In brief
The latest series of attacks underscores a sharp escalation between the United States and Iran. Drone strikes on U.S. military bases in the Middle East, Iranian retaliation in the Gulf, and fresh U.S. airstrikes targeting Iranian military assets demonstrate a cycle of tit-for-tat. The situation threatens shipping lanes in the Red Sea and could destabilize the regional economy, with oil prices climbing above $100 a barrel. Despite a 14‑point Memorandum of Understanding aimed at halting hostilities, both sides have broken the cease‑fire agreement, further heightening risks of a broader conflict.
Iran says it has carried out drone strikes on U.S. military facilities and bases across the Middle East in retaliation for the 13th consecutive night of American attacks on the country.
Explosions were reported along Iran’s Gulf coast, in western, northern and central areas. Four people died and five were injured in an attack in the south‑west, according to state media.
Iran later announced strikes on U.S‑allied Kuwait, while sirens sounded in Bahrain and Jordan, and flights were suspended at a major Iraqi airport after a reported drone crash.
It comes as Iran condemned the U.S. plan to use frozen Iranian assets to pay for war damages, signaling further escalation between the two countries.
On Thursday, U.S. President Donald Trump said damages to ships and cargo in the Strait of Hormuz would be paid for by “Iranian money that the United States has in its possession, and controls.”
Iranian Foreign Minister Abbas Araghchi called the seizure of another country’s assets to pay for unrelated future claims an “incendiary precedent” and warned that “ensuing chaos will not be pretty or peaceful.”
In June, the U.S. and Iran agreed on a 14‑point Memorandum of Understanding (MoU) to halt military operations and reopen the Strait of Hormuz, as well as to reach an agreement to end the war over the following 60 days. Three weeks after signing, Trump declared the ceasefire “over” after Iranian attacks on ships in the strait, and U.S. strikes in response.
Point 11 of the MoU detailed that the U.S. “undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran.”
As the U.S. pushes to regain control over the Strait of Hormuz, growing concern has emerged over new threats to shipping in the Red Sea from Yemen’s Iran‑backed Houthi rebels. That has helped push the price of crude oil back over $100 a barrel, the highest level since May.
Trump separately on Thursday vowed “major military punishment” against Iran for Houthi attacks and later told a news website that he was considering restarting major combat operations in Iran and launching strikes “bigger than ever before.”
Tensions have been escalating between the U.S. and Iran since early July. On Thursday night, the U.S. military carried out strikes to degrade Iran’s ability to threaten civilian shipping in regional waters.
U.S. Central Command (Centcom) said it had targeted Iranian military command centers, drone storage facilities, communication networks, coastal surveillance sites and maritime capabilities. Iran’s army claimed it had launched attacks on U.S. bases in Kuwait, while Bahrain’s Interior Ministry reported that its air sirens had been sounded and Jordanian state media also said alarms were activated.
The AFP and Reuters news agencies both reported a drone crash at Iraq’s Erbil International Airport, causing a temporary stoppage. Flights have since resumed.
