Trump threatens trade with Iran after memorandum collapses
After fighting resumed this week, President Trump issued harsh threats to Iran, and Iranian leaders accused the US of violating the deal.
The United States launched a new military offensive against Iran on July 12, marking another escalation in the breakdown in diplomatic relations between the two countries, after Iran targeted U.S. facilities across the Persian Gulf and declared it once again closed the Strait of Hormuz.
U.S. Central Command announced that it launched strikes against Iran at 5pm ET on July 12 to “continue to reduce its ability to attack civilian sailors and commercial vessels that freely pass through the Strait of Hormuz.” Central Command added that President Donald Trump “ordered the attack to hold Iranian forces accountable.”
The latest deal has intensified the fight for control of the Strait of Hormuz, a key energy corridor that carried one-fifth of the world’s oil and liquefied natural gas traffic before the war. Iran announced it had closed the waterway again, but U.S. officials insisted it remained open.
Days after saying he believed the ceasefire was over, President Trump said in a brief interview with Reuters: “We’re beating the crap out of them,” referring to the weekend’s attacks.
The resumption of fighting has called into question the interim agreement between the United States and Iran signed last month that aims to reopen the strait and provide a framework to end the war through an additional 60 days of negotiations. If anything, the latest deals raise concerns about broader regional conflict and further disruption to global markets.
Gulf countries caught in the middle
Iran expanded its military operations beyond previous targets, launching attacks that reached as far as Qatar and prompted an air defense response in the United Arab Emirates.
Qatar, which has played a central role in mediation efforts between the US and Iranian governments, said three people, including a child, were injured by falling debris. Gulf states accused Iran of taking “full legal responsibility” for the attack and noted that it could further complicate diplomatic efforts.
Officials in the region reported additional incidents. Bahrain said it had intercepted several air strikes, Jordan reported missile attacks and Oman said it had been targeted by drones. Kuwait later reported damage from the strike, saying one worker was injured in an attack on an oil drilling platform.
Oman also summoned the Iranian ambassador to protest drone attacks in two regions of the country. The U.S. Embassy in Oman advised U.S. nationals in the affected areas to evacuate to designated locations due to the deteriorating security situation.
In a statement, Iran’s Foreign Ministry condemned the US’s “aggressive” military action and said talks between Iranian and Omani officials on July 11 were unsuccessful due to US “overt and covert” pressure on Oman.
U.S. military officials announced on July 11 that the U.S. military had struck 140 military targets in Iran, with more than 300 hit over three nights this week.
Oil prices rise as concerns about disruption grow
The escalating conflict has caused oil prices to soar, threatening energy transport through the Strait of Hormuz. Brent crude oil, the international benchmark, rose more than 3% overnight on July 12, and U.S. crude oil also rose about 3%.
President Trump said on July 12 that the strait was open to commercial traffic, but Iran earlier announced it had closed the main waterway after a ship was struck after navigating an unauthorized route.
Six ships passed through the strait in July, the lowest number in five weeks, Reuters reported, citing ship tracking data from Kpler.
Contributed by: Reuters
