Tensions in the Gulf exploded early Sunday as the US and Iran exchange strikes over control of the Strait of Hormuz. Tehran said it hit a vessel on an “unapproved route” before closing the waterway.
The incident threatens global shipping and ongoing diplomatic efforts. Oil markets reacted immediately, with analysts warning of price shocks if the strait remains blocked for any length of time.
Iran’s Islamic Revolutionary Guard Corps said it had “struck and brought to a halt” a ship that switched off its tracking systems. The IRGC called it a threat to maritime security.
“A vessel that had jeopardised maritime security by switching off its systems was struck and brought to a halt,” the IRGC navy said in a statement without naming the vessel.
Hours later, US Central Command confirmed retaliation. American forces hit at least 140 targets across Iran in what it called a bid to “degrade Iran’s ability to attack civilian mariners.”
The Strikes And The Damage
The US targets included missile sites, drone bases, naval facilities, ammunition depots, and surveillance locations. Commanders said the operation was limited but direct.
“The United States is imposing a heavy cost by continuing to degrade Iran’s ability to attack civilian mariners and commercial ships freely transiting the strait,” US Central Command stated.
Iran reported a Cyprus-flagged container ship was hit. US officials said it suffered “significant engine room damage” and that one civilian crew member was missing.
The UK Maritime Trade Operations agency confirmed damage to a container ship nine nautical miles east of Oman. It reported fire at the rear of the vessel.
Regional air defenses activated soon after. The UAE and Kuwait said they were intercepting missiles and drones, while Bahrain sounded air raid sirens and urged people to seek shelter.
“The explosions heard across the country are the result of ongoing engaging operations of missiles and UAVs,” the UAE government said in a public advisory.
Strait Of Hormuz Closure Announced
The IRGC then escalated further. It said it had disabled a second vessel and fired ballistic missiles at the US Al Udeid air base in Qatar.
Tehran claimed it destroyed a fighter jet maintenance center and a command and control facility at the base. The US has not yet confirmed those specific damages.
“Strait of Hormuz is now closed until further notice” and at least until “the end of US interference in this region,” the IRGC declared in its statement.
About 20% of the world’s oil passes through Hormuz. A prolonged closure would disrupt energy supplies, insurance costs, and shipping routes across Asia, Europe, and the Middle East.
Europe is already discussing proposals to allow navigation fees in the strait as a way to fund security escorts. The idea has divided shipping companies and governments.
Australia called for restraint. A spokesperson for Foreign Minister Penny Wong said, “We want to see negotiations between the US and Iran continue, the ceasefire to resume and the strait of Hormuz to be kept open.”
“We call on Iran to abide by its obligations under the agreement, including to ensure safe passage through the strait of Hormuz,” the spokesperson added on Sunday.
Diplomatic talks were underway in Oman before the flare-up. Iranian Foreign Minister Abbas Araqchi met Omani counterpart Sayyid Badr Albusaidi to discuss “safe passage of ships.”
A senior Iranian source told Reuters that Iran, the US, Qatar and Pakistan had tentatively agreed to negotiate in a call arranged by mediators while Araqchi was in Oman.
It was unclear if that call happened after the strikes. The timing suggests diplomacy is now on hold until both sides assess damage and casualties.
The latest violence follows heated rhetoric on Saturday. Iran’s new supreme leader Mojtaba Khamenei vowed “vengeance” for the killing of his father, former leader Ali Khamenei.
“Vengeance is the will of our nation and must inevitably be carried out,” Mojtaba Khamenei wrote. “Whether we are present or not, it will come to pass,” he added.
He said Iran had compiled a list of individuals to be targeted. The statement came days after his father’s funeral and amid ongoing hostilities.
President Donald Trump responded forcefully on Truth Social. He warned that any attempt on his life would lead the US to “completely decimate” Iran.
“1000 missiles are locked and loaded and aimed at the Islamic Republic of Iran,” Trump posted, adding “thousands of more to immediately follow” if Iran acted.
Trump also declared the interim ceasefire over. That agreement had paused fighting after US-Israeli strikes in February that killed the then supreme leader.
News outlets reported Washington gave Tehran a deadline of Saturday to stop firing on commercial ships and to acknowledge Hormuz is open. That deadline passed without compliance.
Qatari mediators traveled to Iran on Friday in a last push to salvage talks. Their delegation reportedly carried proposals for monitored shipping lanes and limited inspections.
The IRGC says it will not reopen the strait until the US stops “interference.” Washington says it will not negotiate under threat and will protect freedom of navigation.
Oil traders are bracing for volatility. Insurance premiums for tankers in the Gulf have already spiked, and some operators are rerouting around the Cape of Good Hope.
The Middle East shipping crisis is now the most acute since 2019. That year, attacks on tankers near Fujairah pushed insurance rates to record highs for months.
Humanitarian groups fear impact on food and medicine. Many Gulf states import staples through Hormuz, and delays could drive inflation in vulnerable communities.
Military analysts say both sides are testing limits. Iran wants leverage in negotiations, while the US wants to deter further attacks without triggering full-scale war.
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“The United States is imposing a heavy cost,” but also signaling openness to talks if Iran halts strikes on shipping, a US defense official told reporters anonymously.
Iran’s message is different. By closing the strait, it is asserting control over a chokepoint and linking maritime access to broader political demands.
The coming days will decide if diplomacy resumes. Oman remains the key mediator, and Qatar is pressing both sides to return to the table quickly.
For now, sailors are being told to avoid the area. Navies from the US, UK, and regional allies have increased patrols near the entrance to the Gulf.
The world is watching. A single miscalculation in these narrow waters could ignite a much larger conflict neither side says it wants.
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