US strikes new targets in Iran as Tehran hits Gulf states, Hormuz shipping

What Happened

The United States carried out additional strikes on Iranian military targets, hitting the southwestern Khuzestan province cities of Abadan and Mahshahr, as well as Qeshm Island, according to Iranian state media and a U.S. official cited by Reuters. These followed earlier U.S. strikes on Bushehr and Bandar Abbas aimed at degrading Iran's ability to attack commercial shipping. Iran's Islamic Revolutionary Guard Corps (IRGC) retaliated by striking two supertankers in Omani waters near the Strait of Hormuz, killing one crew member according to the United Arab Emirates, and launched aerial attacks on Kuwait, Bahrain, and claimed an attack on U.S. military facilities in Jordan. Both sides acknowledged the escalation, with President Trump scrapping a planned Strait of Hormuz levy and accusing Iran of firing first, while Iran's deputy foreign minister declared the June 17 U.S.-Iran memorandum of understanding effectively dead and accused the U.S. of violating its obligations.

Key Actors

Why It Matters

The unraveling of the U.S.-Iran memorandum of understanding and the resumption of direct military exchanges mark a dangerous escalation in the protracted low-intensity conflict, threatening to spiral into full-scale war. Attacks on commercial shipping in the Strait of Hormuz—through which a significant portion of global oil transit passes—raise the specter of a global energy crisis, while strikes on U.S. allies in the Gulf signal a widening theater of operations. The diplomatic breakdown leaves no immediate off-ramp, increasing the risk of miscalculation.

Watch For

Iran's statement that it holds no commitments under the defunct MoU, particularly regarding the Strait of Hormuz, could lead to further disruption of shipping. Monitor for additional tanker attacks or U.S. retaliatory strikes, responses from Gulf Cooperation Council states, and any emergency sessions at the UN Security Council or International Maritime Organization. Trump's pivot to trade deals with Gulf states as an alternative to a Hormuz levy may shift economic pressure dynamics.