U.S. military strikes against Iran entered a second day on Monday in a new wave of fighting over control of the Strait of Hormuz. The escalation threatens a fragile interim agreement and has already spread to Yemen, where an attack on Sanaa airport prompted a dispute between the Yemeni government and the Huthi rebels—backed by Iran—over who was responsible. CENTCOM confirmed it had carried out a new round of strikes against Iranian air defense systems, coastal radars, missile and drone capabilities, while Tehran held talks with mediators from Qatar, Pakistan and Oman in an effort to avoid further escalation.
U.S. attacks reportedly killed two and injured three in Iran’s oil-producing southwestern Khuzestan province, according to Fars and Tasnim agencies. Media and residents also reported explosions near Bandar Abbas and Qeshm Island, Mehr reported. In retaliation, the Islamic Revolutionary Guard Corps claimed attacks on Bahrain, Jordan, Kuwait and Oman; Bahrain accused Iran of targeting “civilians,” and Jordan said it intercepted four Iranian missiles. Iran also fired “warning shots” at two vessels attempting to transit the Strait of Hormuz.
The escalation pushed oil prices higher, with Brent rising as much as 5% before easing to around $78 per barrel. President Donald Trump said the two countries had been close to “a deal” on Saturday, which collapsed after a drone strike on a vessel derailed negotiations. In Yemen, Huthi military spokesman Yahya Saree warned the attack on Sanaa airport “will not go unanswered or unpunished,” signaling that the regional conflict could spread beyond Iran.
European stock markets close slightly higher amid Middle East uncertainty
European stock markets closed with small gains on Monday after a session dominated by renewed hostilities and rising oil prices, alongside concerns about the technology sector and the outlook for interest rates.
London finished up marginally by 0.01%, Paris gained 0.31%, Frankfurt 0.19%, Milan 0.37% and Madrid 0.25%.
The Saudi-led coalition says it intercepted missiles launched by the Huthis. The coalition reported intercepting ballistic missiles fired by the Huthis toward the southern region of the Kingdom.
Guterres warns of Gulf military escalation after US and Iranian attacks
UN Secretary-General António Guterres warned on Monday about the U.S. strikes on Iran and Tehran’s attacks on ships in the Strait of Hormuz and on neighboring countries.
Guterres expressed his “deep concern about the serious escalation and the resumption of military confrontations in the Gulf region,” his spokesman Stéphane Dujarric said.
Oil rises more than 4% as US-Iran tensions grow
Oil prices climbed sharply on Monday, with West Texas Intermediate trading at $74.53 per barrel, up 4.37%, while Brent rose 4.30% to $79.28. The increase occurred amid growing military tensions between the United States and Iran, which renewed doubts about the security of transit through the Strait of Hormuz.
The energy price surge also affected equity and bond markets: the VIX volatility index jumped 7.77%, while U.S. Treasury yields rose across the curve—the 10-year yield increased 0.63% and the 5-year 0.88%—reflecting investor caution about an escalation that could disrupt global energy trade for an extended period.
CENTCOM confirms first combat use of maritime drones: struck a naval base in Bandar Abbas
U.S. Central Command (CENTCOM) said its forces successfully struck a submarine and ship maintenance facility in Iran using multiple single-use aerial attack drones. CENTCOM reported that three Corsair unmanned surface vessels struck the port at Bandar Abbas Naval Base.
The operation marked, CENTCOM said, the first time U.S. forces have used maritime drones in combat. The command stated the strikes the previous night “degraded Iran’s ability to continue attacking commercial maritime traffic” amid the military escalation that has put Strait of Hormuz transit at risk.
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Trump says US will charge a 20% fee to protect vessels in the Strait of Hormuz
President Donald Trump announced that the Strait of Hormuz is and will remain “OPEN,” with or without Iran, and said the United States is reinstating what he called the “IRANIAN BLOCKADE,” which he described as intended to bar only Iranian ships or customers from entering or leaving.
“All other countries will have fair and open use of the strait,” the president wrote on Truth Social.
Trump said that henceforth the United States will be known as “THE GUARDIAN OF THE STRAIT OF HORMUZ,” and that, “as a matter of FAIRNESS,” the country will be reimbursed at a rate of 20% on all cargo transported to cover costs of providing security for “this very volatile section of the world.” “Training and processes will begin immediately,” he added.
The announcement amplifies Trump’s rhetoric about the strait after he earlier told Fox News that Washington would become the route’s “guardian” and be compensated for custody, amid rising tensions with Iran and Tehran’s warning that any Gulf cooperation with the U.S. on the passage would be considered “an act of war.”
The full report is at this link.
Revolutionary Guards accuse US of endangering global oil supply by “interfering” in Hormuz
Iran’s Islamic Revolutionary Guard Corps on Monday accused the United States of endangering the global oil and gas supply by “interfering” in the Strait of Hormuz after hostilities between the two countries resumed. IRGC spokesman Hosein Mohebi said the U.S. “must be held accountable” for jeopardizing energy security worldwide.
In a post on X, Mohebi added that Tehran “will continue to exercise its sovereignty and management of the Strait of Hormuz,” signaling Iran’s unwillingness to cede operational control of the waterway despite U.S. pressure.
The accusation followed a warning from the Khatam Al-Anbiya military command that any Gulf cooperation with Washington on managing the strait would be an “act of war,” after President Trump said the U.S. would become its “guardian” and should be compensated for protecting it.
Wall Street opens lower as US-Iran escalation and chip stocks weigh
U.S. stocks mostly fell on Monday morning as markets digested higher oil prices and weakness in semiconductor shares, while investors prepared for upcoming corporate earnings and economic data. Oil rose more than 3% amid escalating tensions between the United States and Iran, reviving concerns about energy infrastructure in the Strait of Hormuz.
U.S. semiconductor stocks dropped early after a sharp decline for SK hynix in South Korea’s Kospi. About ten minutes after the open, the Dow Jones was up 0.1% at 52,676.53, the S&P 500 was down 0.4% at 7,547.53 and the Nasdaq Composite fell 0.9% at 26,039.50.
“Tensions with Iran, which are intensifying, are pushing oil prices higher, which is lifting Treasury yields, while the sell-off in SK hynix drags memory-linked stocks lower, putting pressure on the Nasdaq and the S&P,” said Art Hogan of B. Riley Wealth Management. This week’s agenda includes major U.S. bank earnings, the Federal Reserve chair’s testimony to Congress, and the latest consumer price index data.
Iran warns Gulf states: cooperating with the US in the Strait of Hormuz will be considered “an act of war”
Iran’s military warned Gulf countries on Monday that any cooperation with the United States in managing the Strait of Hormuz would be regarded as “an act of war,” as hostilities between Tehran and Washington resumed. A spokesman for the Khatam Al-Anbiya military command issued the warning in a video message to regional states.
The same spokesman said Iran “under no circumstances will allow… the United States to interfere in the management” of the strategic waterway, a message intended to deter Washington’s regional allies from joining any joint administration of the strait.
The statement came hours after President Trump said the U.S. would become the “guardian” of the Strait of Hormuz and should be paid to protect it, amid the military escalation that has put transit along this key energy trade route at risk.
Trump says the US is “taking control” of the Strait of Hormuz
President Donald Trump said on Monday that the United States was “taking control” of the Strait of Hormuz after days of exchanges of attacks with Iran in the vital waterway. “We are taking control of the strait. They have nothing. They have nothing,” Trump said in an interview with Fox News, referring to Iran’s military capabilities.
The president added that his country would become the “guardian” of the strait and that Washington should be paid for protecting it. “We will become the guardian of the strait (…) And we should be compensated for that,” he said.
He also issued a stern warning to Iran after the collapse of the existing military agreement and said U.S. forces struck Iranian military equipment overnight. “Most of their equipment no longer exists. Their anti-aircraft gun—we hit it very hard last night,” he said. “Every time they send a drone, we hit them very hard.” Trump claimed the U.S. had reached an agreement with Tehran that was later broken: “We had a deal… and they broke it. They always break it. So we are going to hit them very hard and we are going to keep the strait, and we will probably manage it.”
The remarks came amid the dispute over control of the strait, after Iran threatened to close it and fired “warning shots” at ships attempting to cross, while Washington maintains maritime traffic is continuing normally despite the military escalation.
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Video: US releases footage of new wave of strikes on Iran
U.S. forces completed a new wave of strikes on Iran on Sunday, hitting dozens of targets at multiple locations with precision munitions, CENTCOM said. The command said air defense systems, coastal radars, missile and drone capabilities, and small Iranian vessels were targeted using fighter aircraft, warships, and single-use aerial and maritime attack drones.
Iranian media reported missile strikes and explosions around the port cities of Sirik and Bandar Abbas—where military facilities are located along the strait—and nearby Qeshm Island. Iran’s foreign ministry condemned the weekend U.S. strikes as “aggressive.” Reuters could not independently verify the time or location of the video footage, and no prior versions were found online before July 12.
The Huthis warn they will respond to the attack on Sanaa airport
Yemen’s Huthi rebels, backed by Iran, said on Monday they would respond to the attack on Sanaa airport, which they attributed to Saudi Arabia, although the Yemeni government aligned with Riyadh claimed responsibility. Huthi military spokesman Yahya Saree accused Saudi Arabia of “ending the phase of de-escalation and assuming full responsibility for the consequences of its aggression.”
Saree warned that “this aggression will not go unanswered or unpunished,” indicating the rebels could intensify their actions amid rising regional tension linked to the U.S.-Iran conflict.
Yemeni government claims it struck Sanaa airport; Huthis blame Saudi Arabia
The internationally recognized Yemeni government said on Monday it attacked Sanaa airport after a dispute over an Iranian plane transporting a Huthi delegation. The government said the Huthi militias—backed by Iran—prevented Yemeni national aircraft from landing in the capital and insisted on allowing an Iranian plane to enter Yemeni airspace; therefore, it struck the runway, the defense ministry said. Earlier, the Huthi channel Al Masirah had reported that “Saudi aggression struck the takeoff and landing runways of Sanaa International Airport.”
The Huthis, backed by Iran, reiterated on Monday that they would respond to the attack on Sanaa airport, which they attributed to Saudi Arabia, while the Riyadh-backed Yemeni government claimed responsibility. Huthi spokesman Yahya Saree accused Saudi Arabia of “ending the phase of de-escalation and assuming full responsibility for the consequences of its aggression,” and warned: “We affirm that this aggression will not go unanswered or unpunished.”
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Bahrain intercepted Iranian drones and missiles amid reports of strikes in southern Iran
Bahrain’s military said on Monday that its air defenses intercepted and destroyed several Iranian missiles and drones launched during the day, after the Revolutionary Guard claimed it had struck U.S. military installations in the Gulf, including bases in Bahraini territory. Bahrain’s Defense Forces accused Iran of continuing to target the kingdom’s civilian population.
Separately, the semi-official Iranian ISNA agency reported that a U.S. strike on a target in Isfahan province in central Iran killed one person and wounded seven in the early hours of Monday, according to the province’s deputy governor for security. Iran has not released an official casualty toll since large-scale cross-border strikes resumed last week, but state media reports and local accounts of isolated incidents suggest about 20 people have died from renewed U.S. bombing. At the start of the war, thousands died, mostly in Iran and Lebanon.
Bahrain’s military accuses Iran of attacking civilians
On Monday, Bahrain’s armed forces accused Iran of attacking civilians in its recent strikes against the kingdom, after Tehran said it had targeted U.S. military facilities and infrastructure there.
“Iran continues its systematic hostile behavior through its atrocious missile and drone attacks directed at civilians in the Kingdom of Bahrain,” the general command of Bahrain’s armed forces said in a statement, adding that air defenses “intercepted and destroyed several Iranian aerial attacks” on Monday morning.
Iranian media report explosions near the Strait of Hormuz
Explosions of unknown origin were heard in southern Iran on Monday, near the Strait of Hormuz, local media reported following an exchange of strikes between Tehran and Washington.
“Media and residents reported hearing explosions near Bandar Abbas and Qeshm Island around midday on Monday,” the Mehr news agency said, adding that the blasts “appear to come from the west coast of Bandar Abbas.”
Iran says it is continuing talks with mediators to “avoid escalation” with the US
Iran said on Monday it was continuing diplomatic efforts with mediators from Qatar, Pakistan and Oman to “avoid an escalation” with the United States amid renewed hostilities.
“The role of mediators is to continue their efforts to prevent an escalation of tensions,” Foreign Ministry spokesman Esmail Baqai said, adding that Tehran had been in contact “in recent days” with Qatar and Oman—two countries that Iran has attacked militarily—as well as with Pakistan.
Iran says it will stop complying with the agreement if the US does not honor its commitments
Iran announced on Monday that it would no longer honor the memorandum of understanding signed with the United States if Washington did not fulfill its commitments to end the war.
“Whenever the other party has not fulfilled its obligations, we have not fulfilled ours… We will continue to act in this way,” Foreign Ministry spokesman Esmaeil Baqaei said at a press conference in Tehran after the latest round of hostilities between the two adversaries.
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