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 Iran-backed Houthis over who was responsible. CENTCOM confirmed it had completed 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 killed two and wounded three in Iran’s Khuzestan province, the country’s southwestern oil region, according to Fars and Tasnim. Media outlets and residents also reported explosions near Bandar Abbas and Qeshm Island, according to Mehr. In retaliation, the Islamic Revolutionary Guard Corps claimed strikes against 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 cross the Strait of Hormuz.
The escalation sent 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 before a drone attack on a ship derailed negotiations. In Yemen, Houthi military spokesman Yahya Saree warned that the attack on Sanaa airport “will not go unanswered or unpunished,” signaling that the regional conflict could continue to spread beyond Iran.
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Donald Trump announced he will address the nation in prime time on Thursday amid a major escalation of hostilities with Iran.
“President Trump will address the nation on Thursday night at 9 p.m. Eastern Time (01:00 GMT Friday). Thank you for your attention!” Trump posted on his social network Truth on Monday.
U.S. missions in the United Arab Emirates suspend consular appointments
The United States announced the suspension of consular appointments in the United Arab Emirates for three days starting Monday due to the increased military tensions in the Gulf region.
“The U.S. Embassy in Abu Dhabi and the U.S. Consulate General in Dubai have canceled consular appointments from July 13 to July 15 due to the regional security situation. If you have an appointment scheduled for those dates, please do not come to the embassy or consulate. We will contact you to reschedule,” the statement said.
Iran’s foreign minister mocks Trump over proposed fee to protect ships in Hormuz
Iranian Foreign Minister Abbas Araghchi mocked President Donald Trump’s proposal to charge fees to protect ships transiting the Strait of Hormuz, saying Iran would charge a lower toll.
“Whoever ensures the safe passage of commercial vessels through the Strait of Hormuz should be compensated for that service. Iran has always been the GUARDIAN of the strait and will remain so FOREVER. Twenty percent is, of course, too much. We will be fair,” the minister wrote on social media, referring to a fee Trump had proposed earlier.
Oil prices surge more than 9%
Oil prices jumped on Monday, driven by the reestablishment of a U.S. naval blockade on Iranian ports and Washington’s intention to impose a fee for vessels transiting the Strait of Hormuz.
At 18:20 GMT, Brent crude, the international benchmark, was up 9.06% at $82.90 per barrel. U.S. West Texas Intermediate (WTI) rose 9.05% to $77.87 per barrel.
U.S. naval blockade of Iran to begin Tuesday
The United States will begin enforcing a naval blockade against all Iranian ports and oil terminals on Tuesday, the Joint Maritime Information Center (JMIC) of the U.S.-led Combined Maritime Forces said in a statement Monday.
According to JMIC, the blockade will apply to all vessels regardless of flag. The blockade will not prevent neutral shipping transiting the Strait of Hormuz to or from locations outside Iran, the statement said.
Humanitarian shipments will be allowed to pass, subject to inspections, JMIC added.
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Saudi-led coalition says it responded to Houthi ballistic missile attack
The Saudi-led military coalition intervening in Yemen since 2015 said on Monday it had responded to a ballistic missile attack launched by Houthi rebels, after the group accused Riyadh of bombing Sanaa International Airport.
“Air defenses have responded to a ballistic missile threat launched by the Houthi terrorist militia toward the southern region,” Coalition spokesperson Turki al-Malki said on X. The coalition supports Yemen’s internationally recognized government.
European stocks close with modest gains amid Middle East uncertainty
European stock markets closed with slight gains on Monday after a day marked by renewed hostilities and rising oil prices, along with concerns over the technology sector and the path of interest rates.
London closed up 0.01%, Paris gained 0.31%, Frankfurt 0.19%, Milan 0.37% and Madrid 0.25%.
Guterres warns about military escalation in the Gulf after U.S. and Iranian strikes
UN Secretary-General António Guterres warned on Monday about U.S. attacks on Iran and Iran’s strikes against ships in the Strait of Hormuz and neighboring countries.
Guterres expressed his “deep concern about the serious escalation and the resumption of military clashes in the Gulf region,” his spokesperson Stéphane Dujarric said.
Oil rises more than 4% as tensions between U.S. and Iran grow
Oil prices climbed strongly on Monday, with West Texas Intermediate trading at $74.53 per barrel, up 4.37%, and Brent rising 4.30% to $79.28. The increase came amid growing military tensions between the United States and Iran, which revived doubts about the security of transit through the Strait of Hormuz.
The energy-driven rally also affected stock and bond markets: the VIX volatility index jumped 7.77%, while U.S. Treasury yields rose across the curve — the 10-year yield gained 0.63% and the 5-year yield 0.88% — reflecting investor caution over an escalation that could disrupt global energy trade.
CENTCOM confirms first use of maritime drones in combat: struck a naval base in Bandar Abbas
The 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 said three surface unmanned vessels of the Corsair model struck the port at the Bandar Abbas Naval Base.
According to CENTCOM, the operation marked the first time U.S. forces used maritime drones in combat. The command said the night strikes “degraded Iran’s ability to continue attacking commercial maritime traffic,” amid the military escalation affecting transit through the Strait of Hormuz.
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Trump says the 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 that the United States is reinstating what he called the “IRANIAN BLOCKADE,” which he said would prevent only Iranian ships or clients from entering or leaving.
“All other countries will have fair and open use of the strait,” the president wrote on Truth Social.
Trump said the United States will henceforth be known as “THE GUARDIAN OF THE STRAIT OF HORMUZ,” and argued that, “as a matter of FAIRNESS,” the country 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.” “Training and processes will start immediately,” the president added.
The announcement deepens Trump’s public campaign regarding the strait, after he had said in an earlier Fox interview that Washington would become the waterway’s “guardian” and be compensated for doing so, amid the military escalation with Iran and Tehran’s warning that any Gulf cooperation with the United States on managing the passage would be considered “an act of war.”
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The Islamic Revolutionary Guard accuses 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 global oil and gas supplies by “interfering” in the Strait of Hormuz after hostilities resumed between the two countries. IRGC spokesperson Hosein Mohebi said the United States “must be held accountable” for jeopardizing energy security.
In a post on X, Mohebi added that Tehran “will continue to exercise its sovereignty and management of the Strait of Hormuz,” signaling that Iran refuses to cede operational control of the waterway despite U.S. pressure.
The statement followed a warning 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 United States would become its “guardian” and should be compensated.
Wall Street opens lower amid U.S.-Iran tensions and a drop in semiconductors
U.S. stocks fell broadly Monday morning as markets weighed rising oil prices and a retreat in semiconductor shares while investors looked ahead to upcoming corporate earnings and economic data. Crude prices rose more than 3% amid growing tension between the United States and Iran, reviving concerns about infrastructure in the Strait of Hormuz.
U.S. semiconductor stocks fell early following a weak session on South Korea’s Kospi and a sharp drop in SK hynix. About ten minutes after the opening, 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% to 26,039.50.
“Tensions with Iran, which are intensifying, are pushing oil prices higher, which is lifting Treasury yields, while the SK hynix sell-off drags down memory-related stocks, which in turn pressures the Nasdaq and the S&P,” said Art Hogan of B. Riley Wealth Management. This week’s agenda includes major U.S. bank earnings, testimony before Congress by Federal Reserve Chair Kevin Warsh, 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. A spokesperson for the Khatam al-Anbiya military command made the warning in a video message to regional nations.
The spokesperson said Iran “under no circumstances will allow… the United States to interfere in the management” of the strategic waterway, a message intended to dissuade Washington’s regional allies from joining any U.S.-led scheme to administer the strait.
The warning came hours after President Trump said his country would become the “guardian” of the Strait of Hormuz and should be paid for protecting it amid a military escalation that has put maritime traffic through this key energy route on edge.
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 several days of exchanges with Iran around 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 alleged military vulnerability.
The president added that his country would become the “guardian” of the strait and should be paid for protecting it. “We will become the guardian of the strait (…) And we should be compensated for that,” he said in the phone interview.
Trump also issued a stark warning to Iran after the breakdown of the existing military arrangement, saying U.S. strikes had damaged 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.” He said Washington 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 stay in the strait, and probably we will manage it.”
The remarks come amid a dispute over control of the strait after Iran threatened to close it and fired warning shots at ships attempting to transit, while Washington 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 against Iran
U.S. forces completed a new 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 it struck air defense systems, coastal radars, missile and drone capabilities, and small Iranian vessels using combat aircraft, warships, and single-use aerial and maritime attack drones.
Iranian media reported missile strikes and explosions on Sunday around the port cities of Sirik and Bandar Abbas — locations with military facilities overlooking the strait — and the nearby Qeshm Island. Iran’s Foreign Ministry condemned the U.S. strikes over the weekend as “aggression.” Reuters could not independently verify the location or date of the footage, and no earlier versions were found online before July 12.
Houthis warn they will respond to the attack on Sanaa airport
Yemen’s Iran-backed Houthis said on Monday they would respond to the attack on Sanaa airport, which they attributed to Saudi Arabia, although the internationally recognized Yemeni government backed by Riyadh claimed responsibility. Houthi military spokesman Yahya Saree accused Saudi Arabia of “ending a phase of détente and assuming full responsibility for the consequences of its aggression.”
Saree added that “this aggression will not go unanswered or unpunished,” suggesting the rebel group may intensify actions amid rising regional tensions linked to the U.S.-Iran conflict.
Yemeni government claims it attacked Sanaa airport; Houthis blame Saudi Arabia
Yemen’s internationally recognized government said on Monday it had attacked Sanaa airport after a dispute over an Iranian plane carrying a Houthi delegation; the government’s statement attributed the strike to preventing the Houthis from allowing the Iranian aircraft to land. “The Houthi terrorist militias — backed by the Iranian regime — prevented national Yemeni aircraft from landing at the capital’s airport while insisting on allowing an Iranian plane to violate Yemeni territory; consequently, the airport runway was struck,” the Yemeni Defense Ministry said. Earlier, the Houthi channel Al Masirah reported that “the Saudi aggression struck the departure and landing runways at Sanaa International Airport.”
The Houthis, backed by Iran, said on Monday they would respond to the attack on Sanaa airport, which they blamed on Saudi Arabia, though the government supported by Riyadh claimed responsibility. Houthi military spokesman Yahya Saree accused Saudi Arabia of “ending the phase of détente and taking 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 to have struck U.S. military 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, semi-official Iranian agency ISNA 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 security governor. Iran has not released an official casualty tally since large-scale cross-border strikes resumed last week, but state media reports and statements on specific incidents suggest about 20 people have died from renewed U.S. bombardments. At the start of the war, thousands were killed, 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 on the kingdom, after Tehran said it had targeted U.S. military facilities and infrastructure there.
“Iran continues its systematic hostile behavior with 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 air 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, Iranian media reported, following an exchange of strikes between Tehran and Washington.
“Media outlets and residents reported hearing explosions near Bandar Abbas and Qeshm Island on Monday at midday,” the Mehr news agency said, adding that the explosions “appear to originate from the west coast of Bandar Abbas.”
Iran says it continues talks with mediators to “avoid escalation” with the U.S.
Iran said on Monday that it continues diplomatic engagement with mediators Qatar, Pakistan and Oman to “avoid 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 states Iran has also struck — 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 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 manner,” Foreign Ministry spokesman Esmaeil Baqaei said at a press conference in Tehran following the latest round of hostilities.
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