U.S. military strikes against Iran entered a second day on Monday in a renewed 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 Iran‐backed Houthis over responsibility for the bombing. CENTCOM said it completed another 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 prevent further escalation.
U.S. attacks reportedly killed two and wounded three in Iran’s oil‐producing southwestern province of Khuzestan, according to the Fars and Tasnim agencies. Media outlets and local residents also reported explosions near Bandar Abbas and Qeshm Island, the Mehr agency said. In retaliation, the Islamic Revolutionary Guard Corps claimed strikes against targets in Bahrain, Jordan, Kuwait and Oman. Bahrain accused Iran of targeting “civilians,” and Jordan said it intercepted four Iranian missiles. Iran additionally 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 sides had been close to “an agreement” on Saturday before a drone attack on a vessel derailed the talks. In Yemen, Houthi military spokesman Yahya Saree warned that the attack on Sanaa airport “will not go unanswered or unpunished,” suggesting the regional conflict could expand beyond Iran.
Oil rises more than 4% as U.S.–Iran tensions grow
Oil prices climbed sharply on Monday. West Texas Intermediate traded at $74.53 per barrel, up 4.37%, while Brent rose 4.30% to $79.28. The move came amid mounting military tensions between the United States and Iran, reviving concerns about the security of shipping through the Strait of Hormuz.
The energy price surge also affected stock and bond markets: the volatility index VIX jumped 7.77%, and U.S. Treasury yields rose across the curve — the 10‐year yield increased 0.63% and the 5‐year yield 0.88% — reflecting investor caution about a potential prolonged disruption to global energy trade.
CENTCOM confirms first combat use of seaborne drones: struck a naval base in Bandar Abbas
U.S. Central Command (CENTCOM) said its forces successfully attacked an Iranian submarine and ship maintenance facility using multiple expendable air attack drones. CENTCOM reported that three unmanned surface vessels of the Corsair model struck the port at the Bandar Abbas Naval Base.
CENTCOM said the strike marked the first time U.S. forces have used seaborne drones in combat. The command added that the overnight strikes “degraded Iran’s ability to continue attacking commercial maritime traffic,” in the context of the military escalation that is disrupting transit through the Strait of Hormuz.
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Trump says U.S. will charge a 20% fee to protect ships 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 an “IRANIAN BLOCKADE,” which he described as restricting only the entry or exit of Iranian vessels or customers.
“All other countries will have fair and open use of the strait,” the president wrote on Truth Social.
Trump said the United States would be known as “THE GUARDIAN OF THE STRAIT OF HORMUZ” and that, “as a matter of FAIRNESS,” the U.S. would be reimbursed at a rate of 20% on all cargo transported to cover the costs of providing security for “this very volatile section of the world.” “The process and training will begin immediately,” he added.
The announcement intensified Trump’s rhetoric on the strait after he had earlier told Fox News that Washington would become the “guardian” of the waterway and should be compensated for protecting it, amid the military escalation with Iran and Tehran’s warning that any Gulf cooperation with the United States over the strait would be considered “an act of war.”
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The Revolutionary Guards accuse the U.S. of endangering global oil supplies by “interfering” in Hormuz
Iran’s Islamic Revolutionary Guard Corps accused the United States on Monday of endangering the global supply of oil and gas by “interfering” in the Strait of Hormuz after hostilities resumed between the two countries. IRGC spokesman Hosein Mohebi said the U.S. “must be held accountable” for risking the security of global energy supplies.
In a post on X, Mohebi added that Tehran “will continue to exercise its sovereignty and manage the Strait of Hormuz,” signaling that Iran is unwilling to cede operational control of the waterway despite U.S. pressure.
The accusation followed a warning earlier from the Khatam Al‐Anbiya military command that any Gulf cooperation with Washington in managing the strait would be considered “an act of war,” after President Trump said the U.S. would become the strait’s “guardian” and should be compensated for doing so.
Wall Street opens lower amid U.S.–Iran escalation and a drop in semiconductors
Stocks on Wall Street opened mostly lower on Monday morning as markets reacted to rising oil prices and a decline in semiconductor shares, while investors awaited upcoming corporate earnings and economic data. Oil rose more than 3% as tensions between the United States and Iran renewed concerns about energy infrastructure in the Strait of Hormuz.
U.S. semiconductor stocks fell after losses in South Korea’s Kospi, driven by a sharp drop in SK hynix. About 10 minutes after the market opened, the Dow Jones was up 0.1% at 52,676.53 points, while 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 escalating, are pushing oil prices higher and lifting Treasury yields, while the sell‐off in SK hynix is dragging down memory‐related stocks, weighing on the Nasdaq and the S&P,” said Art Hogan of B. Riley Wealth Management. This week’s calendar includes major U.S. bank earnings, testimony from Federal Reserve Chair Kevin Warsh before Congress, and the latest consumer‐price index data.
Iran warns Gulf states: cooperating with the U.S. in the Strait of Hormuz will be considered “an act of war”
Iran’s military warned Gulf states on Monday that any cooperation with the United States in managing the Strait of Hormuz would be considered “an act of war,” as hostilities between Tehran and Washington resumed. The spokesman for the Khatam Al‐Anbiya military command delivered the warning in a video message to regional nations.
The spokesman added that Iran “under no circumstances will allow… the United States to interfere in the management” of the strategic waterway, a statement intended to dissuade U.S. regional allies from joining any joint arrangement to administer the strait.
The warning came hours after President Trump said the United States would become the “guardian” of the Strait of Hormuz and should be paid for protecting it, amid the military escalation that threatens traffic through this key energy trade route.
Trump says the U.S. 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 reciprocal strikes 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 what he described as Iran’s military vulnerabilities.
He added that the U.S. would become the strait’s “guardian” and should be paid for providing protection. “We will become the guardian of the strait (…) and we should be compensated for that,” he said in the phone interview.
The president also issued a stern warning to Iran after the breakdown of the existing military arrangement, saying U.S. forces had struck Iranian military equipment overnight. “Most of their equipment no longer exists. Their anti‐aircraft guns — we hit them very hard last night,” he said. “Every time they send a drone, we hit them very hard.” Trump said Washington had reached an agreement with Tehran that was then broken: “We had a deal… and they broke it. They always break it. So we are going to hit them very hard and we will hold the strait, and we will probably manage it.”
The remarks come amid a dispute over control of the strait after Iran threatened to close it and fired warning shots at vessels attempting to transit, while the U.S. maintains that maritime traffic continues to flow normally despite the military escalation.
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Video: U.S. releases footage of the new wave of strikes on Iran
U.S. forces completed another wave of strikes against Iran on Sunday, hitting dozens of targets in multiple locations with precision munitions, the U.S. Central Command (CENTCOM) said. CENTCOM said the strikes targeted air‐defense systems, coastal radars, missile and drone capabilities, and small Iranian vessels, using combat aircraft, warships, and expendable aerial and surface attack drones.
Iranian media reported Sunday that missiles and explosions struck the port cities of Sirik and Bandar Abbas — locations of military facilities along the strait — and nearby Qeshm Island. Iran’s foreign ministry condemned the U.S. strikes over the weekend as “aggressive.” Reuters was unable to independently verify the location or date of the video footage and did not find any earlier online versions prior to July 12.
Houthis warn they will respond to the attack on Sanaa airport
Yemen’s Houthis, who are backed by Iran, said on Monday they would respond to the attack on Sanaa airport, which they blamed on Saudi Arabia; Riyadh‐backed Yemeni government forces, however, claimed responsibility for the strike. Houthi military spokesman Yahya Saree accused Saudi Arabia of “ending the period of détente and assuming full responsibility for the consequences of its aggression.”
Saree also warned that “this aggression will not go unanswered or unpunished,” indicating the group could intensify operations amid rising regional tensions linked to the U.S.–Iran confrontation.
Yemeni government claims attack on Sanaa airport; Houthis blame Saudi Arabia
The internationally recognized Yemeni government said on Monday it had struck Sanaa airport after a dispute over an Iranian plane carrying a Houthi delegation. The government said Houthi militias — “backed by the Iranian regime” — prevented Yemeni aircraft from landing at the capital’s airport and insisted on allowing an Iranian plane to enter Yemeni airspace; as a result, the government said it attacked the runway. Earlier, the Houthi channel Al Masirah reported that a Saudi attack had hit Sanaa International Airport’s runways.
The Houthis, backed by Iran, said they would respond to the attack on Sanaa airport, which they attributed to Saudi Arabia, while the Riyadh‐backed Yemeni government claimed responsibility for the operation. Houthi military spokesman Yahya Saree accused Saudi Arabia of ending the period of détente 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 attacks in southern Iran
Bahrain’s military said on Monday that its air‐defense systems intercepted and destroyed several Iranian missiles and drones launched during the day, following the Revolutionary Guard’s claim it had struck U.S. facilities in the Gulf, including bases on 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 injured seven in the early hours of Monday, citing the province’s deputy governor for security. Iran has not released an official casualty toll since large‐scale strikes resumed last week, but state media reports and local incident statements suggest roughly 20 people have died in renewed U.S. bombardments. At the start of the conflict, thousands had died, most 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 aimed at civilians in the Kingdom of Bahrain,” the Bahraini armed forces’ general command 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 on Monday in southern Iran near the Strait of Hormuz, media reported, after exchanges of strikes between Tehran and Washington.
“Media outlets and residents reported hearing explosions on Monday around midday near Bandar Abbas and Qeshm Island,” the Mehr news agency said, adding that the blasts “appear to have originated from the western coast of Bandar Abbas.”
Iran says it continues talks with mediators to “avoid escalation” with the U.S.
Iran said on Monday it is maintaining diplomatic engagements with mediators from Qatar, Pakistan and Oman to “avoid an escalation” with the United States, as hostilities between the two countries have resumed.
“The role of the mediators is to continue their efforts to prevent an escalation of tensions,” Iranian foreign ministry spokesman Esmail Baqai said, adding that Tehran had been in contact “in recent days” with Qatar and Oman — two countries Iran has struck militarily — as well as with Pakistan.
Iran says it will stop complying with the agreement if the U.S. does not meet its commitments
Iran announced on Monday that it would no longer abide by the memorandum of understanding signed with the United States if Washington did not meet 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 manner,” foreign ministry spokesman Esmaeil Baqaei said at a press conference in Tehran following the latest round of hostilities between the adversaries.
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