The US launched strikes on Iran early Wednesday, hours after it revoked a licence authorising the sale of Iranian oil in retaliation for what it said were Tehran’s attacks on ships in the Strait of Hormuz.
Iran hit back with strikes on Bahrain and Kuwait.
US President Donald Trump said later that the interim agreement with Iran was “over” but he would allow talks to continue.
That raised concerns that the wider conflict in the Middle East could resume — and oil prices shot up.
“For me, I think it’s over,” Mr Trump responded when asked about the status of ceasefire.
He added that US representatives can continue negotiations but he cast doubt on the outcome.
“They can talk, but I think they’re wasting their time,” he said.
The attacks on shipping threatened efforts to resume fuel shipments in the strait that are crucial to the global economy.
The crossfire came during the days-long funeral for Iran’s late supreme leader Ayatollah Ali Khamenei, who was killed on February 28 in the war’s first moments.
The funeral, which ends Thursday, was supposed to be a period of lower tensions — though mourners have repeatedly called for the killings of Mr Trump and Israeli Prime Minister Benjamin Netanyahu.
Negotiations to reach a final deal had been due to start after Mr Khamenei’s burial and focus on the toughest matters, including fully reopening the strait and rolling back Tehran’s disputed nuclear programme.
But the new attacks threw that into question.
“The era of bullying and extortion is over,” Iran’s parliament speaker Mohammad Bagher Qalibaf wrote on X. “It leads nowhere. We don’t fold.”
https://x.com/CENTCOM/status/2074603238175998290?ref_src=twsrc%5Etfw
The US military’s Central Command said American forces launched the strikes “to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway”.
It said it hit Iranian targets including air defence systems, radars and over 60 small boats used by Iran’s paramilitary Revolutionary Guard.
Those boats have been key in harassing ships in the strait.
The US military remains “postured and prepared to hold Iran accountable when the agreement is not adhered to or obeyed”, it added, saying this round of attacks had ended.
Iran acknowledged the strikes, but offered no word on any losses.
Iranian state media reported the sound of explosions in Bandar Abbas, Qeshm and Sirik.
On Wednesday morning, both Bahrain, home to the US Navy’s 5th Fleet, and Kuwait, home to US Army forces, sounded missile alerts.
The Guard issued a statement acknowledging targeting US military installations in both countries.
“The child-killing and terrorist US army… openly violated the ceasefire and violated the Islamabad understanding by launching an airstrike on a number of coastal bases and civilian stations on the coasts of Hormozgan and Mahshahr provinces”, it said, without addressing the attacks on ships in the strait.
Bahrain sounded its alert sirens a second and third time later on Wednesday morning.
A similar spate of Iranian attacks on shipping and US retaliatory strikes occurred late last month — which similarly drew Iranian attacks on Bahrain and Kuwait.
Wednesday’s strikes also came as Mr Trump was in Turkey for a summit of the Nato military alliance.
Anwar Gargash, a senior diplomat in the United Arab Emirates, called Iran’s attacks on Wednesday on Bahrain and Kuwait “a clear indicator that Tehran remains incapable of committing to the requirements of de-escalation and turning the page on war”.
“The Gulf Arab states cannot remain a target for Iran’s wavering between the logic of escalation and the path of rationality, stability and peace,” he wrote.
The US also revoked a licence that authorised the sale of Iranian oil as part of the interim deal.
That had allowed Iran for the first time in years to conduct oil sales openly on the international market for US dollars.
Iran long had been suspected of selling sanctioned crude oil at below-market prices to China.
The decision came after the strikes on shipping.
One tanker was travelling off the coast of Oman when it was hit and caught fire, the United Kingdom Maritime Trade Operations centre said.
Iranian state television said the liquefied natural gas tanker came under attack after ignoring warnings but did not directly claim the assault.
The other two ships sustained some damage, but no one was injured, and both continued on their way in the Strait of Hormuz, the UK maritime agency said.
Iran has maintained a chokehold on the Strait of Hormuz since the war, disrupting global energy markets as a fifth of all traded oil and natural gas passed through the channel in peacetime.
The ships attacked on Tuesday all appeared to be using a route close to Oman’s shore, rather than one ordered by Tehran.
Tehran repeatedly has declared that only its approved route through the strait is safe and is suspected of attacking other ships that have used the Oman route.
Majed al-Ansari, a spokesman for the Qatari Foreign Ministry, said the Qatari tanker Al Rekayyat was targeted in an “unacceptable attack” on international navigation and global energy security.
He said Qatar, which has been a key mediator alongside Pakistan in the talks, holds Iran “fully legally responsible”.
Iran and the US agreed as part of the interim deal to allow ships to pass without paying charges for 60 days.
But Tehran insisted it must control the vessels’ routes and later charge fees for passage, which would upend decades of practice in the waterway.
The US and many Gulf Arab states say they will not agree to Iran charging for passage through the strait.
Funeral ceremonies for Mr Khamenei began Wednesday in the Iraqi city of Najaf.
Attending the services are Iranian President Masoud Pezeshkian and other Iranian as well as Iraqi officials including Prime Minister Ali Falah al-Zaidi.
There will be funeral prayers later at the Imam Hussein shrine in Karbala as well.
Mr Khamenei’s son, Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei, has yet to make an appearance at the ceremonies, which began on Saturday in Tehran.
He is believed to be in hiding after reportedly being wounded in the airstrike that killed his father.
Mr Khamenei will then be returned to Iran to be buried on Thursday at the Imam Reza shrine in Mashhad, his birthplace.