By Elsie Kamsiyochi
The fragile diplomatic effort to end the months-long conflict between the United States and Iran appeared to unravel on Wednesday after U.S. President Donald Trump declared that the interim peace agreement between the two countries was effectively finished. His remarks came as Iran launched attacks targeting U.S. military facilities in Bahrain and Kuwait, prompting Washington to prepare another wave of military strikes against Iranian positions.
Speaking ahead of a NATO summit in Ankara, Turkey, Trump said he no longer believed negotiations with Tehran could produce a lasting settlement. He argued that Iran had repeatedly violated commitments made under the temporary agreement and questioned whether any future deal could be trusted.
Trump told reporters that, in his view, the interim accord was over and suggested he had little interest in continuing direct engagement with Iranian leaders. While he stopped short of officially ending diplomatic efforts, his comments represented the strongest indication yet that Washington may be shifting back toward a military-focused strategy rather than negotiations.
Later in the day, the U.S. president warned that American forces were preparing additional strikes against Iran. He said the United States would respond forcefully to Tehran’s latest actions, adding that new attacks could begin before the end of the night.
The latest escalation follows a series of Iranian strikes against U.S. military sites in Bahrain and Kuwait. Iran’s Islamic Revolutionary Guard Corps (IRGC) said the attacks were retaliation for American military operations carried out earlier against Iranian targets. Tehran also claimed its forces had shot down a U.S. MQ-9 Reaper drone that it said was attempting to monitor or interfere with the operation.
Bahrain’s military later announced that its air defense systems had successfully intercepted and defeated the Iranian attack, preventing significant damage. There were no immediate reports of major casualties from either Bahrain or Kuwait.
The United States had launched fresh strikes after accusing Iran of being responsible for attacks on commercial oil tankers operating in the Strait of Hormuz, one of the world’s most strategically important shipping lanes. U.S. Central Command said its latest operation targeted more than 60 small boats operated by the Revolutionary Guards, along with military infrastructure used to threaten international shipping.
Trump later confirmed that American forces had destroyed dozens of Iranian vessels and also struck facilities on Kharg Island, Iran’s largest oil export terminal. He warned that further attacks on the island remained possible if Iran continued military operations in the Gulf.
Alongside the military response, Washington intensified economic pressure by revoking a special license that had temporarily allowed Iran to continue exporting crude oil and petroleum products under the June ceasefire framework. The U.S. Treasury ordered companies to wind down those transactions by July 17, a move that Iran immediately condemned as a violation of previous agreements.
The renewed fighting has once again placed the Strait of Hormuz at the center of global attention. The narrow waterway carries a significant share of the world’s seaborne oil exports, making any disruption a major concern for energy markets.
Shipping companies reacted quickly to the deteriorating security situation. Tracking data showed that several oil and gas tankers turned away from the Strait rather than risk sailing through the increasingly dangerous route following the latest attacks.
Financial markets also responded sharply. Brent crude oil prices climbed more than 5%, marking one of their biggest single-day gains in weeks as traders worried that prolonged conflict could disrupt global energy supplies. Rising oil prices also renewed fears of higher inflation, while stock markets fell as investors sought safer assets.
Although current oil prices remain below the peaks reached during the height of the war earlier this year, analysts warned that any sustained disruption to exports through the Strait of Hormuz could trigger another sharp increase in energy costs worldwide.
Iran strongly rejected U.S. accusations and insisted that Washington had violated the ceasefire first. Senior Iranian officials described the latest American strikes as acts of aggression and vowed that the country would defend its sovereignty.
Iranian military commanders warned that they would not allow the United States to interfere with security in the Strait of Hormuz, a waterway that has become one of Tehran’s strongest strategic bargaining tools. Parliamentary Speaker Mohammad Baqer Qalibaf also accused Washington of breaking the ceasefire agreement, saying Iran would not bow to pressure or intimidation.
Iranian state media reported explosions near several strategic locations, including Kharg Island, Qeshm Island, Bandar Abbas, and Sirik, though U.S. officials said their operations primarily targeted Iranian air defense systems, coastal surveillance facilities, anti-ship missile sites, drone launch positions, and other military assets. American officials said no civilian casualties had been reported.
The latest exchange of attacks has dealt another blow to hopes that the memorandum of understanding signed in June could evolve into a comprehensive peace agreement ending the conflict that began after U.S.-Israeli airstrikes on Iran in February.
International leaders expressed growing concern over the renewed violence. NATO Secretary General Mark Rutte described the U.S. military response as necessary, while European Union foreign policy chief Kaja Kallas condemned Iran’s attacks on Bahrain and Kuwait and warned that both sides were making diplomatic efforts far more difficult.
With military operations intensifying, diplomatic relations deteriorating, and economic pressure mounting, fears are growing that the conflict could once again expand beyond Iran and the United States, threatening stability across the wider Middle East and placing global energy markets under renewed strain.
Source Reuters
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