US and Iran Exchange Strikes Across Gulf; Status of Strait of Hormuz Disputed

The United States and Iran have engaged in a significant escalation of hostilities, exchanging heavy missile and drone strikes across the Persian Gulf. Iran on Sunday claimed it had closed the critical Strait of Hormuz, a declaration immediately disputed by the U.S. military, as attacks spread to regional states previously untouched by the recent conflict.

Escalation in Hostilities

The latest barrage marks a notable expansion in the conflict's scope and intensity. According to reports, Iranian strikes targeted U.S. facilities in Qatar and the United Arab Emirates, two nations that had not been attacked since April and early May, respectively. Iran's Islamic Revolutionary Guard Corps also claimed to have hit targets in Jordan, Kuwait, and Oman.

In response, U.S. Central Command (CENTCOM) stated that its forces had struck more than 300 Iranian military targets over the last three nights, including 140 on Saturday alone. The stated goal of the operation is "to degrade Iran’s ability to attack civilian mariners and commercial vessels."

Regional partners reported intercepting multiple attacks. The UAE said it engaged missiles and drones from Iran, while Bahrain, Jordan, and Oman also reported aerial threats. Qatar, a key mediator in past talks, said three people were injured by falling shrapnel and held Iran "fully legally responsible" for the attack.

Strait of Hormuz in Dispute

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The operational status of the Strait of Hormuz, a chokepoint for roughly one-fifth of the world’s oil and LNG supply before the conflict, is a central point of contention. Iran's newly formed Persian Gulf Strait Authority announced that passage was "not currently possible" due to U.S. military movements.

However, U.S. Central Command rejected this claim, stating, "Iran does not control the strait. Traffic is flowing." The U.S. Navy-led Joint Maritime Information Center advised that an "expanded" southern route near Oman remained available for transit despite a severe security threat. The dispute follows Iranian attacks on at least two commercial vessels, including the container ship GFS Galaxy, after which an Indian national was reported missing.

Diplomatic Breakdown and Market Impact

The renewed violence casts serious doubt on an interim U.S.-Iranian agreement signed last month, which aimed to de-escalate the conflict. In the past week, U.S. President Donald Trump said he considers the ceasefire to be over.

The ongoing instability in the Gulf and Iran's effective blockade of the strait have already driven energy prices higher, contributing to global inflationary pressures. This is a politically sensitive issue in the U.S. ahead of congressional elections. Underscoring the diplomatic impasse, Iran’s top negotiator, Mohammad Baqer Qalibaf, posted on X: "The era of one-sided deals is OVER. We told you: keep your word or pay the price."