Renewed military action is putting a fragile ceasefire at risk and driving oil prices higher.
The United States and Iran carried out a new round of air and missile attacks on Thursday, marking a second straight day of escalating conflict. U.S. President Donald Trump warned that further strikes could follow unless Tehran quickly agrees to a peace deal.
The latest developments have raised concerns that the ceasefire reached in April may be close to collapsing.
KEY DETAILS
The recent escalation began after Iran shot down a U.S. Apache helicopter near the Strait of Hormuz earlier this week. Since then, both sides have exchanged attacks across the region.
The U.S. military said it targeted Iranian surveillance systems, communication networks, and air defense sites. Washington described the operation as a response to Iran's continued aggression.
Iran's Revolutionary Guard said it launched attacks against 18 U.S. military targets, including facilities in Kuwait and Bahrain, as well as the U.S. Navy's Fifth Fleet. Iran also reported firing 12 ballistic missiles at the al-Azraq air base in Jordan for a second consecutive night.
Kuwait and Bahrain activated air defenses during the attacks. Kuwait temporarily closed its airspace before reopening it later on Thursday.
Iran claimed the Strait of Hormuz was fully closed and warned ships against entering the waterway. U.S. Central Command rejected those claims, saying commercial traffic continued and no U.S. vessels had been hit.
MARKET REACTION
Oil prices jumped nearly $3 after Trump's warning of possible further military action and extended gains during Asian trading hours. The conflict continues to threaten global energy supplies, with around 20% of the world's crude oil and LNG shipments affected by disruptions in the region.
Traders are now watching for signs of either renewed diplomacy or further military escalation. The next moves from Washington and Tehran, along with developments around the Strait of Hormuz, are likely to remain key drivers for global markets.
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