The United States and Iran have significantly escalated their exchange of attacks following the killing of two US service members and the disappearance of another in Jordan on Friday. In retaliation, the US launched air strikes on Saturday night, targeting Iranian military coastal surveillance and air defense facilities, maritime capabilities, and missile and drone storage sites. US military officials stated these attacks were an eighth consecutive night of strikes and were designed to degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz and punish the Islamic Revolutionary Guard Corps (IRGC) for the attack in Jordan. The US death toll in the conflict has now reached 16, with over 430 wounded service members.
Iran has also carried out its own strikes, with Kuwaiti officials reporting that an electricity and water plant was hit for the second time in two days, causing a fire. Bahrain also reported intercepting an attack. Iranian media claimed an under-construction nuclear power plant in Darkhoveyn and Qeshm Island in the Strait of Hormuz were struck by the US. Iran's health ministry reports at least 50 people killed and over 500 injured in US strikes over the past three weeks. Kuwait, Jordan, and Bahrain activated air defenses, and Israel warned about potential spillovers from missiles launched towards Jordan. The Gulf Cooperation Council accused Tehran of targeting civilian infrastructure.
The preliminary ceasefire agreement between Washington and Tehran, which was struck in June, collapsed within weeks, with President Donald Trump declaring it "over" on July 8. This renewed escalation has impacted global markets, with Brent crude futures for September delivery advancing 4.6% to $88.10 a barrel and US West Texas Intermediate (WTI) futures for August delivery gaining 4.5% to settle at $82.49 on Friday. Both benchmarks saw approximately 16% gains for the week, reaching their highest levels since mid-June due to the ongoing unrest in the Middle East. The US has reimposed a blockade of Iranian ports, and Tehran has declared the Strait of Hormuz closed.
