United States President Donald Trump has declared the interim agreement aimed at ending hostilities with Iran effectively dead after Tehran launched fresh attacks on American military installations in the Gulf, escalating tensions and raising fears of a wider regional conflict.
The latest escalation came after Iran announced it had targeted U.S. military bases in Bahrain and Kuwait in retaliation for recent American strikes on Iranian positions following attacks on oil tankers in the Strait of Hormuz.
The renewed hostilities have dealt a significant blow to the fragile ceasefire and cast doubt on the future of the interim agreement signed on June 17, which was intended to pave the way for a lasting peace after months of conflict that began with U.S.-Israeli airstrikes on Iran on February 28.
Speaking to reporters ahead of a NATO summit in Ankara, Trump said he considered the agreement finished and ruled out any immediate plans to resume negotiations with Tehran.
The U.S. president accused Iran’s leadership of acting recklessly, insisting that further diplomatic engagement would serve no useful purpose.
The renewed conflict rattled global financial markets, with oil prices surging and stock markets retreating as investors weighed the implications of prolonged instability in one of the world’s most critical energy-producing regions.
Concerns also intensified over shipping through the Strait of Hormuz after vessel-tracking data showed several oil and gas tankers reversing course to avoid the strategic waterway.
Brent crude rose by about five per cent to approximately $78 per barrel, recording its biggest single-day gain in weeks and renewing concerns over rising global energy costs and inflation.
Iran’s Revolutionary Guards said they had struck U.S. military facilities in Bahrain and Kuwait and claimed responsibility for shooting down an American MQ-9 drone during the operation.
The attacks followed U.S. military operations targeting Iranian coastal defence systems, missile sites, drone launch facilities and Revolutionary Guards vessels. Washington said the strikes were intended to impose significant costs on Iran following attacks on commercial shipping despite the ceasefire.
The U.S. Central Command described Iran’s latest actions as a dangerous violation of the ceasefire that threatened freedom of navigation in the Gulf.
NATO Secretary-General Mark Rutte defended the American military response as necessary, while European Union foreign policy chief Kaja Kallas condemned Iran’s attacks on Bahrain and Kuwait, warning that the renewed violence had further undermined efforts to achieve a lasting peace.
Iran’s Khatam al-Anbiya Central Headquarters condemned the U.S. operation as an act of aggression and warned that Tehran would respond forcefully, insisting it would not tolerate foreign interference in the Strait of Hormuz.
Iranian Parliament Speaker Mohammad Baqer Qalibaf also accused Washington of breaching the ceasefire through renewed military operations, additional oil sanctions and continued pressure on Iran’s strategic interests, maintaining that the country would not succumb to what he described as intimidation.
Iranian state media later reported explosions in several southern locations, including Kharg Island, Qeshm Island, Sirik and Bandar Abbas. However, U.S. officials did not confirm reports of strikes on Kharg Island, Iran’s main crude oil export terminal.
A U.S. defence official said the latest military operation focused on disabling Iran’s air defence systems, surveillance facilities, anti-ship missile batteries and drone infrastructure, adding that no civilian casualties had been reported.
The Strait of Hormuz remains at the centre of the crisis, with analysts warning that Iran continues to use its strategic position along the vital shipping route as leverage in its standoff with Washington while seeking stronger security guarantees in any future peace arrangement.
The crisis deepened further after the United States revoked a temporary licence permitting limited sales of Iranian oil and petrochemical products. Iran’s Foreign Ministry condemned the decision as a violation of the interim agreement and vowed to take all necessary measures to safeguard the country’s national interests and security.
