retaliation

Iran responded to the U.S. bombardment by launching drones and ballistic missiles at Bahrain and Kuwait, two Gulf nations hosting U.S. military installations.

Air defense sirens sounded across both states as Kuwaiti officials confirmed their forces were actively confronting hostile missile and drone attacks.

In Tehran, parliament speaker and chief negotiator Mohammad Bagher Ghalibaf accused Washington of violating the June 17 memorandum of understanding through fresh airstrikes and the reinstatement of economic sanctions.

Ghalibaf declared on social media that the era of bullying was over and that Iran would not fold under pressure.

U.S. forces targeted several familiar locations during the latest raids, including Sirik, Qeshm, Bandar Abbas, Abu Musa Island, and the Tunbs Islands.

These sites had been heavily contested during the initial phase of the war from Feb. 28 until the April 7 ceasefire.

U.S. officials noted that Iran had spent the interim period reconstituting its military capabilities, repairing hundreds of damaged launchers, and deploying portable radars.

Economic Warfare and Global Fallout

The military exchange followed a decisive move by the Treasury Department to revoke a June 21 temporary license that allowed Iran to sell oil and access dollar-denominated revenue.

The license had served as the primary financial incentive to draw Tehran into a 60-day diplomatic process aimed at dismantling its nuclear program.

Global markets reacted immediately to the policy reversal, with Brent crude oil prices climbing approximately 5% to nearly $76 per barrel.

The surge directly challenges prior assertions by President Donald Trump that his administration's efforts to de-escalate the conflict had successfully lowered domestic energy costs.

The sudden return to hostilities highlights the deep ambiguities left unresolved by the interim agreement, particularly regarding maritime jurisdiction inside the chokepoint.

While daily traffic through the Strait of Hormuz had recently stabilized at 30 to 60 crossings, American warships remain positioned to fully reinstate a total blockade of Iranian ports.

NATO Consultations in Türkiye

The crisis unfolded as President Trump arrived in Ankara, Türkiye, for a meeting of North Atlantic Treaty Organization leaders.

While Trump has expressed a desire to find a permanent diplomatic resolution to the conflict that began in February, officials confirm he has simultaneously weighed a return to all-out war.

Other NATO leaders have strongly urged an immediate end to the conflict to protect global energy corridors.

Several member states expressed a willingness to help secure maritime traffic through the Persian Gulf, though analysts note such a mission is highly unlikely if sustained fighting resumes between the primary combatants.

Technical negotiations aimed at a final nuclear agreement are currently paused for Khamenei’s funeral, with individuals close to the talks reporting that no substantive progress has been achieved by the U.S. and Iranian delegations.