US and Iran Exchange Strikes as Hormuz Peace Hopes Collapse

Tensions between the United States and Iran intensified today after both sides carried out fresh strikes, raising fears that hopes for a ceasefire and possible peace deal are fading.

Iran’s Revolutionary Guard targeted a US airbase in response to earlier American military strikes on an Iranian drone operation near the Strait of Hormuz. A US official told that US forces shot down four Iranian drones and struck a ground control station in Bandar Abbas that was preparing to launch another drone.

The US side described its action as defensive and aimed at protecting the fragile ceasefire that began in early April. However, Iran said the attacks were a direct response to US military action near its territory.

Strait of Hormuz Becomes Key Flashpoint

The Strait of Hormuz, one of the world’s most important oil routes, remains at the center of the conflict. Iran accused the US of escalating tensions, while Washington said its operations were necessary to maintain security in international waters.

The US Treasury also added Iran’s Persian Gulf Strait Authority to its sanctions list, accusing it of threatening US national security.

Reports of earlier draft agreements suggesting a return to normal shipping through the strait were dismissed by the White House, with President Donald Trump rejecting claims that a deal was close. Trump also said no single country would control the waterway and warned that even regional partners like Oman would face consequences if they attempted to restrict access.

Markets React as Oil Rises and Talks Stall

The renewed fighting has shaken global markets, pushing oil prices higher after earlier declines. US crude futures rose more than 3%, while stocks and the dollar moved in different directions amid uncertainty.

The conflict, which began in February 2026, has already reduced shipping traffic through the Strait of Hormuz by 88%, disrupting a route that once handled a fifth of global oil and LNG flows.

Iran continues to demand the release of frozen assets and relief from sanctions, while the US maintains that Iran must not be allowed to develop nuclear weapons. Talks remain stalled, with both sides far from agreement.