Oil and Gas

A deal between the US and Iran could be signed within 48 hours, according to US officials. The agreement would reportedly focus on reopening the Strait of Hormuz and could mark a first step towards broader negotiations.

Al Jazeera’s Marah Ryan has the latest.

United States President Donald Trump has lambasted the nation’s biggest oil and gas giants as Houston, Texas-based Chevron reported record earnings while consumers struggle with soaring petrol prices.

“I don’t like it,” Trump told reporters on Monday in reference to the blockbuster second-quarter earnings, as his war on Iran has kept oil prices high for months.

“Chevron, too much money. ExxonMobil, too much. Too much money.”

Trump’s comments came on the heels of an interview Chevron CEO Mike Wirth gave on the Fox News programme Sunday Morning Futures with Maria Bartiromo. Writing on his Truth Social platform, the US president berated Wirth for not crediting his administration’s efforts to help the oil industry.

“The only thing he [Wirth] conveniently forgot to mention is that, without the genius, foresight, strength, and stability of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD!”

Chevron reported its highest quarterly profits in six years on Friday. Adjusted earnings per share came to $6.06, or $12bn, as tensions between the US and Iran strained global oil supply chains in the strategically vital Strait of Hormuz, where roughly one-fifth of the world’s energy supply travelled through before the war, sending prices soaring.

Chevron rewarded its employees. Wirth praised them for their work and said in an email that most workers would receive a bonus equivalent to half their monthly base pay, the Reuters news agency reported, citing an internal email.

Al Jazeera has not been able to independently confirm Reuters’ reporting.

Chevron’s strong earnings come as the company is less reliant on Middle Eastern production operations than its competitors, allowing it to reap the benefits of higher global oil prices during the quarter. Brent crude, the global benchmark for oil prices, was 23 percent higher than in the first three months of the year.

“Being less dependent on the Strait of Hormuz is definitely helping them. It’s also the refining they’re able to do here. The fact that Chevron has less than 5 percent exposure there gives it some protection,” Bill Drolet, executive director, mergers & acquisitions at The Post Oak Group investment bank, told Al Jazeera.

“More than 70 percent of Chevron’s production is concentrated in America, and that’s where it’s making its biggest margins right now.”

Chevron also benefitted from the president’s move to open up oil production in Venezuela after US special forces abducted the country’s president, Nicolas Maduro, in January. Chevron had stayed on in the South American nation even after former President Hugo Chavez nationalised oil production.

Chevron did not respond to Al Jazeera’s request for comment.

Competitors also performed well. ExxonMobil on Friday posted its best quarterly profits in four years, but they fell short of analysts’ expectations. Earnings raked in $9.2bn.

Exxon did not respond to a request for comment.

On Thursday, Valero Energy reported its highest ever second-quarter profit, with net income coming in at $3.7bn as US refiners reap the benefits of tensions choking oil production across the Middle East.

But those benefits have not reached consumers, who are feeling the strain at the petrol pump. Petrol prices are above $4 a gallon (3.78 litres) across the US. The average price for a gallon of petrol is $4.09, down from $4.11 this time last week, but up from $3.82 a month ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.

By comparison, when the US and Israel first struck Iran in late February, the average price was $2.98.

An analysis from Bank of America published in April showed consumers spending as much as 4.2 percent of their income on petrol in March, up from 3.9 percent in 2019. Lower-income earners are hit much harder, with more than 10 percent of households spending more than 10 percent of their monthly income on petrol.

This comes as pressure on the US Strategic Petroleum Reserve continues. The reserves hit their lowest level since 1983 this week, according to the Department of Energy. They fell by 2.8 million barrels over the week to 304.8 million barrels.

Political pushback

The condemnation of the oil industry has come from across the political spectrum.

“A decent industry would say, ‘this was money we didn’t earn, it’s a windfall we get from our cartel pricing scheme.’ Not these corrupt, greedy and grasping rogues,” Democratic Senator Sheldon Whitehouse of Rhode Island wrote in a post on X on Sunday.

But lowering prices might not be as easy. Beyond pressure from consumers, companies across the corporate United States are beholden to a concept called shareholder supremacy. This means that while lowering prices might be in the best interest of pinched consumers, it may not be possible given the legal framework and companies’ fiduciary responsibility to shareholders.

“They’ve [oil companies] got shareholders they’re responsible for. They could reduce share buybacks or dividend payouts, but right now, I don’t see oil companies doing much,” Post Oak Group’s Drolet said.

He said if he were advising a member of Congress or the president, providing relief to consumers might be easiest by suspending the so-called gas tax, which varies by state. In Texas, for example, the gas tax accounts for 20 cents per gallon, while in California, it is 63 cents per gallon.

“From a political standpoint, the best thing our government can do is suspend gas taxes, especially in California. If they put a temporary hold on taxes, that would help everybody get through this challenging time.”

Al Jazeera asked the White House if that policy is on the table, but the press office did not respond.

Heading into the US midterm elections, cost of living remains among the highest concerns for consumers. In a Washington Post/Ipsos poll last month, 54 percent of respondents said that high prices and the economy were a chief concern heading into November.

“They see the price of fuel and net profit for Exxon and Chevron and feel that they are abusing US consumers, especially as US consumers have access to the correct fuel, whereas other areas around the world have shortages [such as Germany, Philippines],” Babak Hafezi, professor of international business at American University, told Al Jazeera.

“The reality is that as the war [On Iran] progresses, the impacts of the lack of supply will create full price and supply shocks.”

Amid Trump’s comments, Chevron’s stock is on the downturn in midday trading, tumbling more than 2 percent from the market open. However, it is up more than 1.1 percent over the last five days.

ExxonMobil is down 0.5 percent for the day and 0.1 percent over the last five days.

Russia claimed this week to be advancing into Ukraine’s regions of Sumy, Kharkiv and Donetsk, as Ukraine installed new political leadership in its defence ministry and a new military leadership in its armed forces.

The changes followed the unprecedented firing of both defence minister Mykhailo Fedorov and commander-in-chief Oleksandr Syrskii within a week.

Most concerning was the news from Ukrainian soldiers in the eastern region of Donetsk that Russia was “effectively cutting off” Kostiantynivka, the southernmost of four “fortress cities” Russia had pledged to overthrow in a bid to capture the remaining free territory of the region by the end of the year.

Kostiantynivka was “the key to liberating the entire territory of the Donetsk People’s Republic”, Russian President Vladimir Putin recently said.

“Things are very bad in Kostiantynivka. It’s not a question of whether we’ll lose [it] or not – we’ve effectively already lost it,” a soldier told the Ukrainian news outlet Hromadske. “If there’s a large number of Russians there, you can’t really say we’re holding it. They’re just pushing our guys into a corner.”

A local Ukrainian commander told Hromadske that Russians were moving into the villages of Molocharka and Izhevka north of the city, and his units could find themselves surrounded in “another month or two” unless reinforcements arrived or containment tactics changed.

Shortly before he was dismissed on July 21, Syrskii had painted a more optimistic picture, saying there were an estimated 145 Russian infiltrators in the city who were suffering “significant losses” of about 25 people a day, as Ukrainian drone units hunted them down in their urban shelters.

The commander of a group called Kurt and Company shared that more optimistic view with the news outlet Suspilne.

“Heavy fighting and gunfire are going on all over the city,” said the commander, identified by the call sign Kurt. “But we still control most of the city and the enemy is mainly on the flanks. They are trying to bypass us, cut us off, but we are holding our defence there. We are just constantly under attack from the KABs – they are just taking out positions with aerial bombs. This is the only thing that still gives the Russians success and this is a big problem for us.”

KABs are massive aerial ordnance with payloads of between 500kg and 3,000kg, which Russia has been dropping on Ukrainian positions at a rate of more than 200 and sometimes more than 300 a day. Ukraine has repeatedly placed aerial defence equipment at the top of its list of requirements from allies.

As recently as three weeks ago, the Institute for the Study of War, a Washington-based think tank, estimated that Russian forces had a presence in just 37 percent of Kostiantynivka, mostly in the form of “infiltrations” rather than firm control. Its most recent assessment of Russian infiltration suggests that it has spread to most of the city, however.

Overall, Russian forces have been slowing down, though. The ISW estimated that they were capturing 16.6sq km a day in the first half of 2025, but just 1km a day in June this year. In July, the ISW has assessed that Russia has been losing territory at a rate of 1.6sq km a day.

Now, it appears that Russia has been mounting an effort to regain the offensive. The commander of Ukraine’s Unmanned Systems Forces (SBS), Robert Brovdi, said “the actual number of enemy personnel involved in offensive operations along the front line” during the month had increased by 12 percent compared with June and 18 percent compared with May, based on analysis from the SBS intelligence centre. Russian casualties increased by similar proportions, he said.

In the northern Kharkiv and Sumy regions, Russia claimed to have destroyed 10 Ukrainian unmanned aerial vehicle (UAV) control centres on July 27, killing 70 personnel.

Three days later, it said its troops had routed defenders in Nova Sich, Mogritsa and Malaya Slobodka in Sumy and Yurchenkovo in Kharkiv, by copying the Ukrainian tactic of using drones to disrupt ammunition deliveries.

“Russian servicemen found large amounts of abandoned weapons, ammunition and military equipment,” according to a Russian report.

A local Russian official claimed Moscow had captured 13 settlements in Kharkiv this month.

Al Jazeera could not independently verify the Russian claims, which have in the past been inflated or premature, and Ukraine denied Nova Sich had fallen.

An autumn offensive?

Ukrainian President Volodymyr Zelenskyy said this week he had received intelligence that Russia was preparing an “expanded mobilisation” to counter losses of 225,000 this year, versus recruitment of 221,000 people. Six out of 10 casualties were fatalities, he said.

Zelenskyy told Sky News Putin aimed to raise 300,000 to 500,000 troops in early October, after Russian parliamentary elections had taken place in September. “He will not be able to quickly prepare these people. This, again, means that he will send poorly trained people to the battlefield, which will inevitably lead to heavy losses,” Zelenskyy said.

More worrying, perhaps, were the 30,000 North Korean troops Russia was preparing barracks for in Voronezh, in southwestern Russia, according to Zelenskyy. Russia received 3,000 North Korean soldiers in 2024, and used them to reclaim territory Ukraine had counterinvaded in Kursk.

Fedorov announced a plan in June to attract foreign fighters by raising the salary for a front-line soldier to $7,000 a month. “I believe that 50 percent of the front line or among the attack aircraft could be foreigners,” he told Ukrainska Pravda this week.

Russia estimates that Ukraine currently employs about 4,000 foreign troops. Ukraine’s armed forces are estimated at 900,000 people.

Long-range strikes

Ukraine struck blows in its economic war against Russia, hitting refineries and oil depots.

Those included confirmed hits against the Subkhankulovo oil tank farm in Bashkortostan, 1,350km from Ukraine, six refineries, an oil loading terminal at Rostov-on-Don, and fuel and lubricant depots at Ishki in occupied Crimea and Udmurtia.

Ukraine has recently struck targets as far afield as 2,500km, and Zelenskyy said it had now acquired range of at least 3,000km.

Ukraine claims to have disabled 42 percent of Russian refining capacity this year. A Financial Times investigation using satellite photographs confirmed that it had disabled 45 percent of nominal capacity and 30 percent of actual capacity, causing damage lasting weeks or months.

Russia, which has been experiencing a fuel crisis as a result, extended a fuel export ban from the end of August to the end of January.

Ukraine also struck military production targets, including the Avitek plant in Kirov city, producing components for aviation and missiles, and an S-400 radar. On July 27, it downed a Forpost-R heavy drone used to carry KABs – only the sixth such prize of the entire war.

Brovdi’s forces continued to starve Crimea of electricity and fuel, striking 37 electricity substations and four oil tankers during the week, bringing the total number of electricity infrastructure nodes struck in July to 164, and the total number of tankers hit in the Black and Azov seas to 205.

Brovdi’s forces focused much of their fire on the warehouses of the Wildberries online retailer, suspected by Ukraine of providing equipment to mobilising troops.

During the past week they have struck warehouses in Voronezh, Leningrad, Simferopol, Udmurtia and Penza, bringing the total number of warehouses set ablaze to 12 and the estimated damage to $2.2bn.

Russia also claims to have hit military targets in massive drone and missile attacks on Ukraine, but many of the hits were civilian.

One person died when a supermarket in Chernihiv, northern Ukraine, was struck on July 26, and the entire Voronov family was wiped out in Radushne in central Ukraine when their house was blown to smithereens on July 30. A record 56,000 people spent the night sheltering in the Kyiv Metro that night.

A sweeping package of new Russian sanctions has cleared its first hurdle in the United States Congress, and, if passed, could trigger huge tariffs for countries such as India and China which continue to buy oil from Moscow.

The bill, which was advanced in the US Senate this week, has been named for the late Lindsey Graham, whose funeral was attended by world leaders including Israeli Prime Minister Benjamin Netanyahu earlier in the week.

Here’s what we know:

What happened in the Senate?

The “Lindsey O Graham Sanctioning Russia Act of 2026” was advanced overwhelmingly by the Senate this week in a vote of 86 to 12, meaning it can now proceed to the House of Representatives for further deliberation.

Named for the late Senator Graham, a staunch Ukraine supporter who died unexpectedly this month, the bill moved forward with the support of Ukrainian President Volodymyr Zelenskyy, who was in Washington to attend Graham’s funeral and watched the proceedings from the gallery.

“It was an honour to be present as the votes were counted – 86 senators supported the bill,” he wrote on X afterwards. “This is the first step towards implementing Lindsey [Graham]’s plans, and certainly a step towards peace. It is important that this tool works.”

After clearing the Senate, there will be a delay before the bill can move forward to the House, which is now in summer recess.

On Wednesday this week, US President Donald Trump ordered lawmakers to amend the bill to include tariffs covering Iran as well. This will likely delay the bill further if it deters Democrats from supporting it, analysts said.

David Smith, an associate professor at the University of Sydney’s US Studies Centre, told Al Jazeera: “One of the things they’re worried about is how the tariff power in relation to Iran is going to be expanded. They’re going to be ok with tariff powers on Russia but they’re worried about tariff power on countries buying Iranian oil, which means China. I think there are going to be a lot of Democrats that are going to say these powers should be limited to sanctions and not tariffs.”

Without the Iran addition, he said he would have expected the bill to pass once the House resumes given strong Democratic support for Ukraine.

“Democrats have been genuinely worried about the Trump administration abandoning Ukraine. Something like this, which is ramping the pressure up on Russia so much, I just think there will be a large critical mass of Democrats who will vote for this,” he said.

What’s in the bill?

The bill makes use of sanctions and tariffs to target Russia and cut off the economic pipeline that has kept the Ukraine war going.

Major provisions include new sanctions on Russian President Vladimir Putin as well as on more than 20 top officials and companies which work with the Russian defence industry. It also targets Russia’s “shadow fleet” of oil tankers and the network it uses to evade international sanctions on its energy exports.

The bill gives the president authority to impose sanctions by invoking the International Emergency Economic Powers Act (IEEPA). Under it, he would be able to apply tariffs of up to 100 percent on exports to the US from the top five purchasers of Russian energy, military equipment or countries facilitating Russian sanctions evasion.

Tariffs of up to 500 percent can also be applied to Russian imports directly into the US. The US imported $3.8bn in goods from Russia in 2025.

Which countries are likely to be targeted?

China, India and Türkiye are potential targets of the bill, as they are among the largest buyers of Russian energy, according to data compiled by the Centre for Research on Energy and Clean Air (CREA).

China has historically responded to Trump’s tariffs with tariffs of its own on US exports. Even Pay, a director at the Beijing-based consultancy Trivium China, told Al Jazeera that the US may wait to impose tariffs as Trump is due to meet Chinese President Xi Jinping later this year.

Trump would still welcome the option, she said, after the Supreme Court struck down many of his tariffs in February.

“If passed and signed into law [which is still a big if at this point], the legislation would give Trump something he’s wanted for a while, namely, the legislature’s permission to impose high tariffs on China, alongside the small handful of other countries that import Russian oil,” Pay told Al Jazeera.

India is in a tricky position as its attempts to diversify away from Russian energy were disrupted by the shutdown of the Strait of Hormuz, according to Maia Nikoladze, a deputy director of the Economic Statecraft Initiative at the Atlantic Council.

Due to the disruptions, it has also applied for and received US sanction waivers to continue buying Russian oil in the interim, Nikoladze wrote in a report this week, and it is expected to do the same in the future.

“India will face a trade-off between maintaining energy security and managing the risk of US tariffs, potentially prompting it to again seek waivers and exemptions,” Nikoladze said.

What do critics say about the bill?

Critics like Senator Maggie Hassan say the bill gives Trump too much power to impose tariffs while also potentially harming both the US taxpayer and allied countries.

Turkiye, for example, buys Russian energy but it is also a US ally and NATO member, while “major non-NATO ally” Brazil and “major security cooperation partner” Singapore both buy Russian oil products, according to CREA.

In a post on X, Hassan wrote that while she supports sanctioning Russia, she does “not think tariffs, which are paid for by American businesses and consumers, will help Ukraine win”.

The bill is also opposed by lobby groups such as the US Chamber of Commerce, which also says the true cost will be passed on to US businesses and consumers, as with past tariffs.

While many of Trump’s tariffs have already been struck down by the Supreme Court, the Russia tariffs could have more staying power because they would be imposed on a stronger legal basis, according to Smith.

That’s because it is new legislation which has been crafted using the powers of the IEEPA.

“Previously what Trump has done is to go back to old pieces of legislation and invoke from those his power to use tariffs in ways they haven’t been used before and in ways courts have subsequently found less lawful, whereas this looks like new legislation that is going to lawfully expand his tariff authority,” he told Al Jazeera.

A spike in mortality

The tightening restrictions have forced the Cuban government to effectively ration care.

In February, Havana announced a package of emergency energy-saving measures. Among them was the suspension of all non-essential medical services across the island.

But non-essential does not mean unimportant. Fernandez, the paediatric anaesthesiologist, explained that preventive healthcare plays a major role in saving lives.

Under normal conditions, he said, preventive healthcare helps doctors catch potentially fatal conditions like appendicitis sooner.

But in recent months, Fernandez has observed patients arriving at his hospital in a “worsened” condition than they might otherwise have had.

“All the appendicitis cases we treat now present complications,” he said. “They demand more resources and antibiotics – supplies we don’t have.”

Deaths in Cuba have also escalated as years of increasing restrictions take effect.

Just last month, the Cuban Ministry of Public Health (MINSAP) reported that survival rates for childhood cancer dropped from 85 percent to 65 percent amid the oil blockade.

Infant mortality has also steadily climbed. In 2017, at the start of Trump’s first term, Cuba had an infant mortality rate of four for every 1,000 live births. That figure climbed to 7.7 in 2024, just before Trump’s second term, and reached 9.9 in 2025.

The maternal mortality rate similarly rose to 44.1 deaths for every 100,000 live births by the end of 2025, up from 40.6 the previous year.

Lilian Delgado, an obstetrician and gynaecologist at Cuba’s main maternity hospital, explained that the escalating humanitarian crisis has triggered a sharp rise in premature births and severe morbidity among pregnant women.

“Conditions are far from ideal at all the levels of the system,” Delgado noted. “There are shortages everywhere.”

The decision to prioritise emergency care can be deceptive. A wide range of medical procedures are considered “elective”. But just because they do not rise to the level of an emergency does not mean they are optional.

Typically, in Cuba, emergency surgeries are those that need to be urgently completed within 48 hours. Other necessary surgeries often fall into the “elective” category.

Mastectomies – a common breast cancer treatment – are among the surgeries often categorised as elective. So too are some organ transplants.

Healthcare advocates point out that, if certain elective surgeries are postponed too long, they too can result in deadly conditions.

More than 100,000 Cubans are currently on waiting lists for elective or reconstructive surgeries, a backlog MINSAP credited to the US sanctions.

Among those waiting are 5,152 cancer patients and approximately 12,000 children. Delgado said some of her patients have been languishing on such lists for months.

“Our surgical services are severely hampered by a lack of supplies,” she explained. “We have more women suffering from serious complications, and our operating rooms have become tied up with emergency cases, making it impossible to perform elective surgeries.”

Hospitals in Cuba largely have backup generators to weather the increasingly frequent power outages. But accessing even emergency medical care is tough when the fuel blockade is affecting basic services like transportation.

“Ultimately, if you have a cancer patient and cannot operate due to a number of factors – such as a nationwide blackout forcing the suspension of surgeries – then, whether you intend to or not, you are directly condemning that patient to death,” Delgado said.

The oil embargo has cost “human lives, both directly and indirectly”, she added.

The United States Federal Reserve is set to hold interest rates steady as inflationary pressures mount, driven by heightened fuel prices as tensions between the US and Iran continue.

The central bank said on Wednesday that it will maintain rates at 350-375 basis points during the second monetary policy decision under new Chairman Kevin Warsh.

“Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability,” the central bank said in a statement upon the release of its decision.

CME FedWatch, which tracks the likelihood of monetary policy decisions, forecast a 66.3 percent chance of maintaining rates, while there was a 33.7 percent chance that rates would increase to 375-400 basis points.

Of the 12, three members, Beth M Hammack, Neel Kashkari, and Lorie K Logan, voted to raise rates by 25 basis points.

“My colleagues and I considered the economic shocks of recent years, strained supply chains arising from the pandemic, military conflicts, energy supply disruptions, substantial increases in tariff rates, and yes, the surge in AI-related investment,” Warsh told reporters.

“We are not relying on any one individual piece of data as cover or as an excuse, or as validation. What I care about and what I think the Committee cares about is trends on the data.”

Monetary policy decisions have become more uncertain as Warsh has scrapped forward guidance, which typically helps financial institutions and journalists better understand upcoming policy choices.

Flying blind

That is putting pressure on analysts.

“With little guidance on the reaction function under the new chairman, markets are filling the void with speculation that Warsh may be eyeing a surprise hike to reinforce anti-inflation credibility,” Barclays economists said in a note.

Citadel Securities earlier this week forecast a rate hike. Meanwhile, analysts at S&P Global forecast that rates would hold steady.

At the last meeting, the central bank’s governors were evenly split on whether to raise interest rates this year, as the central bank maintained rates during its first meeting under Warsh.

Warsh had previously said that there was “no tolerance” for inflation as the central bank pushes to reach the Fed’s 2 percent target.

Market shifts

Financial pressures on the broader market eased last month, with consumer inflation moderating. The Consumer Price Index report released in July for the month of June by the US Labor Department’s Bureau of Labor Statistics showed a 0.4 percent decline in consumer inflation, marking the first monthly decline since April 2020 in the early days of the COVID-19 pandemic. However, that was a correction from the previous month, when the CPI rose by 0.5 percent.

The CPI remains elevated at 3.5 percent on an annual basis, according to the report, though that is still a slowdown from 4.2 percent in May. However, consumers are still feeling the pinch, especially at the petrol pump.

Prices are on the upswing. The average price for a gallon of petrol is $4.09 ($1.08 per litre), up 3 cents from this time last week, and up from $3.86 ($1.02 per litre) this time last month, according to the American Automobile Association (AAA), which tracks daily petrol prices. By comparison, daily petrol prices were $2.98 ($0.78 per litre) when the US and Israel first struck Iran on February 28.

Those pressures are echoed by a slump in consumer confidence for the third straight month, according to The Conference Board, which released its report on Tuesday.

“Consumers anticipate little improvement in business conditions over the next six months,” Dana M Peterson, chief economist at The Conference Board, said upon the report’s release.

Political flashpoint

The decision is overshadowed by pressure from the White House. Interest rates have been a point of contention between Trump and the central bank. Trump has long pushed the Fed to cut rates, putting former Chair Jerome Powell in the crosshairs and making him the subject of investigations by the US Department of Justice.

But Warsh has yet to become a target of Trump’s scorn. “Kevin is fantastic,” he told reporters on Monday on board Air Force One. “He’s got a board, and the board members are very political.”

Trump made those claims despite the central bank’s longstanding commitment to maintaining its independence from political pressure.

Shipping through the Strait of Hormuz remains in effect halted.
Tankers are now avoiding another critical waterway – Bab al-Mandeb – as Yemen’s Houthi forces threaten Saudi-linked vessels. Ukrainian strikes have hit Russian export infrastructure.
Three major routes are now disrupted at once: the Gulf, the Red Sea and the Black Sea.

Together, they threaten trade flows equivalent to nearly a quarter of global oil supplies just as reserves sit at multiyear lows.
Goldman Sachs says oil could rise above $120 a barrel by the fourth quarter if disruptions in the Strait of Hormuz alone persist.
Economies worldwide are bracing for another energy shock.

Iraqi Prime Minister Ali al-Zaidi is leading a high-level delegation to Turkiye, in his first visit to the neighbouring country since taking office in May.

Accompanied by ministers and senior officials, al-Zaidi’s visit on Tuesday will focus on “strategic cooperation” between the two countries, as well as issues related to security, water and the economy, according to government spokesman Haider al-Aboudi.

Relations between Iraq and Turkiye have fluctuated over the past decade but remained a priority for both sides, particularly for Iraq in relation to oil and water resources.

And the launch of the US-Israel war on Iran in February and the subsequent closure of the Strait of Hormuz have elevated Ankara’s importance for Baghdad, prompting it to press Turkish authorities to resume and increase the exporting of oil through the Iraqi-Turkiye pipeline after years of suspension.

New oil agreement

The two countries are seeking to sign an oil pipeline agreement that governs the export of Iraqi oil after the expiration of the previous deal on Monday.

A source from Iraq’s Ministry of Oil told Al Jazeera that a technical delegation arrived in Ankara late last week to finalise a one-year extension of the old oil-exporting agreement until a new deal is concluded.

“The new Turkish terms regarding a new agreement are very difficult to be accepted by Iraq. For this reason, no one other than the Iraqi council of ministers is to take such a decision regarding this issue,” said the official on condition of anonymity.

”Turkiye wants to increase the interest from $1.35 for each barrel to $7, and the export capacity must not be less than 1.5 million bpd [barrels per day], whether Iraq can reach this level or not,” the source added.

Part of al-Zaidi’s plan is to find new energy deals and secure alternate routes to export Iraqi crude via Turkiye and Syria and to the Mediterranean Sea.

Iraq signed energy deals estimated at $200bn with US companies during al-Zaidi’s visit to the United States earlier this month, and the government aims to increase its oil and gas production, as well as to diversify exporting options.

“There is an urgent need to find new export outlets away from the Strait of Hormuz, which no longer meets Iraq’s requirements. We must expedite and shorten the timeframe for negotiations and contracting in order to establish new export routes,” said Iraqi Oil Minister Basim Khudair.

Development Route 

During his visit, al-Zaidi is also expected to pursue the establishment of strong trade, development and economic ties while seeking to draw from Turkiye’s experience across different industries.

A government source told Al Jazeera that the prime minister will highlight the importance of utilising Turkish expertise in the energy, infrastructure and transport sectors to boost Iraq’s development initiatives.

Among the main projects is the so-called Development Route – a vital transport project that connects Iraq’s al-Fao port in the south all the way north to the Iraq-Turkiye-Syria border triangle through a 1,200km (746-mile) rail and a highway network that passes through 10 Iraqi provinces.

Abd al-Jabar Ahmad, a professor of political science, said continued attacks by armed groups “have effectively derailed” the project.

He also cast doubt al-Zaidi visit’s will yield major results in relation to it, pointing to Ankara’s involvement in a transport corridor seeking to link Turkiye to Jordan through Syria and then Saudi Arabia.

“In my view, the Saudi project stripped Iraq’s Development Road Project of much of its economic and investment appeal,” he added.

Water and security   

Water management is also expected to be prioritised during al-Zaidi’s discussions in Turkiye.

Iraq blames Turkiye for building dams that have affected the flow of water from its two main rivers – the Tigris and the Euphrates – which originate in Turkish territory.

“Iraq views it as an issue that impacts the future of millions of Iraqis,” said the government source.

But the most complicated and sensitive issue concerns security – particularly, the presence of Turkish forces on Iraqi soil to fight the Kurdistan Workers’ Party, or PKK, which Turkiye, the US and European Union have designated as a “terrorist” group.

Military estimates suggest that Turkiye has about 50 small and big bases in three Iraqi provinces – Erbil, Duhok and Nineveh – hosting some 5,000 soldiers and weaponry, including artillery and armoured vehicles, as well as heavy and medium arms.

In mid-2025, the PKK announced it had taken its first steps towards disarmament as part of a wider peace deal with Ankara to end 40 years of war against the Turkish state in a conflict that has killed more than 40,000 people. Still, Turkiye continues to view the armed group’s presence in different mountainous areas in northern Iraq as a national security threat.

But despite the challenges, there is wide support in Iraq to strengthen relations with Turkiye, driven by the belief that ties with the neighbouring country remain important and serve Iraq’s national interests.

“There is a strong Iraqi desire to deepen relations with Turkiye in many aspects, especially in oil as Turkiye becomes one of the most important countries in the region in terms of transit routes for exporting oil to Europe and the rest of the world,” said Issam al-Faily, a political science professor.

“The problem lies in the nature of the Iraqi political climate, which is affected by the ongoing power struggles. The covert Turkish–Iranian rivalry may be one of the reasons that could prevent al-Zaidi from achieving his aspirations in relations with Turkiye. He should balance these very critical issues, if he wants this visit to be successful,” added al-Faily.

Drones launched at Saudi, Jordan and Iraq suggest Iran, or linked groups, may be testing US as it mulls new strategy.

Saudi Arabia has reported intercepting drones that targeted oil facilities in its eastern province and Riyadh.

Saudi’s Foreign Ministry said it “reserves the right to respond” to the attack, which it attributed to Iran-backed armed groups in Iraq.

Separately, Yemen’s Houthi rebels said in a statement on Monday that they had targeted Saudi crude oil transport infrastructure.

It remains unclear whether the two incidents were coordinated or separate.

The attack comes amid a lull in hostilities between the United States and Iran, with mediators suggesting the chances of a return to negotiations have risen.

Following two weeks of intense hostilities, US officials have spoken of a change in strategy, and Washington has paused strikes on Iran.

Iran has said it has also paused its attacks on US allies across the Gulf region.

However, the drone attacks on Saudi and elsewhere suggest that Tehran may be testing the new US stance, and that the armed groups believed to be linked to Iran are not ready to follow suit.

Aside from Saudi Arabia, Jordan and Iraq also reported drone attacks on Monday. Amman said it shot down two drones, while Iraqi security sources reported strikes on camps housing Iranian-Kurdish opposition fighters in the country’s north.

The officials did not identify the source of either attack, but Jordan and northern Iraq were locations in which four US service members were killed over the past fortnight of conflict.

The Houthis announced later on Monday that nine of its fighters had been killed amid escalating military confrontations with Yemeni government forces backed by the Saudi-led coalition in recent days.

Tehran, Iran – Iran and the United States have returned to mediated talks, and their military action is temporarily suspended, but the war continues to impact international maritime corridors beyond the Strait of Hormuz as well as domestic markets.

The near-total closure of the strategic waterway, disruptions in the Red Sea by the Iran-aligned Houthis in Yemen and Ukraine attacking an Iranian vessel in the Caspian Sea have all kept tensions high.

Iran’s government is also facing more tough choices, including a potential fuel price hike amid high social and economic discontent, as the US military enforces a naval blockade of the country’s southern ports for a second time.

The Ministry of Petroleum said on Saturday that Iran has sold $11.5bn of crude oil during the war without specifying the exact dates and $6.5bn during the period of the now-suspended memorandum of understanding (MoU) signed with the US last month. It said the combined figure represented 60 percent of the full-year oil revenue target in the budget.

The signing of the June 17 MoU led to the partial reopening of the Strait of Hormuz and lifting of the US naval blockade on Iran, which eased some of the pressure on global oil markets and allowed Iran to export oil stored on supertankers waiting to sail from its territorial waters. Iran’s Petroleum Ministry said increased oil prices generated about $3bn in additional value in the first half of the year and $11bn from the yields has so far been transferred to government coffers despite US embargoes.

During the previous blockade that was imposed on April 13 and lasted a little over two months, Iranian authorities attested to near-zero crude exports. A prolonged second blockade risks further reducing Iran’s export revenues and piling pressure on Kharg Island, through which about 90 percent of Iran’s crude oil exports pass, and other Iranian storage and export sites, which could in turn affect production at petrochemical plants and make an eventual restart costlier and slower.

The US military’s Central Command (CENTCOM) said that as of Saturday, soldiers had redirected 12 commercial vessels trying to run the blockade that has been in place since mid-July, disabled two that did not comply and boarded two “to ensure total compliance”.

The US military also showed footage of heavily armed soldiers rappelling down from a helicopter onto the deck of the Charminar, an Iran-linked oil tanker subject to US sanctions since last year for allegedly being part of the Shamkhani network. The US says Iranian oil magnate Mohammad Hossein Shamkhani plays a central role in Iranian and Russian shadow fleet operations.

Iran has also said it has been redirecting multiple ships each day to keep the strait closed as its armed forces emphasised that they will not bow to pressure. On Sunday, Iranian media reports said a vessel blew up after hitting a naval mine in the Strait of Hormuz.

Still, CENTCOM has stopped extensive bombing strikes against Iran for two nights with US Ambassador to the United Nations Mike Waltz saying President Donald Trump is giving talks with Tehran “some space”.

Iran has also stopped retaliatory attacks across the region while Ministry of Foreign Affairs spokesman Esmaeil Baghaei said discussions with Oman on reopening the Strait of Hormuz have been productive.

The domestic picture

The oil export constraints, however, are still adding to Iran’s existing economic woes, which are linked to domestic structural issues and mismanagement as well as years of harsh sanctions.

Iran’s infrastructure has also suffered significant damage during the war launched by the US and Israel in late February and may fare worse if the conflict escalates.

The government said last month that about 230 million cubic metres (300 million cubic yards) per day of Iran’s pre-war natural gas output of roughly 650 million cubic metres (850 million cubic yards) was lost due to US and Israeli bombing, worsening electricity and petrochemical shortages.

Sekhavat Asadi, managing director of the Pars Special Economic Energy Zone, said on Sunday that Iran expects to restore more than 100 million cubic metres (130 million cubic yards) per day of that lost production capacity within the coming months.

Authorities are also managing a fuel imbalance as the country faces a deficit of more than 20 million litres (5.3 million gallons) per day of petrol. The shortage is managed through limited but costly imports, blending fuel components, tapping inventories stocked before the war and repeatedly asking citizens to consume less.

The Petroleum Ministry said tighter monthly fuel consumption caps may be imposed if the imbalance persists.

The government said this week that it is seriously considering doubling the price of a third tier of monthly petrol quotas allocated to individuals.

Another petrol price hike was made in December, weeks before the country was swept by a wave of nationwide protests, in which thousands of people were killed in a government crackdown in January. An overnight fuel price increase in November 2019 also triggered deadly nationwide protests.

The capital, Tehran, and cities across the country are facing rolling electricity cuts, which also create water and communications disruptions. President Masoud Pezeshkian said he has ordered industries not to be cut off until late September to avoid further inflaming a bruised jobs market.

The closure of the Strait of Hormuz has also hit Iran’s commerce with China, its largest trading partner and buyer of oil, which has considerably curtailed its overall crude oil imports to adapt to conditions created by the war.

But nonoil trade with China has also deteriorated since the start of the war, falling by 75 percent in March and June when compared with a year before, according to Chinese customs data.

Two near-total internet shutdowns imposed by the authorities, first during the January protests and then during the war, only worsened conditions for Iran’s economy this year as it battles chronic inflation and a rapid dwindling of public purchasing power.

A report last year by the Saba Pension Strategies Institute, a think tank affiliated with Iran’s state-run pension fund, found that while a little more than 30 percent of Iranians lived below the poverty line five years ago, that rate was projected to have reached 45 percent this year – and was still rising.

Spread to Bab al-Mandeb, Caspian Sea

After repeated Iranian threats that escalating the war could spread the scope of maritime disruptions to the Red Sea, the Houthis in Yemen last week declared a blockade against Saudi Arabia, turning back or hitting vessels transiting near the strait of Bab al-Mandeb while also bombing Saudi oil facilities.

Dozens of commodity vessels have still continued their transit through the strait, including Chinese supertankers, but war-risk premiums have increased, raising import and insurance costs for all.

Saudi authorities, who lead a coalition backing Yemen’s internationally recognised government against the Houthis, have responded by launching major air attacks across Yemen.

And farther north, Ukraine has confirmed that it struck a vessel in the Caspian Sea with President Volodymyr Zelenskyy alleging it was carrying Iran-linked military cargo.

Iran’s authorities said it was a commercial vessel importing iron from Astrakhan, a port on the Volga River in Russia, and bound for Bandar Anzali in northern Iran. They said one sailor was killed and three were wounded.

The Iranian Ministry of Foreign Affairs summoned Kyiv’s charge d’affaires in Tehran to deliver a strong protest and a warning that “the act will not go unanswered”.

The incident has raised concerns that the Caspian Sea, a waterway previously used safely for trade, could also become the scene of more military confrontations.

Iran’s Caspian trade is primarily with Russia, Kazakhstan, Turkmenistan and Azerbaijan. It imports essential goods, such as wheat and other grains, corn, barley and animal feed as well as timber and fertiliser.

The country’s exports through the northern maritime route include construction materials, steel products, agricultural goods and some refined petrochemical products.

The war’s expanding disruptions have only prompted hardline state-linked analysts to advocate closer strategic partnerships with China and Russia.

“We can now say that the two war fronts in the Middle East and Ukraine are increasingly intertwined,” Mahdi Kharratiyan, a political analyst linked with Iran’s Islamic Revolutionary Guard Corps, wrote on X on Sunday.

EDITOR’S ANALYSIS

Houthi blockade for now is shaping who moves Saudi crude, not whether it moves, analysts say, even as oil prices soar.

As oil prices hit $100 a barrel on Thursday, experts say they are watching to see which vessels Yemen’s Houthis allow to pass through in the Red Sea as that will indicate how the crude market trends.

Brent futures rose $6.58 or 6.96 percent, to $100.65 a barrel, exceeding $100 for the first time since late May.

That was on the back of the Iran-aligned Houthis saying they were cutting off the passage Riyadh had been using to ship parts of its crude oil once Iran closed the Strait of Hormuz to retaliate against United States and Israel attacks.

On Monday, the Yemeni group declared a naval blockade on shipments from Saudi Arabia and said they would target Saudi, Israeli, and United States-linked tankers in the Bab el-Mandeb, which links the Red sea to the Indian Ocean.

On Thursday, the Houthis attacked two Saudi Arabian oil tankers, the group said, with a Saudi news agency later confirming that one of the two vessels was set ablaze.

It is not clear if the second one was also hit, according to marine analysis firm, Windward.

“The Houthis are quite mercurial and there is no complete clarity on what the blockade means,” said Michelle Bockmann, a senior maritime intelligence analyst at Windward.

“We’re watching now the ability of Chinese-owned tankers at [Saudi port] Yanbu if they are allowed to go through Bab el-Mandeb. Two have gone through but those had been loaded before the blockade was announced.”

The Houthis have previously relied on China for help, including for drone components, and “the Chinese have previously had a free pass”, said Bockmann, including between 2023 and 2025 when the Houthis attacked cargo ships aligned with Israel and the US in the Red Sea in the wake of the war on Gaza.

Windward tracking shows the cargo that moved through the Bab el-Mandeb chokepoint on July 20 was Saudi in origin but Chinese in crew and destination, and it drew no interdiction. The two vessels passed through the same corridor that Western- and Saudi-linked operators were being warned to avoid.

The enforcement is calibrated to affiliation rather than cargo and the blockade is shaping who moves Saudi crude, not whether it moves, Windward said.

“No one has ever been able to predict their actions… but they know you don’t have to do a lot to get the oil markets to react,” said Bockmann referring to the rise in benchmark oil prices on Thursday.

Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, underscored that the standoff in Bab el-Mandeb is happening while crude buffers have nor been replenished after the peak of the Hormuz crisis earlier this year.

“The multiple chokepoints are new and an example of littoral states looking to use their leverage,” Ziemba said.

Diesel also impacted

For now, both the Houthi threats and the continued closure of the Strait of Hormuz through which nearly one-fifth of the world’s oil transited before the US-Israel war on Iran, has sent prices soaring, including at the pump in the US reaching the national average of $4.09 per gallon (3.4 liter).

“Today’s rise in oil prices could cause $0.10 to $0.20 rise over the next week or two per gallon average price in US,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

But De Haan is looking beyond the two straits and says he’s watching the availability of diesel as price per gallon averages $5.34.

“Diesel prices are being impacted more significantly,” he told Al Jazeera.

One reason behind that is that Ukrainian drone attacks have taken offline some of Russia’s oil refineries. The shortages are being felt domestically leading to Russia banning diesel exports, De Haan said.

“Oil exports are one story, but supplies of diesel gasoline, jet fuel is another story,” he said.

Another unknown in the mix is the role of China which, historically has been a major importer but slashed those imports in the past few months, helping stabilise global prices as some pressure on demand eased.

“It’s been one of the reasons that oil prices haven’t gone up dramatically – that china slashed its imports, and no one predicted that,” De Haan said. “For now, we don’t know if china is using its own strategic reserves or if it will start import again.”

Between those geopolitical plays and the upcoming hurricane season in the US, there is “another wildcard ahead for global refining capacity” and prices, De Haan said.

America’s war on Iran has already cost the US nearly $110 billion. Now, the Trump administration wants another $67 billion, even after declaring victory. Al Jazeera’s Emma Withrow breaks down the growing price tag.

The announcement by the head of Yemen’s Presidential Leadership Council, Rashad al-Alimi, to resume oil exports starting July 20 following a halt that began in late 2022 has revived hope that the Yemeni government’s most important source of foreign currency will be restored. The government, struggling economically and facing continued Houthi rebel control over Yemen’s northwest, needs the money – and has pledged to direct the revenues towards paying salaries, improving services, and supporting economic stability.

However, the flow of oil from Yemen’s fields to global markets does not depend solely on a decision made by politicians; it requires creating a security environment, after years of war, that allows for the protection of facilities, pipelines and ports, in addition to restoring the confidence of shipping and insurance companies, as well as international buyers.

With Yemen’s war threatening to escalate after a four-year period of calm, the stability the country needs to resume oil exports may be elusive.

The export test

Yemen has proven oil reserves estimated at about three billion barrels, primarily concentrated in the Masila, Marib and Shabwa basins. While the United States Energy Information Administration (EIA) indicates that the country still holds sufficient resources for production and export, the security environment hinders their extraction and transport to global markets.

Yemen’s oil production reached a historical peak of about 439,000 barrels per day (bpd) at the beginning of the millennium, but it has gradually declined due to the depletion of some old fields. This decline accelerated with the outbreak of the war in 2014 and the targeting of oil infrastructure, settling at a level of 19,000bpd in 2024, according to the International Monetary Fund (IMF).

A report published by S&P Global estimated actual production, following the halt in exports, at about 7,000bpd to 10,000bpd in 2023 and 2024, almost all of which was for domestic use.

Yemeni Minister of Oil and Minerals Mohammed Bamqaa said that export revenues would be deposited in the Central Bank as part of a government directive to bolster the state’s financial resources, pointing out that there are oil stockpiles exceeding 1.7 million barrels ready for export.

Bamqaa added that total production will initially reach about 60,000bpd. He explained that the ministry has directed oil companies to prepare timelines to increase production and develop the fields, in a way that raises production capacity by up to 25 percent during the first month after exports resume.

Professor of financial economics at Hadramout University, Mohammed al-Kasadi, told Al Jazeera that while he expected oil production to meet the 60,000bpd figure mentioned by Bamqaa, the figure does not reflect the actual volume of exports, as the local market consumes about 20,000bpd to operate refineries and power plants, which makes the quantities available for export likely to hover at about 40,000bpd.

Hassan Mohammed Moghalis, an expert in Yemeni affairs, told Al Jazeera that most of the fields located in government-controlled areas remain capable of production. At the forefront of these are the Masila fields in Hadramout and the al-Uqla fields in Shabwa, which represent the fundamental base for any anticipated resumption. Moghalis explained that crude oil can be transported via pipelines to Arabian Sea ports.

However, Moghalis pointed out that resuming exports does not simply mean opening the valves, as some fields require maintenance and restoration after a long period of suspension. Additionally, pipelines and pumping stations require technical reviews to ensure their readiness before resuming regular operations.

Market confidence

Despite the importance of restarting production at the oilfields, experts believe bigger obstacles await after the oil reaches Yemen’s ports. Houthi attacks targeting export ports in Hadramout and Shabwa in late 2022 made shipping and insurance companies more wary of handling Yemeni crude, pushing up insurance costs and weakening buyers’ willingness to enter into contracts.

The Houthis have conditioned the resumption of exports on them receiving a share of the revenues to cover public sector salaries.

Al-Kasadi, of Hadramout University, says that the government’s success in pumping oil to the port does not automatically guarantee a successful export process. Maritime transport and insurance companies primarily assess the level of security risks and the likelihood of ports or tankers facing renewed attacks – currently a particular concern in light of Houthi attacks on shipments tied to Saudi Arabia, which supports the Yemeni government.

Al-Kasadi added that the oil market relies heavily on trust and stability. Therefore, any export operation requires buyers to be convinced that shipments will depart safely and that export activities will not suddenly halt again.

Moghalis, the expert, believes that providing military protection for ports and pipelines is the first step, but not the only condition. It is also imperative to restore the confidence of insurance companies and international buyers, as oil does not reach markets solely through production, but rather via an interconnected system of transport, financing and insurance.

He added that any new attack on the ports, even if it does not cause significant material damage, could be enough to send the sector back to square one, given shipping companies’ sensitivity to risks in conflict zones.

But, as al-Kasadi pointed out, a resumption in exports is vital. He argued that the halt in exports was not merely an oil sector crisis, but rather developed into a comprehensive financial crisis. The government lost its most crucial source of foreign currency, which negatively impacted the Yemeni rial’s exchange rate and the state’s ability to finance basic services.

Economic pressure

Despite the importance of resuming exports, Yemeni affairs expert Abdul Karim al-Ansi warned against overstating its immediate impact on the Yemeni economy.

He told Al Jazeera that the resumption of exports will undoubtedly provide a vital source of foreign currency and afford the Central Bank greater leeway to support monetary stability. However, it will not be enough on its own to end the economic crisis, as the Yemeni economy faces broader challenges related to the division between government- and Houthi-controlled areas, weak non-oil revenues and declining economic activity.

Al-Ansi added that the extent to which Yemenis benefit from oil revenues will ultimately depend on how these funds are managed and the government’s ability to channel them into salaries and basic services, rather than solely on the volume of exports.

And while successful initial shipments could send a positive signal to markets and investors, al-Ansi stressed that the real test would be whether exports can be sustained. Yemen’s economy needs a steady flow of foreign currency, rather than sporadic shipments that stop whenever security conditions deteriorate.

The suspension of oil exports has not only deprived the government of its most important source of revenue, but also intensified pressure on the foreign exchange market. As dollar inflows from oil sales have dried up, demand for foreign currency has remained high to finance imports of essential goods, particularly food, fuel and medicine. The resulting shortage has weakened the Yemeni rial and contributed to rising inflation.

These pressures have been compounded by the monetary division between the Central Bank in Aden and the Houthis in Sanaa, which has created two separate financial systems and exchange rates. The split complicates monetary policy and limits the authorities’ ability to use oil revenues in a coordinated way to stabilise the economy.

Al-Kasadi said that Saudi financial support for the government had recently helped contain currency volatility in government-held areas. However, he stressed that such support was no substitute for a steady and sustainable flow of oil revenues – which needs a period of stability, something that may be difficult if the conflict escalates in Yemen, as it is currently threatening to do.

The United States continued to hit Iran for a 12th consecutive night early on Thursday, and Iran retaliated, striking targets across the Gulf, particularly in Kuwait and Jordan.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Thursday that an explosion set a tanker ablaze in the Strait of Hormuz after it attempted to navigate the southern route off the coast of Oman.

Here is a recap of what happened on Wednesday night and Thursday.

Where did the US attack Iran?

US Central Command (CENTCOM) said at 02:30 GMT on Thursday that it concluded the latest round of strikes against Iran.

It targeted Iranian military targets, including maritime capabilities, missile and drone storage facilities, coastal surveillance sites and air defence assets, CENTCOM said, without specifying what areas in Iran were struck.

A local official told the Mehr news agency that US missiles struck the area around a passenger terminal in Shalamcheh, a western city near the Iraqi border. Two people were killed in the attack, the deputy governor of Iran’s Khuzestan province told the state broadcaster IRIB on Thursday. Local media also reported that 11 people were injured.

Al Jazeera’s Tohid Assidi reported from Iranian capital Tehran that overnight strikes targeted at least three cities in the southwestern province of Khuzestan. This included the city of Ramshir, where an asphalt facility was reported to have been targeted.

In Hormozgan province, explosions were heard in the city of Sirik, which overlooks the Strait of Hormuz, Assidi reported.

He added that the governor confirmed an overnight attack in Bushehr on a power substation near the city’s nuclear power plant. This resulted in a few hours of power outage in the city.

IRIB also reported that explosions were heard in Iran’s Jask.

The Tasnim news agency reported that a US missile hit a location on the outskirts of the city of Andimeshk.

Two naval search and rescue vessels were hit and seriously damaged in a US attack on Iran’s Hormozgan, the ISNA news agency reported, citing the province’s Ports and Maritime Administration.

Where did Iran hit back?

Kuwait

The IRGC claimed attacks on US assets in Kuwait on Thursday.

It said it had “attacked and destroyed a large warehouse of military equipment, a Patriot missile defence system, and a hangar of American MQ9 drones” at Ali Al Salem airbase.

Addressing the Kuwaiti people, the IRGC insisted that it was the US, not Iran, that had “violated your territorial integrity and sovereignty”.

It said its attacks were aimed at US bases, territory it described as beyond the control of Kuwait’s own border guards.

“So it is America that has violated your territorial integrity and sovereignty, not us. We are attacking lands occupied by the American army, an army that knows nothing but crime,” the IRGC said.

Jordan

Later on Thursday, the IRGC claimed attacks on US assets in Jordan, saying it had “destroyed a radar of the American THAAD missile defence system with lightning strikes”.

“A Patriot system and a C-RAM radar were also targeted and destroyed, and the fuel tanks of the American base were set on fire,” it said.

The IRGC added that “a large helicopter equipment warehouse and a helicopter repair and maintenance shed were also set on fire and destroyed”.

Addressing the Jordanian people, it insisted that its actions did not violate Jordanian sovereignty, arguing that the US military presence infringes on local authority and that targeting US forces was a legal and necessary response.

What happened in the Strait of Hormuz and the Red Sea?

The IRGC said an explosion set a tanker on fire in the Strait of Hormuz.

In a statement carried by Iranian media, it said two other vessels quickly turned back following the explosion.

The IRGC claimed the three ships were acting under US orders and had “intended to pass through the mine-laid route south of the Strait of Hormuz”.

“The powerful IRGC Navy emphasises that the Strait of Hormuz is under our control and that as long as America’s evil deeds in the region continue, it is completely closed and no oil tanker will enter or exit [the strait],” it warned.

“Any ship that is deceived by America and intends to pass through without coordination with the Islamic Republic of Iran will suffer the same fate.”

The UK Maritime Trade Operations Centre said a ship was targeted 70 nautical miles (130km) off the Saudi coast, causing a fire on board. There was no mention of casualties among the crew.

The Houthis, meanwhile, claimed a major operation against two Saudi oil tankers in the Red Sea, called the Encelia and the Layla. The Saudi SPA news agency confirmed the Encelia was hit.

The Houthis said they targeted those two tankers with cruise and ballistic missiles as well as drones, causing huge balls of fire and devastation.

The Houthis framed the attack as part of a tit-for-tat campaign against Saudi Arabia. They are calling it a “siege-for-siege”. They said it has been 12 years since Saudi Arabia has been imposing a siege on the Yemeni people, and that it is now time for Yemen and the Houthis to respond in kind. Riyadh has rejected Houthi claims that it had besieged Yemen.

Washington vows revenge for US military casualties, while Iran claims attacks on US sites across the region.

The United States is carrying out its 10th consecutive night of attacks against Iran, with Iranian media reporting explosions in Sirik, Bandar Abbas, Qeshm Island, and Isfahan.

US Central Command (CENTCOM) announced the operation on Monday evening, claiming that the strikes are “designed to further degrade Iranian military capabilities used to attack commercial shipping in the Strait of Hormuz”.

The Islamic Revolutionary Guard Corps (IRGC) issued a statement claiming to have retaliated by launching ground-to-ground missiles at “US HIMARS missile systems” stationed at Camp Arifjan in Kuwait.

Two Greek-owned oil tankers in the Strait of Hormuz were struck earlier on Monday, while the United Kingdom Maritime Trade Operations, which monitors attacks on ships, reports that another tanker has been hit off the coast of Oman’s port city of Limah.

Shortly before the night’s bombing began, US President Donald Trump took to social media to warn that Iranian attacks on US military personnel would be paid back “many times over”. On Friday, two US soldiers were killed, and a third was reported missing when an Iranian missile struck a military site in Jordan, while another US service member was killed in northern Iraq.

Trump also reiterated earlier warnings that continued Iranian attacks on commercial vessels in the Strait of Hormuz would be met with a stronger response.

Meanwhile, Yemen’s pro-Iranian Houthis have declared a blockade on Saudi Arabia, escalating tensions and sparking fears that the Yemeni conflict, which had been relatively quiet for four years, may be about to reignite and threaten shipping in the Red Sea.

The deals include rebuilding the long-defunct Iraq-Syria crude oil pipeline, which could bypass the Strait of Hormuz.

Iraq has struck dozens of agreements and partnerships with American companies, many in the oil sector, during a visit to the United States by Prime Minister Ali al-Zaidi.

“A total of 48 agreements, memoranda of understanding, cooperation agreements and partnership declarations were signed between public and private sector entities in Iraq and the United States,” the Iraqi leader’s media office said on Saturday.

They include “cooperation and partnerships involving the ministries of oil and electricity … with ExxonMobil, KBR, GE Vernova, Shell and Halliburton”, as well as several deals related to the construction of a major crude oil pipeline between Iraq and Syria.

Iraq also signed a deal with Starlink, which dominates the global satellite communications sector, to introduce services to the country.

The preliminary deals, signed at a US-Iraq business summit at the US Chamber of Commerce in Washington on Friday, come as Baghdad seeks to move away from dependence on the Strait of Hormuz, where shipping and oil exports have been heavily disrupted due to the US-Israel war against Iran.

Iraq and Syria signed a cooperation agreement to reconstruct the long-defunct Iraq-Syria oil pipeline, which runs from the oil-rich Kirkuk region in northern Iraq to Syria’s Mediterranean port of Baniyas.

Iraq’s state news agency reported that major US energy company Chevron would carry out the project under the agreement.

The US Department of State said it welcomed Iraq and Syria’s plan to rehabilitate the pipeline, for which a “US-led international consortium” would “execute the technical and financial aspects”.

“Upon rehabilitation, this groundbreaking project will have an initial transport capacity of two million barrels per day of crude oil,” the department’s statement said. It described the pipeline as “a critical energy corridor linking Iraqi oil production to Mediterranean export markets and beyond”.

‘Make Hormuz an afterthought’

The US ambassador to Turkiye, Tom Barrack, said Iraq’s latest oil pipeline agreements would lead to a programme “that will make the Strait of Hormuz an afterthought”.

In addition to the Syria pipeline project, Chevron signed two other agreements with Iraq focused on boosting oil production, according to the company’s president of corporate business development, Jake Spiering.

In total, Iraq’s initial agreements with US firms, spanning the energy, healthcare and technology sectors are worth more than $60 billion, Reuters reported.

“We are using an open-door policy,” al-Zaidi ⁠⁠said at the business summit. “Everybody who has a project can come and talk to us. We will not make it difficult for anyone.”

US President Donald Trump welcomed Iraqi Prime Minister Ali al-Zaidi to the White House. Trump praised the ‘tremendous chemistry’ between him and the PM and said the countries will be announcing a new ‘massive’ oil partnership.

The United States carried out attacks against Iran for a third consecutive night late on Monday.

Iran has continued to hit targets in the Gulf in several waves of retaliatory strikes on Tuesday, including UAE‑flagged oil tankers in the Strait of Hormuz and US military facilities in Bahrain and Kuwait.

Here is a recap of what has happened on Monday night and Tuesday, and what each side has said.

Where did the US attack Iran?

US Central Command, the military’s regional command known as CENTCOM, said its latest strikes began at 4:45pm ET (20:45 GMT) on Monday and were aimed at degrading Iran’s capacity to attack “innocent civilians and commercial shipping” in the strait.

CENTCOM later announced the conclusion of its strikes and said the latest round of attacks on Iran lasted five hours. It added that US forces “successfully struck military targets across Iran including Bushehr, Chah Bahar, Jask, Konarak, Abu Musa, and Bandar Abbas”.

Iranian state television and semi-official news agencies reported explosions throughout the night across the country’s southern coast, including the port city of Bandar Abbas, and on Kish and Qeshm islands, as well as the town of Jam in Bushehr province.

A projectile that struck western Bandar Abbas caused no casualties, the Fars news agency reported, citing the regional governor’s office.

What areas did Iran target?

For its part, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had launched a wider retaliatory campaign against US allies and interests across the Gulf.

Iran’s Tasnim news agency reported that Iranian forces had struck several “violating” vessels in the strait, and that a US-made drone had been shot down near Bandar Abbas.

The UAE: The UAE said two of its oil tankers had been hit by Iranian cruise missiles in Omani waters in the Strait of Hormuz. The UAE added that one Indian national crew member had been killed on one of the tankers, and eight other people were wounded.

Iran’s Tasnim news agency said the IRGC hit two “offending” oil supertankers, citing an IRGC statement – apparently referring to the two UAE tankers.

Kuwait: The Iranian army said on Monday that it had carried out a drone attack on US military targets in Kuwait. In a statement posted by state broadcaster IRIB, the army said it launched drones at a US Patriot missile system, fuel tanks, a watchtower, an ammunition depot and communication systems.

Bahrain: The IRGC said it targeted “several weapons storage depots, a satellite communications centre, and a building housing US forces” at al-Juffair Base in Bahrain. It also said it had hit the US Fifth Fleet in Bahrain with missiles and drones.

Air sirens have been heard four times in Bahrain on Tuesday so far.

Jordan: Jordan’s army said it shot down four missiles in Jordanian airspace that were fired from Iran, according to the official Petra news agency. After this, the IRGC said it launched ballistic missiles at US forces and key facilities at an airbase in Jordan.

In a message addressed directly to Jordanians, the IRGC insisted that the operation was aimed at the US military presence in the country rather than at Jordan or its citizens. “You know that we hold no animosity toward your country. On the contrary, we deeply love you, the noble people. You understand the pain and suffering of the Palestinian people better than any other nation, and you are aware of the crimes of the Zionist regime in the massacre of 70,000 Palestinians, including 20,000 children in Gaza, carried out with the direct involvement of the United States,” it said.

What have the US and Iran said?

US President Donald Trump formally notified Congress on July 10 that fighting with Iran had resumed on July 7, invoking his authority to keep US forces in combat for another 60 days without lawmakers’ approval.

At a news conference on Monday, Trump said Iran’s offensive capabilities were being dismantled, but he still thinks a “deal is possible” despite the return to open fighting.

Trump also repeated an earlier demand that Gulf nations help cover the cost of protecting shipping, saying Washington was “protecting a very rich portion of the world” and expected to be paid for it.

On Monday, Trump also threatened to “take out” Kuh-e Kolang Gaz La, also known as Pickaxe Mountain, a suspected nuclear site near the Natanz uranium enrichment facility in central Iran.

Meanwhile, the US blockade on Iran, confirmed by the US Navy-led Joint Maritime Information Centre (JMIC), is due to begin at 20:00 GMT on Tuesday.

The US’s blockade covers Iran’s ports and terminals along the entire southern coastline, according to JMIC.

Ebrahim Azizi, the head of the Iranian Parliament’s National Security Committee, has warned that Iran remains steadfast in defending its red lines, following the formal introduction of a bill to manage the Strait of Hormuz.

In an X post on Tuesday, Azizi wrote: “Last night, coinciding with the downing of US drones, the ‘Strategic Action for the Security and Sustainable Progress of the Strait of Hormuz and the Persian Gulf’ bill was formally introduced in Iran’s Parliament. We remain steadfast in defending our red lines, particularly regarding the management of the Strait of Hormuz.”

What is happening to shipping in Hormuz?

Oil prices rose more than 9 percent on Monday, with Brent crude climbing to about $81 a barrel, its highest level since mid-June.

Kpler, the ship-tracking firm, said crossings through the strait fell by about 52 percent between July 10 and July 12, compared with the previous week.

Iraqi Prime Minister Ali al-Zaidi is travelling to the United States for talks with President Donald Trump, in what will be his first foreign trip since taking office in May.

During this week’s meetings, al-Zaidi is expected to sign agreements in energy and trade while also boosting investment with US companies.

Iraqi government spokesman Haider al-Aboudi told reporters on Sunday the visit to Washington, DC, will mark a shift in the countries’ relations “from a framework of crisis management to a strategic economic partnership”.

The focus, he said, would not be about striking a “temporary” agreement but about establishing “a durable, long-term partnership that serves the shared interests of both countries”.

Al-Aboudi said oil would be “a top priority” during the visit as the Iraqi government seeks to increase production and find alternative export hubs to lessen the consequences of any future closure of the Strait of Hormuz.

Iraq was one of the countries badly hit by the shutting down of the critical waterway in recent months due to the US-Israel war on Iran, as about 90 percent of its 3.4 million barrels per day (bpd) of exports passes through it.

Al-Aboudi said Iraq’s proposal to establish an energy and development fund with the US would be on the table to finance any projects that would be agreed upon, especially in the energy sector.

Al-Zaidi had previously said the fund would initially be structured in oil exports of 500,000 bpd with the goal of increasing to as much as two million bpd.

The prime minister has also said Iraq seeks to increase oil production to seven million bpd over the next three years, up from its current output of about 4.5 million bpd.

“Iraq is in need of such kind of cooperation, especially with a partner like the United States to enhance and strengthen its capacity, particularly in the energy, oil, gas, electricity, and petrochemicals sectors,” said Abdulrahman Almashhadani, an Iraqi economic expert and professor.

“However, the critical question remains whether Iraq can provide a safe and stable environment that would encourage US companies to come to Iraq,” he said. “This issue is sensitive and unresolved; it largely depends on the government’s ability to deliver on its commitments to restrict weapons to state control.”

Large delegation

Sources told Al Jazeera the Iraqi delegation to the US comprises more than 70 people, including key ministers, the head of the central bank, the national security adviser, lawmakers and businessmen.

A well-informed source said meetings with US administration officials and the International Monetary Fund (IMF) have also been planned. According to the source, who asked not to be named, Iraq is seeking to secure an IMF loan of up to $8bn.

A separate well-informed source told Al Jazeera that the disarming of pro-Iran Iraqi armed factions and restricting weapons under state authority, as well as Baghdad’s relationship with Tehran, are expected to be among the issues the US side will raise during the visit.

In his first speech in parliament as prime minister, al-Zaidi had promised that the state would have control over weapons in a country where paramilitary groups, including many supported by Iran, have been powerful since the 2003 US-led war on Iraq.

Some armed factions said they would abide by the prime minister’s declaration, but others – particularly the powerful ones that launched missiles and drones at US facilities during the war on Iran – rejected it.

In a statement released hours before al-Zaidi’s trip to Washington, the Islamic Resistance in Iraq, an umbrella group of Iran-backed armed groups in the region, including Iraq, rejected the prime minister’s visit and its outcomes.

“We will not give a blank cheque for all government policies. We warn against replacing military occupation with an economic occupation that is even more dangerous,” the statement said.

“The option of defending Iraq and its legitimate interests will remain on the table,” it added.

Al-Zaidi has said his government is eager to implement a 2024 deal made with the US-led coalition’s military mission in Iraq to end its presence as combat forces by the end of September.

Some of the factions that rejected the prime minister’s disarmament statement said they would wait to see what happens on September 30 and then act accordingly.

Ehsan al-Shammary, a professor of international studies at Baghdad University, said the economic initiatives and the backing that al-Zaidi is seeking from Trump during Monday’s talks would inevitably be overshadowed by the issue of Iran’s influence in Iraq.

Ultimately, he added, it is the issue that will determine the success or failure of a “very important” visit that could “redefine” bilateral relations and “give it a push”.

“Al-Zaidi has little room for manoeuvre. He should choose either to align with the United States or move closer to Iran,” said al-Shammary. “I do not believe Washington is willing to accept a divided sphere of influence in Iraq alongside Tehran. That is why the prime minister’s task appears to be almost impossible.”

Oil prices have jumped amid the latest outbreak of hostilities between the United States and Iran over the Strait of Hormuz.

Brent crude, the main international benchmark, rose more than 4 percent on Monday as Washington and Tehran traded attacks amid their escalating standoff over control of the critical waterway.

Brent futures for September delivery stood at $79.26 a barrel as of 05:00 GMT, the highest since June 22.

US Central Command (CENTCOM) said on Sunday that it had carried out dozens of strikes on Iran to degrade its ability to attack vessels in the strait, hours after striking hundreds of targets in the country.

US forces launched the earlier round of strikes after accusing Iranian forces of “blatantly” attacking a Cyprus-flagged container ship, the MV GFS Galaxy, as it was transiting the strait.

“The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it,” CENTCOM said in a statement late on Sunday.

“US forces are postured and prepared to ensure that freedom of navigation remains available to commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats, and arbitrary declarations.”

Iranian forces on Sunday launched a wave of missile and drone attacks against the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain in response to the US strikes.

Iran’s Persian Gulf Strait Authority, which claims the right to control traffic through the Strait of Hormuz, earlier reiterated that vessels attempting to cross the waterway without using its preferred route would “not be covered by safe passage guarantees”.

“The consequences arising from transit through unauthorized routes shall be the responsibility of the owner, operator, and vessel commander,” the authority said.

After ticking up following Washington and Tehran’s signing of a memorandum of understanding on ending the war last month, maritime traffic in the Strait of Hormuz has declined sharply amid the renewed fighting between the sides.

Just six vessels were tracked crossing the strait between 18:00 GMT on Thursday and 06:00 GMT on Friday, compared with 18-22 daily crossings earlier this month, according to maritime intelligence platform Windward.

Nine vessels were tracked in the waterway between 18:00 GMT on Saturday and 06:00 GMT on Sunday, four of which were flying the Iranian flag, according to Windward.

Roughly 130 vessels transited the strait, a conduit for one-fifth of the global oil trade in peacetime, each day before the start of the war.

Oil prices, which had returned to pre-conflict levels following the signing of the memorandum on June 17, are now about 9 percent higher than before the US and Israel launched their initial strikes on Iran in late February.

Mukesh Sahdev, founder and chief oil analyst at XAnalysts in Sydney, Australia, said he expects the per-barrel price of Brent to remain in the upper $70s during August and September amid the heightened geopolitical uncertainty.

“There could be occasional spikes and dips outside that range,” Sahdev said in a note to clients on Saturday.

“Long-haul procurement forces refiners to make supply decisions weeks in advance,” Sahdev added.

“Those decisions have already reduced immediate reliance on the Middle East, and the latest escalation is likely to reinforce rather than reverse that trend.”

Fabien Yip, a market analyst at IG in Sydney, Australia, said prices are unlikely to approach the much higher levels seen earlier in the war despite the latest turmoil.

“Oil’s return towards pre-war levels in June reflected markets pricing in a best-case outcome for the fragile US-Iran arrangement; last week’s re-escalation exposes how fragile that assumption was,” Yip said in a note to clients on Monday.

“Near-term, the risk premium should keep prices supported, though a repeat of the earlier spike appears unlikely, as demand remains slow to recover while stranded-tanker releases and OPEC+ output quota expansion continue to add barrels to an already oversupplied outlook.”

Major Asian stock markets fell on Monday amid the renewed fighting in the Middle East.

Japan’s benchmark Nikkei 225 fell more than 2 percent in afternoon trading, while South Korea’s Kospi plunged more than 8 percent.

Hong Kong’s benchmark Hang Seng Index dipped about 0.2 percent.

Iran has mounted attacks on Gulf states and declared the Strait of Hormuz closed after the United States conducted its third round of strikes in a week, in a serious escalation as the ongoing conflict spirals.

Tehran on Sunday claimed attacks on Bahrain, Kuwait, Jordan, Qatar and Oman, calling them its response to renewed US bombings on cities along its southern coast.

The widescale US strikes came after Iran shut the Strait of Hormuz — a critical waterway and one of the biggest flashpoints in the conflict — accusing Washington of violating a memorandum of understanding (MoU) signed between the two sides last month.

So, where is the conflict headed? Here is everything we know.

Why has Iran attacked Gulf states and closed Hormuz?

Iran launched missile and drone attacks targeting US military bases and facilities in several Gulf states, while the US Central Command (CENTCOM) carried out a third round of strikes targeting radar, missile, and drone sites across southern Iran last week.

The US attacks came after Iran opened fire on commercial vessels in the Strait of Hormuz and announced the closure of the strategic waterway until further notice, with one crew member missing, according to CENTCOM.

Iran’s powerful parliament speaker and key peace negotiator, Mohammad Bagher Ghalibaf, said on Sunday, “The era of one-sided deals is over.”

“We told you: keep your word or pay the price. Reality is knocking,” Ghalibaf posted on X with an image of Article 5 of the MoU, which relates to the reopening of the Strait of Hormuz.

On Wednesday, US President Donald Trump announced that the ceasefire with Iran was over. His statement was followed by Iran’s Supreme Leader Mojtaba Khamenei pledging to avenge his father’s killing.

How did we reach here?

The fragile MoU reached between the US and Iran had several glaring gaps, keeping the door to escalation ajar.

The tensions spilled over into the Strait of Hormuz again last Monday, when Iran’s Islamic Revolutionary Guard Corps (IRGC) struck three commercial vessels, including a Qatari liquefied natural gas (LNG) tanker off the coast of Oman.

The next day, the US carried out strikes on Iranian military targets, and Tehran responded with missile and drone attacks on US bases across the Gulf, prompting Trump to call off the ceasefire.

The tit-for-tat attacks continued. On Saturday night, the IRGC announced the closure of the Strait of Hormuz until further notice after attacking a container ship using what it called an unapproved route. On Sunday, a second vessel on the strait was hit.

Where did the latest US strikes hit?

CENTCOM said its third round of strikes on Iran last week was “holding Iranian forces accountable” for their recent attack on a Cyprus-flagged ship in the Strait of Hormuz.

It said it hit about 140 military targets that “included Iranian missile and drone sites, naval capabilities, ammunition storage facilities, communication networks, and coastal surveillance locations”.

It added that more than 300 targets were struck over the course of three nights throughout the week “to degrade Iran’s ability to attack civilian mariners and commercial vessels freely transiting the strait”.

Iran’s state broadcaster IRIB said the US launched air attacks on the outskirts of the city of Veysian, in the western Lorestan province, while another strike hit a military base in Iran’s Khondab.

Officials from Bushehr, on Iran’s southern coast, told local media that US forces attacked five cities in the province, including Asaluyeh, Dir, Bushehr, Dashti and Tangestan.

Tehran has said the loss of lives and the extent of damage are under review.

Where did Iran hit back overnight?

Since the start of the ongoing conflict in late February, Tehran has accused the Gulf Cooperation Council (GCC) countries of actively supporting US military operations by hosting its bases and allowing it to use their airspace.

Oman

The IRGC claimed a “heavy and surprise” attack on logistics support centres and refuelling platforms used by US aircraft carriers at the port of Duqm in Oman, according to IRIB.

The IRGC’s public relations office told IRIB the sites were “destroyed” in the attack.

Qatar

The IRGC said it also targeted Qatar’s Al Udeid airbase with ballistic missiles and claimed to have destroyed a fighter plane maintenance centre, as well as a command-and-control centre at the base.

Qatar’s Ministry of Defence said it intercepted incoming Iranian fire. Three people, including a child, were wounded as a result of falling shrapnel from the interception of Iranian attacks, Qatar’s Ministry of Interior said.

Kuwait

Iran’s army said it used explosive drones to target a Patriot air defence system, an ammunition depot and a radar site belonging to the US military in Kuwait.

Bahrain

In another wave of drone attacks, Tehran targeted a US communications system and radar site in Bahrain.

Jordan

The IRGC said it targeted US military facilities at Prince Hassan airbase in Jordan with several ballistic missiles, and claimed to have destroyed a command-and-control centre at the base, as well as hangars housing MQ-9 drones.

What’s happening in the Strait of Hormuz?

Iran has closed down the strait after firing a warning shot that struck a vessel travelling on an unapproved route, and said on Sunday it had disabled a second vessel.

The strait will remain closed until “the end of US interference in this region”, the IRGC said.

Iranian officials told state media the US military has been trying to create an “illegal route” through the Strait of Hormuz, causing insecurity in the area.

The narrow-yet-vital waterway — touted as the artery of global trade, hosting 20 percent of energy flow — has been at the centre of tensions between the US and Iran since the preliminary deal was signed.

Tehran has consistently insisted that only routes approved by Iran shall be taken up during transit through the strait. It says it is open to managing the strait only with Oman, the other coastal country.

The US and the GCC countries have rejected Iran’s claim on the strait and demanded that navigation be freed of interference or any sort of fees.

On Saturday, Iranian Foreign Minister Abbas Araghchi landed in Oman, where the leaders discussed the shipping and management of the Strait of Hormuz, the Ministry of Foreign Affairs said.

How have Gulf countries reacted?

Some countries had sirens blaring on Sunday afternoon, with governments asking residents to stay indoors.

Oman condemned Iran’s attacks and said it is taking “all necessary measures to deal with the developments to preserve the safety of the country and its residents”.

In Qatar, the Interior Ministry said the country’s security threat level is high and urged everyone to remain in safe places and avoid unnecessary movement.

The Kuwaiti army said its forces were responding to “hostile aerial targets” in the country’s airspace, adding that the sounds of explosions are the result of its defence systems intercepting the attacks.

Bahrain’s Interior Ministry said air raid sirens were activated, urging residents to remain calm.