Ceasefire Collapses as United States and Iran Trade Strikes Across the Gulf

by | Jul 9, 2026 | News

gray warship on body of water

The fragile truce between the United States and Iran has unraveled, giving way to a rapid escalation that has reached across the Persian Gulf and drawn several neighboring countries into the line of fire.

American forces struck Iran for a second consecutive night this week, with Central Command announcing roughly 90 targets hit, including air defense systems, coastal surveillance installations, and missile and drone storage sites. Explosions were reported in cities along the Strait of Hormuz, among them Bushehr, Bandar Abbas, Chabahar, and Sirik. Iranian health authorities said 14 people were killed and 78 wounded over the two days of attacks.

The trigger was the strait itself. Under a memorandum of understanding signed in June, the United States agreed to lift its naval blockade and temporarily waive oil sanctions in exchange for Iran reopening the waterway. Washington says Tehran instead sought to assert control over the passage, threatening and striking commercial vessels. Three ships were attacked in early July, including a Qatari gas tanker that caught fire and a Saudi flagged crude carrier. The Treasury Department subsequently revoked the oil sanctions waiver, and President Donald Trump declared the ceasefire over.

Iran responded in kind. Its Revolutionary Guards said they struck American bases and strategic sites in Bahrain, Kuwait, and Qatar, and fired ballistic missiles toward a military base in Jordan, most of which Jordanian forces reported intercepting without casualties. Iranian officials called the American strikes a violation of the memorandum and warned against further military adventurism, while its chief negotiator accused Washington of breaching the agreement first.

The stakes extend well beyond the two adversaries. Roughly a fifth of the world’s oil passes through the Strait of Hormuz, and commercial traffic has already collapsed since the conflict began in late February. Oil prices climbed and global markets fell after Trump’s announcement.

Israel is watching closely. Defense Minister Israel Katz said this week that the military stands ready to resume its campaign and, if necessary, to strike independently a third time. Prime Minister Benjamin Netanyahu announced a defense budget increase of some 350 billion shekels over the coming decade.

Trump has said Iran approached Washington seeking a new deal, though he questioned whether it deserved one. For now, the strikes continue, and the region waits.

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