US and Iran trade fire as tensions rise over Strait of Hormuz

The United States launched a new attack on Iran Sunday evening, continuing a cycle of strikes between the two nations. Iranian state media reported casualties, with one person killed and four injured in southwestern Iran. Within hours, Iran's Islamic Revolutionary Guard Corps (IRGC) claimed to have struck U.S. military bases in Kuwait, Jordan, and Bahrain, marking a significant escalation.

These escalating attacks cast doubt on the future of an interim U.S.-Iran agreement signed in June, which aimed to reopen the Strait of Hormuz and eventually end the conflict. Conflicting claims have emerged regarding the status of the strait, with Iran asserting it is closed indefinitely while the U.S. insists it remains open. U.S. Central Command (Centcom) announced further strikes targeting Iranian military assets, including air-defense systems and missile capabilities, stating their preparedness to ensure freedom of navigation.

Iranian state television reported explosions in several port cities, and IRNA cited a local official confirming casualties from the U.S. strikes. The renewed hostilities have already impacted global markets, with oil prices jumping significantly on Monday. Brent crude rose by 4.3% to $79.26 a barrel, and U.S.-traded oil also saw a 4.3% increase to $74.50. Energy prices have been volatile in recent months due to developments in the conflict.

The conflict's origins trace back to February 28, when the U.S. and Israel attacked Iran, leading to Tehran effectively closing the Strait of Hormuz, a critical route for approximately 20% of the world's oil and LNG shipments. The IRGC's retaliatory attacks targeted U.S. bases and allies across the region, including Qatar and the UAE. U.S. President Donald Trump had previously declared the ceasefire over, while Iran's Foreign Minister Abbas Araghchi accused the U.S. of violations.