U.S. military strikes against Iran entered a second day on Monday, part of a renewed round of fighting over control of the Strait of Hormuz that threatens a fragile interim agreement and has already spread to Yemen. An attack on Sanaa airport prompted a dispute between the Yemeni government and the Iran-backed Houthi movement over who carried out the strike. CENTCOM said it completed another series of strikes on Iranian air defense systems, coastal radars, missile and drone capabilities, while Iran held talks with mediators from Qatar, Pakistan and Oman to try to prevent further escalation.
U.S. attacks reportedly killed two and wounded three in Iran’s oil-producing Khuzestan province in the southwest, according to Fars and Tasnim news agencies. Media and residents also reported explosions near Bandar Abbas and Qeshm Island, Mehr agency said. In retaliation, the Islamic Revolutionary Guard Corps claimed attacks against targets in 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 settling 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 vessel derailed negotiations. In Yemen, Houthi military spokesman Yahya Saree warned the strike on Sanaa airport “will not go unanswered or unpunished,” signaling the regional conflict could spread beyond Iran.
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Saudi Arabia says it struck back after Houthi ballistic missile attack from Yemen
The Saudi-led military coalition that has intervened in Yemen since 2015 said on Monday it responded to a ballistic missile attack launched by Houthi rebels, after the Shiite movement accused Riyadh of bombing Sanaa International Airport.
“Air defenses responded to a ballistic missile threat launched by the terrorist Houthi militia toward the southern region,” said Turki al-Malki, spokesperson for the Saudi-led Coalition to Support the Legitimacy in Yemen, which backs Yemen’s internationally recognized government.
European stock markets close slightly higher amid Middle East uncertainty
European stock markets closed modestly higher on Monday after a day marked by renewed hostilities and rising oil prices, along with concerns about the technology sector and the outlook for interest rates.
London finished up 0.01%, Paris gained 0.31%, Frankfurt rose 0.19%, Milan added 0.37% and Madrid advanced 0.25%.
Guterres warns of military escalation in the Gulf after U.S. and Iranian attacks
United Nations Secretary-General António Guterres expressed concern on Monday about U.S. strikes against Iran and Tehran’s attacks on ships in the Strait of Hormuz and on neighboring countries.
Guterres voiced his “deep concern about the serious escalation and resumption of military confrontations in the Gulf region,” his spokesman Stéphane Dujarric said.
Oil rises more than 4% as U.S.-Iran tensions increase
Oil prices jumped 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 gains came amid mounting military tension between the United States and Iran, reviving questions about the security of transit through the Strait of Hormuz.
The energy price surge 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 climbed 0.63% and the 5-year yield 0.88% — reflecting investor caution about an escalation that could disrupt global energy trade.
CENTCOM confirms first combat use of maritime drones in strike on Iranian naval base at Bandar Abbas
The U.S. Central Command (CENTCOM) said its forces successfully attacked a submarine and ship maintenance facility in Iran using multiple one-way aerial attack drones. CENTCOM reported that three unmanned surface vessels, model Corsair, struck the port area of the Bandar Abbas Naval Base.
According to CENTCOM, the attack was the first reported combat use of U.S. maritime drones. The command said the strikes the previous night “degraded Iran’s ability to continue attacking commercial maritime traffic,” part of the broader military escalation that has put transit through the Strait of Hormuz at risk.
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Trump says U.S. will charge a 20% fee to protect ships in the Strait of Hormuz
President Donald Trump declared 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 “IRAN BLOCKADE,” which he described as preventing only Iranian ships and 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 U.S. 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 transiting the waterway to cover the costs of providing security for “this very volatile section of the world.” “Process and training begin immediately,” he added.
The announcement intensifies Trump’s rhetoric about the strait after he had already said in a Fox interview that Washington would become its “guardian” and would be compensated for doing so, amid the U.S.-Iran military escalation and Iran’s warning that any Gulf cooperation with the United States over the strait would be considered “an act of war.”
The full report is available at the link.
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 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 U.S. “must be held accountable” for jeopardizing the security of global energy shipments.
In a post on X, Mohebi added that Tehran “will continue to exercise its sovereignty and manage the Strait of Hormuz,” signaling that Iran does not intend to cede operational control of the waterway despite U.S. pressure.
The accusation followed a warning from the Khatam al-Anbiya military command, which called any Gulf cooperation with Washington over the strait “an act of war,” after President Trump said the U.S. would become the strait’s “guardian” and should be compensated for protecting it.
Wall Street opens lower as U.S.-Iran tensions and semiconductor sell-off weigh
Stocks on Wall Street mostly fell on Monday morning as markets reacted to rising oil prices and a pullback in semiconductor shares, while investors awaited upcoming corporate earnings and economic data. Oil jumped more than 3% amid escalating tensions between the United States and Iran, renewing concerns about energy infrastructure in the Strait of Hormuz.
U.S. semiconductor stocks declined early after a weak session on South Korea’s Kospi, where SK hynix plunged. About ten minutes after the opening bell, 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 escalating, are pushing oil prices up, which raises Treasury yields, while the SK hynix sell-off pulls down memory-linked stocks, pressuring 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 to Congress by Federal Reserve Chair Kevin Warsh, and the latest consumer price index data.
Iran warns Gulf states: cooperating with the U.S. in Hormuz will be treated as “an act of war”
The Iranian military warned Gulf countries on Monday that any cooperation with the United States in managing the Strait of Hormuz would be considered “an act of war,” as exchanges of hostilities between Tehran and Washington resumed. A spokesperson for the Khatam al-Anbiya military command delivered the warning in a video message to regional nations.
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 dissuade Washington’s regional allies from participating in any joint administration of the strait.
The statement came hours after President Trump said the United States would become the Strait of Hormuz’s “guardian” and should be paid to protect it, amid a military standoff that has put the route at risk.
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 exchanges of attacks with Iran in the strategic waterway. “We are taking control of the strait. They have nothing. They have nothing,” Trump told Fox News, referring to what he portrayed as Iran’s diminished military capability.
The president added that the United States will 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 interview.
He also issued a stern warning to Iran after the breakdown 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 said Washington had reached an agreement with Tehran that was later violated: “We had an agreement… and they broke it. They always break it. So we are going to hit them very hard and we’re going to stay in the strait, and we will probably administer 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 is continuing despite the military escalation.
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Video: U.S. releases footage of new wave of strikes on Iran
U.S. forces carried out another wave of strikes on Iran on Sunday, hitting dozens of targets across multiple locations with precision munitions, the U.S. Central Command (CENTCOM) said. CENTCOM reported strikes on air defense systems, coastal radars, missile and drone capabilities, and small Iranian vessels, using combat aircraft, warships, and one-way aerial and maritime attack drones.
Iranian media reported Sunday strikes and explosions around the port cities of Sirik and Bandar Abbas — locations of military facilities on the strait — and the nearby island of Qeshm. Iran’s foreign ministry condemned the weekend U.S. strikes as “aggressive.” Reuters could not independently verify the location or date of the video footage and found no earlier online version published before July 12.
Houthis say they will respond to strike on Sanaa airport
The Iran-backed Houthis in Yemen said on Monday they would respond to the strike on Sanaa airport, which they initially blamed on Saudi Arabia, although the attack was claimed by the Yemeni government aligned with Riyadh. Houthi 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 also warned that “this aggression will not go unanswered or unpunished,” indicating the rebel group could intensify its actions amid growing regional tensions linked to the U.S.-Iran confrontation.
Yemeni government claims strike on Sanaa airport; Houthis blame Saudi Arabia
Yemen’s internationally recognized government said on Monday it carried out the strike on Sanaa airport after a dispute over an Iranian plane that was carrying a Houthi delegation; the Houthi group had earlier blamed Saudi Arabia. “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; as a result, the runway was targeted,” Yemen’s Defense Ministry said. Earlier, Houthi channel Al Masirah reported that “a Saudi aggression attacked the runways of Sanaa International Airport.”
The Iran-backed Houthis said on Monday they would respond to the airport strike, which they attributed to Saudi Arabia, while the Yemeni government backed by Riyadh claimed responsibility for the operation. Houthi military 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 Guards claimed attacks on U.S. facilities in the Gulf, including bases in Bahraini territory. Bahrain’s Defense Forces accused Iran of continuing to target civilians in the kingdom.
Meanwhile, 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, citing the province’s deputy security governor. Iran has not released an official casualty toll since the renewed large-scale strikes began last week, but state media reports and isolated incident statements suggest about 20 people have been killed by the recent U.S. bombardments. At the start of the war, thousands had died, mostly in Iran and Lebanon.
Bahrain’s military accuses Iran of attacking civilians
On Monday, Bahrain’s armed forces accused Iran of targeting civilians in its latest attacks on the kingdom, after Tehran said it had struck U.S. military sites and infrastructure there.
“Iran continues its systematic hostile behavior through its brutal missile and drone attacks directed at civilians in the Kingdom of Bahrain,” the Bahraini 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, following an exchange of strikes between Tehran and Washington.
“Media outlets and residents reported hearing explosions around midday near Bandar Abbas and Qeshm Island,” Mehr news agency said, adding that the explosions “appear to have originated 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 it was continuing diplomatic contacts with mediators Qatar, Pakistan and Oman to “avoid an escalation” with the United States as hostilities between the two countries resumed.
“The mediators’ role is to continue their efforts to prevent an escalation of tensions,” Foreign Ministry spokesman Esmail Baqaei 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 U.S. fails to meet its commitments
Iran announced on Monday that it would no longer honor the memorandum of understanding 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 Tehran press conference following the latest rounds of hostilities between the two adversaries.
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