Full story
Blockade returns, fee dropped
The United States reimposed its naval blockade of Iran on Tuesday as President Donald Trump abandoned plans to impose a 20% transit fee on vessels using the Strait of Hormuz, withdrawing the proposal hours before the blockade was due to take effect.
Trump said on his Truth Social platform, "I have decided to replace the 20% United States reimbursement fee with trade and investment deals that the various Gulf states will be making into the United States," while also maintaining that the Strait of Hormuz would remain open to international shipping and that a "full blockade" would apply only to vessels travelling to or from Iranian ports or carrying Iranian cargo.
As the renewed confrontation intensified, the US military carried out its third consecutive night of strikes on targets inside Iran, with US Central Command saying the attacks targeted facilities in Bushehr and Bandar Abbas as well as other locations linked to Iran's military capabilities.
Iran responded with missile and drone strikes against American military assets in neighbouring countries, while commercial shipping came under renewed attack in the Hormuz.
The UAE said two Emirati oil tankers, Mombasa and Al Bahiyah, were struck by Iranian cruise missiles while transiting the southern shipping lane of the Strait of Hormuz within Omani territorial waters, and the UAE Ministry of Defence said one Indian crew member was killed and eight others were wounded.
CENTCOM: civilians targeted
US Central Command said Iran intentionally attacked seven commercial ships over the past seven days, a claim made by Admiral Brad Cooper as he said it resulted in "nearly a dozen" civilian crew members being killed, injured or going missing.
Cooper also said, "Iranian forces have also launched dozens of missiles and drones toward neighboring Gulf countries," while the Times of Israel reported the US military was holding Iran accountable for unwarranted aggression.
In a separate account of the same escalation, Fox News quoted Trump telling Iranian officials, "You better make a deal. You're not going to have anybody left," as American strikes against Tehran continued to intensify.
Trump said U.S. forces were being "very careful with the civilian population" but warned that Tehran must return to the negotiating table, and he said Iran’s military has been "degraded to a very low level" after repeated U.S. strikes.
The dispute also played out in the airspace and at sea, with Jordan saying its armed forces intercepted and destroyed four Iranian missiles that entered its airspace and Bahrain announcing its air defence systems had successfully intercepted Iranian aerial attacks over the kingdom.
MoU collapses, sanctions expand
Iran’s Foreign Ministry said Tehran no longer considered itself obligated to fulfill parts of the memorandum of understanding with the United States, with spokesman Esmaeil Baghaei saying the agreement had entered a "crisis phase".
Baghaei argued the deal was based on "commitment for commitment," adding that "As long as America does not act on its promises, no expectations should be held from Iran either," as the US resumed military strikes and reinstated a naval blockade of Iranian ports.
Hours after the blockade resumed, the US Treasury’s Office of Foreign Assets Control imposed new sanctions targeting more than 50 individuals, companies and vessels linked to Mohammad Hossein Shamkhani, describing the network as a major force behind Iran’s oil exports and global shipping operations.
Treasury Secretary Scott Bessent said the Treasury Department was "shutting down the financial infrastructure that allows the regime to continue its threats to U.S. national security and global shipping," while the ABC News live updates said the deputy foreign minister confirmed Tehran considered the MoU effectively "dismantled" due to the latest violence.
The sanctions and blockade were framed as part of a broader pressure campaign as the US Treasury said it had sanctioned more than 200 individuals, entities, and vessels operating under Shamkhani, and CENTCOM said American forces remained vigilant, lethal, and ready.
