U.S. President Donald Trump announced on Wednesday, July 8, 2026, that the interim agreement to pause fighting with Iran was "over." Despite his declaration, he indicated that negotiations could continue, though he expressed skepticism about their success, stating, "They can talk, but I think they’re wasting their time." This statement came after Iran targeted U.S. military installations in Bahrain and Kuwait, including the U.S. Navy’s 5th Fleet in Bahrain and U.S. Army forces in Kuwait. Kuwait reported intercepting two ballistic missiles and 13 drones, resulting in power outages from shrapnel. U.S. Central Command confirmed launching strikes against Iranian targets, including air defense systems, radars, and over 60 small boats of the Revolutionary Guard, in response to Iranian attacks on three commercial ships in the Strait of Hormuz.
The renewed hostilities followed the U.S. revocation of a license that had permitted Iran to openly sell crude oil in U.S. dollars, a concession granted as part of the interim deal. The U.S. Treasury had issued this license on June 22, allowing sales through August 21, but revoked it on Tuesday, giving Iran until July 17 to wind down transactions. This move, combined with the escalating strikes, caused Brent crude oil prices to jump over 6% after Trump's comments, hitting a two-week high. Analysts warned that a prolonged conflict could significantly impact global energy shipments through the Strait of Hormuz, a critical waterway for a fifth of the world's traded oil and natural gas.
The attacks on shipping occurred near Oman, with one tanker catching fire and two others sustaining damage. Qatar condemned the strike on a tanker carrying its natural gas, holding Iran "fully legally responsible." The incident further complicated efforts to establish a permanent peace deal, which was intended to address issues like the full reopening of the strait and Iran's nuclear program. Anwar Gargash, a senior diplomat from the United Arab Emirates, characterized Iran's actions as an indication of its inability to commit to de-escalation, while a U.S. official stated that Iran's actions in the Strait were "unacceptable" and would face consequences.
