Strait

Oman’s proposal is based on the Strait of Malacca in East Asia, a model whereby ships that use the strait provide voluntary fees.

Iran and Oman have exchanged proposals regarding the future management of the Strait of Hormuz, as points of contention continue to exist between the two nations whose territorial waters border the strategic waterway.

Oman presented a proposal to Iran ⁠for ⁠a joint regional mechanism to manage the Strait of Hormuz with “voluntary fees”, Reuters reported on Tuesday. Under the Omani proposal, which reportedly has regional backing, Iran would not exercise sole control ⁠of the strait, an unnamed Gulf source and Western diplomat ⁠told the news agency.

Oman’s proposal is reportedly based on the Strait of Malacca, which connects the Indian and Pacific Oceans. There, Indonesia, Malaysia and Singapore ask ships that use the strait to voluntarily contribute to fund navigation, environmental protection, and ‌search-and-rescue operations.

This proposal aims to contribute to ending the global disruption to trade caused by the strait’s closure in the US-Israeli war on Iran. Tehran, however, says the strait ⁠cannot go back to its pre-war status where shipping flowed freely,

In comments to Iranian state media on Tuesday, Kazem Gharibabadi, the country’s deputy foreign minister for legal and international affairs, said Tehran rejects an Omani proposal for an equal division of transit routes between the two countries, as such a plan does not address Tehran’s security concerns.

Gharibabadi said that Tehran proposed to Oman that Iran would manage shipping through its side of ‌the strait and Muscat would manage part but not all of the opposite lane.

He added that Tehran has “no plans to negotiate with the US”, but affirmed talks are proceeding “step by step” with Oman, warning that Tehran will consider “any action” to maintain control over the strait, including the resumption of war.

“The Omanis are now suggesting three lines for the maritime traffic: one that runs through Iran’s territorial waters, an international one, and one through Omani territorial waters,” said Al Jazeera’s Resul Serdar, reporting from Tehran. “Despite public statements, our sources tell us Iran is demonstrating some flexibility.”

Al Jazeera’s Tohid Asadi, also reporting from Tehran, said there remain many “points of contention” between Oman and Iran on Hormuz. These include the trajectory of the ships, the fees, the question of who will define the arrangements, and mine clearances – which will reportedly be Iran’s responsibility.

Paul Musgrave, a professor at Georgetown University in Qatar, said Oman’s proposal to Iran to get the Strait of Hormuz running again is positive, but it remains to be seen if hardliners in Iran will go for it.

Musgrave noted that under the Strait of Malacca model, voluntary contributions raise about $70m annually, far from the $1m per ship that’s reportedly been proposed by Tehran as a “service fee” in the Strait of Hormuz.

Meanwhile, Gulf Cooperation Council (GCC) foreign ministers met via video call on Tuesday to discuss the latest developments in the conflict, including ways to improve cooperation on issues surrounding freedom and navigation through the waterway, a statement from the Qatari Foreign Ministry said.

The United States suspended a nearly two-week-long campaign of air strikes against Iran over the weekend after pressure from regional mediators to find a diplomatic solution and to return to the memorandum of understanding signed in June, which would allow shipping to resume in the Strait of Hormuz. The strait carried one-fifth of global energy supplies before ⁠the February 28 start of the US-Israel war on Iran.

The U.S. war with Iran escalated again Thursday as Iran-backed Houthis in Yemen attacked two Saudi Araian oil tankers in the Red Sea, causing global oil prices to surge amid fears of yet another vital energy corridor being choked off by the conflict.

The attacks came after the Trump administration threatened additional strikes on Iran’s nuclear infrastructure while pushing a new deal to help Saudi Arabia develop a nuclear energy program of its own. Also Thursday, four Republicans in the U.S. House joined Democrats in a vote to halt the American military campaign absent congressional approval. Senate Republicans blocked a similar measure.

The price of oil hit $100 a barrel for the first time since May, increasing the financial pressure on Americans at the gas pump and the political pressure on President Trump to end a war he promised would last weeks but has persisted for months. At least 18 U.S. service members have died in the war.

The Houthis, who control the populous northwest of Yemen, receive arms and training from Tehran but had remained largely on the sidelines since the U.S. and Israel launched the war. Their latest strikes complicate already fraught negotiations between the U.S. and Iran after the collapse of a ceasefire this month amid renewed hostilities in the Strait of Hormuz, the other major energy passageway choked by the conflict.

The Houthis had this week announced a naval blockade of Saudi ships in the Red Sea, which stretches along Saudi Arabia’s western flank. That blockade centered on the Bab al Mandeb strait, the only southbound route for Saudi tankers headed to Asian markets.

Tanker traffic has already been heavily diminished in the Persian Gulf along Saudi Arabia’s northeast flank and between it and Iran, because of Iran’s threats to vessels traveling through the Strait of Hormuz. Saudi Arabia had diverted its oil exports to its Red Sea ports and out the Bab al Mandeb, dispatching some 4.5 million barrels via that route per day.

In a social media post Thursday, Trump said that if the Houthis continue attacking ships in the Red Sea, the U.S. “will hold Iran responsible” because the Houthis are an Iranian proxy, and inflict “major military punishment” on the Houthis and Iran.

He said he was “very disappointed” in the Houthis, “in that they have, until now, acted very professionally and smart” amid the Iran war.

At a later event Thursday, Trump said the U.S. is “doing extremely well” against Iran, which he accused of having “evil intentions.”

Democrats in the House and Senate cited the war’s spread to the Red Sea as yet another reason that Congress should act to pass a war powers measure to halt the president’s military campaign. Sen. Chris Van Hollen (D-Md.), who led the unsuccessful effort in the Senate, cited the expansion while recalling how Trump had claimed victory in Iran as far back as March.

“If we won back in March, why are more Americans getting killed in July? If we won back in March, why is the Strait of Hormuz closed? If we won back in March, why is the war expanding as Houthis attack ships transiting the Bab al Mandeb strait in the Red Sea? If we won back in March, why are oil and gas prices and diesel prices shooting through the roof again, imposing costs on every American family?” Van Hollen said. “Is that their definition of winning?”

The Houthis’ military spokesman, Yahya al-Sarea, said the group’s forces conducted “a qualitative military operation” targeting two Saudi oil tankers with missiles and drones for what he said were violations of the Houthis’ blockade on the Red Sea.

The Houthis have accused Saudi Arabia of imposing a blockade on airports and seaports in northwestern Yemen, where most of the country’s population lives and which the Houthis otherwise control. They also blamed Saudi Arabia for an attack this month on Sanaa’s airport to prevent the landing of a plane carrying a Houthi delegation returning from the funeral of Iranian Supreme Leader Ali Khamenei, who was killed at the start of the war.

Al-Sarea said that in addition to striking the two tankers, the Houthis forced 10 other ships to turn back from their passage, will “continue their naval operations against the Saudi enemy” and will “continue imposing the equation of blockade against blockade.”

The escalation of the war — and the shock wave it sent through global energy markets — added to regional uncertainty already being stoked by the Trump administration’s announcement Wednesday that it had agreed to work with Saudi Arabia to develop a civilian nuclear program.

That announcement, after years of U.S. attempts to block nuclear proliferation in the Middle East, sparked widespread concern in Washington, where lawmakers will vote on the deal, and in Israel, which has long feared a nuclear arms race in the region.

Trump administration officials said the deal would “uphold the highest standards of nuclear safety and nonproliferation,” with American firms developing the program. But they provided few details, and questions immediately arose about the absence of clear inspection protocols or any requirement that Saudi Arabia first normalize diplomatic relations with Israel.

On Thursday, Trump said the deal would be conditioned on Saudi Arabia joining the Abraham Accords and establishing diplomatic ties with Israel. White House Press Secretary Karoline Leavitt later said that Trump had not talked to Saudi leaders since making that condition public, but that they would have to agree to it or “the deal is off.”

Leavitt said that Trump had raised the matter with Saudi leaders in the past, and that it is something Trump “feels very strongly about.”

Asked whether Israel pressured the president to impose the condition, Leavitt said, “Not to my knowledge.”

Earlier this week, Defense Secretary Pete Hegseth told Congress that the Iran war has already cost the U.S. $37.5 billion. House Republicans on Wednesday pushed through a $1.15-trillion defense policy bill to fund the war moving forward. Most Democrats voted against the measure in protest of the war, and it faces stiff opposition in the Senate.

Trump in recent days has tried to deny polls showing plummeting support for the war among Americans. On Wednesday, before attending the dignified transfer of the bodies of U.S. service members killed in the war to Dover Air Force Base in Delaware, Trump claimed Americans don’t want high gas prices but “aren’t against the war.”

On Tuesday, Trump posted statistics showing that more U.S. service members died in past wars, which Democrats denounced as disrespectful to those killed in the current conflict.

The Houthis seized control of the Yemeni capital in 2014, along with much of Yemen’s populous northwest. Their advance triggered a devastating Saudi-led campaign to dislodge them. Since 2022, the two sides have been in a stalemate, though tensions have been rising again in recent months.

Mohammed al-Basha, founder of the Basha Report, a U.S. risk advisory firm focused on the Middle East and Africa, said the Houthis’ latest escalation comes as their influence is growing because of the increased importance of Bab al Mandeb while the Strait of Hormuz is choked off by Iran.

“This is their moment, because with everything happening in the Strait of Hormuz, Bab al Mandeb quadrupled in importance. By exerting maximum pressure in this period, they can maximize the effect of any kinetic action they’re trying to do,” Al-Basha said.

“Their narrative is very aggressive. They want war. And they feel that because they want war and sense that the U.S. and Saudi Arabia don’t, that they will submit to their demands.”

Before the war, roughly 15 million barrels of Gulf oil passed through the Strait of Hormuz every day, as roughly a fifth of the world’s traded oil moved through the maritime chokepoint in peacetime.

ADVERTISEMENT

ADVERTISEMENT

With the channel still largely closed and prices elevated, at least seven major pipeline projects are now under construction, in planning or under discussion to push supplies out through the Red Sea, the Suez Canal and the Gulf of Oman instead, according to Gulf officials, energy companies and market analysts.

With the Iran war reignited this month, Brent crude is trading again at around $93 a barrel at the time of writing, well above the roughly $72 it fetched after June’s short-lived truce, and the US benchmark WTI has also risen to roughly $90 a barrel.

Depending so heavily on the Strait of Hormuz “is no longer a prudent long-term strategy,” said Victoria Grabenwöger, a senior researcher at the data firm Kpler.

Two escape valves already exist, and both are close to their limits.

Saudi Arabia’s East-West pipeline, built in the 1980s when Tehran threatened shipping during the Iran-Iraq war, carries crude from the Abqaiq complex to Yanbu on the Red Sea, where tankers head south towards the Arabian Sea or north to the Suez Canal.

Meanwhile, the UAE has been channelling more oil to Fujairah, its port on the Gulf of Oman about 145 kilometres south of the Strait of Hormuz.

Together the two links had a spare capacity of some 3.5 to 5.5 million barrels a day before the war, according to the US Energy Information Administration, and both now run close to full representing around 6.5 million barrels a day.

Abu Dhabi’s state oil company is also racing to finish a project it began before the war.

Its $3 billion (€2.6bn), 300-kilometre pipeline to Fujairah, laid alongside an existing line, is designed to lift deliveries by over 1.2 million barrels a day and is roughly half built, according to Kpler, which expects the official early-2027 completion target to slip to mid-2027 because the port itself must be expanded.

Even that timetable, the firm argues, only became conceivable because of the blockade.

Red Sea relief, Red Sea risk

The Red Sea route has vulnerabilities of its own, and this week served as a reminder.

Yemen’s Iran-backed Houthi rebels, who declared a blockade on Saudi-linked shipping in retaliation for the kingdom’s blockade of Yemen and an attack on Sanaa’s airport, said on Thursday they had attacked two Saudi tankers, the Encelia and the Layla, setting both on fire.

Saudi state media reported a blaze at the bow of the Encelia with no casualties, while the UK Maritime Trade Operations centre reported a tanker struck by “an unknown projectile” southwest of Al Shuqaiq.

The Iran-backed group has disrupted the Bab el-Mandeb Strait before, a maritime chokepoint carrying about 12% of world trade, and a Houthi drone strike forced the East-West pipeline itself to shut back in 2019.

Iraq’s $60 billion bet on Washington

Nowhere is the scramble more urgent than in Iraq, which draws about 90% of state revenues from oil exports and has had to cut output because of its dependence on the Strait of Hormuz.

Prime Minister Ali al-Zaidi returned from Washington last week with 48 agreements signed with American firms, spanning energy, healthcare and technology and worth more than $60 billion, according to Reuters, including tie-ups involving ExxonMobil, Shell, Halliburton, KBR and GE Vernova.

The centrepiece is a deal with Syria to rebuild the long-dormant pipeline running from the Kirkuk fields to the Mediterranean port of Baniyas, a project Iraqi state media says Chevron will execute and which the US State Department, welcoming the plan, called “a critical energy corridor” with an initial capacity of 2 million barrels a day.

Baghdad is also weighing a line from Basra to Jordan’s Aqaba.

Washington’s ambassador to Turkey, Tom Barrack, predicted the agreements would render the Strait of Hormuz “an afterthought”.

Published on 13/07/2026 – 6:56 GMT+2•Updated
6:59

The price of Brent crude, the international benchmark, gained 3.9% to $78.96 per barrel, while the US benchmark crude oil price rose 4% to $74.26 per barrel.

ADVERTISEMENT

ADVERTISEMENT

Prices for both types of crude oil had recently slipped back to the levels seen before the war with Iran began, after the two sides reached an interim agreement to end the conflict and ships resumed transporting oil through the Strait of Hormuz.

However, the United States launched several waves of strikes on Iran early on Monday morning following an Iranian attack on a container ship in the Strait of Hormuz that set the vessel ablaze and left one crew member missing over the weekend. Iran retaliated by targeting countries across the Middle East.

US stock futures fell, with the contract for the S&P 500 down 0.4% and that for the Dow Jones Industrial Average 0.3% lower. Nasdaq Composite futures lost 1%.

In Asian trading, Tokyo’s Nikkei 225 index lost 1.1% to 67,786.86, while in Seoul, the Kospi declined 5.6% to 7,060.69.

Shares in South Korean memory chipmaker SK Hynix, which soared 13% on their Wall Street debut on Friday, slumped 10.6% in Seoul. Its bigger rival, Samsung Electronics, fell 6.7%.

Elsewhere in Asia, Hong Kong’s Hang Seng edged 0.1% higher to 24,202.41, and the Shanghai Composite index shed 1.2% to 3,947.34.

In Australia, the S&P/ASX 200 declined 0.3% to 8,777.00.

US stocks ticked higher on Friday after investors showed sustained appetite for winners of the artificial intelligence (AI) boom. The S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.3%. The Nasdaq Composite climbed 0.3%.

SK Hynix’s shares jumped after trading began at midday after it raised roughly $26.5 billion by selling American depositary shares at a price of $149 each.

SK Hynix’s stock in Seoul had already surged more than 600% over the past year thanks to enthusiasm for AI. The boom has translated into real profits, driven by soaring demand for computer memory. But it has also raised concerns that AI stock prices have climbed too high and that the world’s spending on chips and data centres will not generate enough productivity and profit growth to justify the investment.

That has led to sharp swings in AI stocks, which have become some of Wall Street’s most influential because of their enormous market values.

Nvidia was the single biggest force lifting the S&P 500 on Friday, rising 4%.

Beyond the uncertainty surrounding AI, investors are turning their attention to the upcoming corporate earnings season.

Companies across industries will need to deliver strong profit growth to justify their elevated share prices, which remain close to record highs. This week will bring earnings reports from many of the biggest US banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo, with several reporting on Tuesday alone.

Concerns about how the continued fighting with Iran will affect the global flow of crude oil are clouding the outlook for both energy costs and overall inflation.

High bond yields have been weighing on financial markets worldwide because more expensive oil and persistently high inflation could prompt the Federal Reserve and other central banks to raise interest rates.

Higher interest rates can help keep inflation under control, but they also slow economic growth and weigh on the prices of all kinds of investments.

Additional sources • AP

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.

The US has launched a new wave of strikes on Iran targeting what it says is Tehran’s ability to threaten shipping in the Strait of Hormuz. US President Donald Trump has declared the waterway open while Iran insists it is closed leading to a further escalation of attacks, as Heidi Zhou Castro reports from Washington DC.

Explosions heard in the port cities of Bandar Abbas, Sirik, Chabahar, Bandar-e Deyr and Asaluyeh as US bombs Iran for a third time this week.

Meanwhile, a delegation from Qatar travelled to Iran on Friday for talks aimed at defusing tensions and easing navigation through the Strait of Hormuz – the vital waterway where some 20% of the world’s oil and liquefied natural gas passes.

Trump wrote in a post on Truth Social earlier on Friday: “The Islamic Republic of Iran has asked us to continue ‘talks.’

“We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!”

It is not clear when those talks will be held. Vice-President JD Vance, Secretary of State Marco Rubio, as well as special US envoys Steve Witkoff and Trump’s son-in-law Jared Kushner, are expected to oversee negotiations for the US.

According to Iranian media, Araghchi is in Oman for talks with Omani officials.

A US official said American technical teams would not be present in Oman, but would be in touch with the Omanis and Qataris as developments occurred.

In the early hours of Saturday, Trump also responded to reports that Iran had plans to assassinate him.

The US would “completely decimate and destroy all areas” of the country in retaliation to such an attack, he said.

The Wall Street Journal and other US media reported this week that Israel had shared intelligence with Washington that Iran had recently devised a plan to assassinate the US president.

However, Trump denied that Tehran had made a fresh plan or that Israel was the source of any intelligence. He told the New York Post in an interview that he had been “No. 1 [on Iran’s kill list] for a long time”.

There were also open calls for Trump’s death at the funeral of Iran’s late Supreme leader Ayatollah Ali Khamenei, who was killed in an Israeli strike on his residence in Tehran on 28 February.

On Saturday, his son and successor, Mojtaba Khamenei, released a written message that said vengeance for his father’s killing was “inevitable”.

The “matter depends neither on my personal existence nor on that of other officials. Whether we are present or not, it will come to pass,” Khamenei said.

WASHINGTON — A tentative armistice between the United States and Iran reached less than a month ago appeared all but dead Wednesday after the two sides traded fresh military strikes, and as President Trump directed further attacks on the Islamic Republic.

The escalation marked a dramatic turn after the Trump administration spent weeks selling a diplomatic breakthrough with Tehran that proved controversial across the political aisle, lifting oil sanctions and a naval blockade on Iran in exchange for the promise of talks over the status of the Strait of Hormuz and its decades-old nuclear program.

Now, speaking to reporters at the NATO summit in Turkey, Trump said he believed the truce — which diplomats describe as a memorandum of understanding — was “over” and that it was a “waste of time” dealing with Iranian leadership.

“They’re scum. They’re sick people,” Trump said of Iranian leaders, whom he had characterized last month as “very rational people” and “very nice to deal with.”

The president’s dim views of the ceasefire agreement’s fate were shared by Iran’s foreign ministry, which issued a statement on Wednesday saying the American attacks, the reinstatement of a U.S. naval blockade on the Strait of Hormuz, and Israel’s continuing attacks in Lebanon rendered “important and fundamental” parts of the deal “ineffective.”

The truce’s unraveling was underscored by Trump ordering the U.S. military to launch a series of strikes against Iran on Wednesday afternoon to “further degrade their ability to threaten” the commercial shipping through the Strait of Hormuz.

“The United States is holding Iran accountable for recent unjustified aggression against commercial shipping and civilian crews freely navigating a vital international waterway,” U.S. Central Command said in a statement on social media.

Earlier in the day, Trump signaled that the United States planned to “hit them hard” and floated the possibility of taking over Kharg Island, which is vital to Iran’s economy. His remarks quickly prompted oil prices to rise and global stock markets to fall, a worry that Trump acknowledged but which did not seem to sway his decision-making in relation to Iran.

“If we hit Iran, oil goes up a little bit, it is all right,” Trump said. He later added that the United States may “do some other thing that could lift it a little bit, but I don’t think it’s gonna lift it a lot at all.”

As Trump signals the continuation of fighting, his administration has been seeking more than $67 billion in funding to cover expenses related to the Iran war, a request that Congress has not yet approved as lawmakers have been split over the president’s handling of the conflict.

“The American people are paying the price for Trump’s total failure in Iran,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement Wednesday. “Our troops are back in harm’s way and high gas costs are continuing to punish working families.”

The president’s stance on the war marked the latest setback to a fragile truce that has barely held since the 14-page agreement was signed June 17, as the U.S. and Iran engaged over the last few weeks in cycles of attacks and counterattacks.

Trump was noticeably angrier at Iran on Wednesday as he cast doubt over the deal. Last month, Trump had complimented Iranian leadership for trying to reach a peace deal and celebrated the reopening of the Strait of Hormuz, a crucial shipping route for the world’s oil and gas. But based on his remarks, it was clear he was out of patience.

“I am not happy with them,” Trump said. “They’re cuckoo. There’s something wrong with these people. For 47 years, they’ve been the bully of the Middle East and they are not the bully anymore. They are not the bully anymore.”

Trump expressed frustration with Iran’s negotiators and their resistance to abiding by U.S. demands to reopen the strait. When asked if he intended to send troops to Iran, the president dismissed the idea.

“Why would I go in now?” Trump said. “I’d go in when they’re completely eliminated or an agreement is made.”

Still, the president kept the door open for negotiations, saying that his envoys Steve Witkoff and Jared Kushner “want to negotiate.”

“They’re good people, Steve Witkoff, Jared Kushner, but they have to come back to me,” Trump said. “As far as I’m concerned, it’s just a waste of time dealing with [the Iranians]. They’re liars.”

The latest breakdown to the ceasefire followed a now-familiar chain reaction of tit-for-tat attacks, starting with a series of strikes on three oil tankers transiting the Strait of Hormuz on Tuesday, including a Qatari vessel carrying natural gas, according to the United Kingdom Maritime Trade Operations center.

The Qatari tanker was off the coast of Oman when it was hit and caught fire, the maritime monitor said, in what experts say was a move to thwart ships attempting to use an alternate transit route to the one Iran specified. Iran did not claim responsibility, but a report on Iranian state television said the Qatari tanker came under attack after ignoring warnings to turn back.

The two other vessels were damaged but were able to continue to their destination, according to the U.K. group.

Qatar, which has played a vital role in facilitating negotiations between the U.S. and Iran, condemned the attack on its tanker as “unacceptable.”

The U.S. responded with a wave of strikes against more than 80 Iranian targets aimed at “impos[ing] heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway,” according to a statement from U.S. Central Command. That tally included roughly 60 Islamic Revolutionary Guard Corps small boats in the strait.

Iranian state media said U.S. strikes targeted Sirik, Qeshm Island and Bushehr and Bandar Abbas, while a U.S. drone strike on the port city of Mahshahr killed one Revolutionary Guard member.

Ahead of the strikes, the White House revoked the 60-day temporary license given to Tehran to sell and deliver oil during the truce.

Iran’s military countered with its own strikes on 85 U.S. military facilities in Bahrain and Kuwait; it also shot down an MQ-9 drone, according to a statement on Wednesday.

Kuwait said its military intercepted two ballistic missiles and 13 drones, but that none had resulted in material damage or casualties.

Global oil prices surged 6% on news of Trump’s reversal on the deal, rising to more than $78 a barrel, down from the peak during the war but still above prewar levels.

The renewed violence appeared to have little effect on the funeral for Iran’s Supreme Leader Ayatollah Ali Khamenei, who was killed in an Israeli strike on Feb. 28, in the war’s opening hours.

The funeral, a days-long period of mourning, is set to end on Thursday, when Khamenei’s body will return from Iraq to be buried in the city of Mashhad, his birthplace. Negotiations were to begin once more.

In his remarks Wednesday, Trump said Iranian leaders had asked for a “timeout” to attend the funeral, and that he had promised not to kill them.

“And I said give it to them, and they start shooting missiles,” Trump said.

Whether those talks — which were meant to deal with the thorniest issues between the two countries, including the Strait of Hormuz and Iran’s nuclear program — will go ahead remains unclear. Iran, for its part, maintained a defiant attitude.

“The era of bullying and extortion is over,” wrote Mohammad Ghalibaf, Iran’s parliamentary speaker. “It leads nowhere. We don’t fold.”

Ali Akbar Velayati, a senior advisor to the supreme leader, posted on X that Trump’s policy had “driven the region towards fire.”

“We had previously warned that the region is not a place for the political gambling of small countries, and we have repeatedly proven that adventures are met with an immediate response,” he wrote.

He added that the Axis of Resistance — a reference to Iran’s network of allied groups in Lebanon, Iraq and Yemen — would not be “silent against humiliation and adventurism” and has “its finger on the trigger.”

Bulos reported from Beirut and Ceballos from Washington.

On Tuesday, two tankers were attacked as they transited the Strait of Hormuz via a passage in Omani waters. Gulf countries responded by sharply condemning the attacks and blaming Iran. The United States then launched attacks on Iranian territory, to which Tehran responded by striking Bahrain and Kuwait. US President Donald Trump has now said the memorandum of understanding (MoU) that Iran and the US signed is void.

This latest escalation illustrates how the Strait of Hormuz has become the central issue in the US-Israel war with Iran that began on February 28. Disagreements over the strait’s future have proven to be the hardest to resolve in the US-Iranian negotiations, as questions about Iran’s nuclear programme have been put to the side.

The disruption of traffic in the Strait of Hormuz has an immediate and costly price tag attached, for Iran, for its Gulf neighbours, and for a global economy that has spent four and a half months absorbing the largest oil supply shock in the history of the modern market.

Iran’s leverage is also its liability

For Tehran, the strait is its strongest card – one that is also incredibly costly. Since the war began, Iranian forces have mined the strait, attacked vessels and cut traffic through the passage by roughly 95 percent. This has led to what the International Energy Agency’s Fatih Birol has called “the largest supply disruption in the history of the global oil market”.

That leverage is real: about a fifth of the world’s oil and a fifth of its liquefied natural gas (LNG) normally move through Hormuz, and no amount of Gulf pipeline capacity can fully replace it.

But Iran has effectively been strangling its own lifeline along with everyone else’s. Iranian crude, once sold for $3 a barrel less than international benchmarks, is now selling at a 20 percent discount. The country’s oil exports collapsed by more than 90 percent in May as US naval enforcement squeezed its shadow fleet.

Even before the war, the World Bank projected that Iran’s economy would contract in 2026. The impact of the collapse of oil sales will be far-reaching because of the closure.

A 60-day US Treasury waiver issued on June 22, permitting Iran to sell oil at full market rates through August 21, but has now been renounced following the attacks on Tuesday.

This is the economic backdrop to Iran’s insistence on asserting joint authority over the strait and floating a system of transit fees or “service charges” for passing ships. Washington has made clear that Iran cannot charge tolls in international waters governed by the right of transit passage under the Law of the Sea.

For Tehran, the dispute is not really about toll revenue, which would be rather modest when compared to its oil income; it is about establishing precedent and sovereignty over a chokepoint that is its only real point of leverage once sanctions relief and frozen-asset release are negotiated.

The latter is itself contested: Iran wants half of an estimated $25bn in frozen assets released immediately, while the US has resisted. A separate $300bn reconstruction fund floated in the MoU has already become a political flashpoint in Washington.

The Gulf is paying for a crisis it didn’t start

For the Gulf states, the Strait of Hormuz crisis has meant improvising around geography. Saudi Arabia has redirected crude through its roughly 1,200km (746-mile) East-West pipeline to the Red Sea port of Yanbu, and the UAE has leaned on the Habshan-to-Fujairah line to the Gulf of Oman.

Together, though, these pipelines carry a fraction of what Hormuz once did, at best 7 million barrels a day of design capacity for the Saudi line and under 1.8 million for the Emirati one, against roughly 20 million barrels a day that transited the strait before the war.

Both alternatives have themselves come under attack: Iranian strikes cut the East-West pipeline’s throughput by an estimated 700,000 barrels a day in April, and drone attacks disrupted loading at Fujairah. Seaborne crude exports from Gulf states excluding Iran fell by roughly half between February and March.

Qatar, host to the talks between Iran and the US, has its own acute stake: its entire LNG export industry depends on the Strait of Hormuz, and it has been pushing the hardest for a settlement.

Oman, drawn into Iran’s sovereignty claim as co-owner of the strait’s territorial waters, is caught between commercial interest in a resolution and a legal position, as a signatory to the United Nations Convention on the Law of the Sea (UNCLOS) that publicly rejects Iranian tolls. Iraq, highly dependent on its Gulf terminals, has quietly explored an export route north through Turkiye.

None of these workarounds are cheap, and all of them are political as well as commercial, tying Gulf capitals’ economic fortunes to a settlement between the US and Iran.

The rest of the world: Insurance bills and inflation

Beyond the region, the crisis has been transmitted mainly through two channels: price and insurance. Higher oil prices are passed on to various consumer goods down supply chains and suppress growth. According to estimates, the global economy can slow down to 2.8 percent in 2026 from 3.4 percent last year due to the closure of the strait.

Insurance for Hormuz transit, which cost roughly 0.25 percent of a vessel’s value before the war, has spiked as high as 8 percent, turning a single large tanker’s coverage into a $3m-to-$8m expense. Shipping lines including CMA CGM and Hapag-Lloyd have layered on conflict surcharges of $1,500 to $2,000 per twenty-foot equivalent unit (TEU). Washington’s own International Development Finance Corporation has had to step in as, in effect, an insurer of last resort, offering up to $40bn in reinsurance capacity to keep vessels moving.

China has absorbed the largest share of this pain: It takes close to 40 percent of its crude imports through the Strait of Hormuz and buys more than 80 percent of Iran’s oil exports outright, making it simultaneously Tehran’s most important customer and one of the war’s most exposed bystanders. Japan, which sources 70 percent of its Middle Eastern crude via the strait, has already tapped strategic reserves.

For import-dependent economies across Asia and Europe, the strait’s fate is not an abstraction of Middle East diplomacy; it shows up directly in fuel, freight and fertiliser prices.

Oil and gas dominate the headlines, but roughly 30 percent of the world’s seaborne fertiliser trade also passes through Hormuz.

The World Bank’s fertiliser price index has risen more than 12 percent in the first quarter of 2026 and has since climbed to its highest level since October 2022, driven largely by the closure. The Food and Agriculture Organization has warned that the resulting scarcity of urea and other nitrogen products will show up as lower yields through the 2026–2027 growing season, hitting import-dependent and already food-insecure countries in Africa and Asia the hardest.

Unlike an oil-price spike, which mainly stings at the pump, a fertiliser shortfall reaches into next year’s harvest, meaning an unresolved Hormuz standoff carries a slower-moving but longer tail of economic damage than crude prices alone suggest.

That is the arithmetic weighing on both sides. A deal that reopens the Strait of Hormuz without resolving who controls it risks recreating the same instability that shut it in the first place; one that concedes Iranian toll authority risks a precedent Washington and shipping nations will not accept. Until that circle is squared, the global economy is left pricing in a chokepoint that neither side can fully afford to keep closed, nor fully agree how to reopen.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial policy.

U.S. Central Command (CENTCOM) announced that its forces have launched “a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway.” The U.S. strikes “are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz,” CENTCOM stated on X. “Iran’s demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire.”

The official Iranian state media outlet IRIB reported 13 explosions in southern Iran.

The CENTCOM attacks follow the U.S. Treasury Department revoking a general license authorizing the sale of Iranian oil. That abrogates a key part of the Memorandum of Understanding (MoU) signed by Washington and Tehran on June 18.

Here’s the new Treasury license on Iran: “Revocation and Wind Down of June 21, 2026 Authorization for the Production, Delivery and Sale of Crude Oil, Petrochemical Products, and Petroleum Products of Iranian Origin” pic.twitter.com/2jgRRTQudu

— Phil Mattingly (@Phil_Mattingly) July 7, 2026

While the future of Iran’s nuclear ambitions and its stockpile of enriched uranium are among other key issues addressed in the document, the Strait of Hormuz continues to be a flashpoint.

The latest attacks on shipping all involved tankers.

“A LNG tanker reported being hit by an unknown projectile on the port side engine room causing a fire, whilst travelling southbound through the SOH,” UKMTO reported. That incident took place about eight nautical miles east of Limah, Oman.

Before that, a “VLCC reported being hit by an unknown projectile on the port side upon exiting the SOH” about 16 nautical miles east of Khor Fakkan, UAE, UKMTO added. “Vessel was able to proceed to NPOC [nearest point of call] and no crew injuries were reported.”

The first of the three vessels struck today was a tanker that reported being attacked six nautical miles east of Musandam Peninsula, Oman “by an unknown projectile and has sustained minor structural damage,” UKMTO stated. “No casualties or environmental impact reported and vessel is proceeding to NPOC.”

These attacks all took place along the southern-most route in the Strait, which is controlled by the U.S. and Oman. Iran controls the northern route and the mid-section of the body of water is considered too dangerous to transit due to the threat of mines.

Last Thursday, Iran’s military warned that all oil tankers moving through the Strait must use its approved routes. It also said that interference by U.S. forces in the strait “will be met with a rapid and decisive reaction.”

But the Joint Maritime Information Center (JMIC), a multinational body overseen by the U.S. Navy, told shippers Monday that the route around Oman “has been expanded and remains available for all traffic.”

The most recent attacks on shipping came after that JMIC notification and about a week after Iran and the U.S. promised to stop striking each other. 

What happens next is unknown. The peace talks were paused while Iran holds a weeklong funeral for former Supreme Leader Ayatollah Ali Khamenei, who was killed on the first day of the war in an airstrike.

In an interview with Iranian media posted on X, Iranian Maj. Gen. Mohsen Rezaei, advisor to Iran’s supreme leader Mojtaba Khamenei, seemed to appeal to Iranian hardliners who want to resume fighting.

“Friends who oppose negotiations, be patient; the Americans themselves will derail these talks,” he posited.

This is a developing story.

UPDATE: 6:22 PM EDT –

Video and still images purporting to show the U.S. attacks on Iran are emerging on social media. Bandar Abbas, site of Iran’s key naval base on the Strait of Hormuz, appears to be one of the targets. Bandar Abbas has come under attack several times during this conflict.

Fires seen burning at the Port of Shahid Haqqani in Bandar Abbas, Southern Iran, following tonight’s wave of retaliatory strikes against Iranian military and infrastructure sites by the U.S. Air Force and Navy. pic.twitter.com/ccZPuZvDPG

— OSINTdefender (@sentdefender) July 7, 2026

Bandar Abbas Airport was a major target tonight, where a senior figure in the Islamic regime was present and from where the regime has launched missiles and drones toward neighboring countries. This regime only understands Hebrew and Arabic; it does not understand American… pic.twitter.com/RdDPTgR87T

— Amjad Taha أمجد طه (@amjadt25) July 7, 2026

Video from Shahid Haqqani Port, validated by the network, following U.S. airstrikes on the facility in Bandar Abbas, Iran. pic.twitter.com/msNbYm6r7O

— Faytuks Network (@FaytuksNetwork) July 7, 2026

In a post on X, Axios reporter Barak Ravid said the U.S. strikes on Iran today were “four or five times bigger in scope and power than the previous strikes 10 days ago.”

The U.S. strikes in Iran on Tuesday were four or five times bigger in scope and power than the previous strikes 10 days ago, the U.S. official told me https://t.co/TiDTGTxMTV

— Barak Ravid (@BarakRavid) July 7, 2026

Authorities “have launched a search effort for K2 Airways Cargo 737 AP-BOI after the flight did not land as scheduled in Karachi,” FlightRadar24 reported. “KTA1732 was en route from Sharjah to Karachi when contact was lost with the aircraft. Preliminary ADS-B data indicate a loss of altitude, followed by a climb, and then a second, sudden and dramatic loss of altitude. The final received data point from the aircraft was at 16:21 UTC, placing the aircraft at 1,100 ft AMSL with a reported vertical rate of -22,400 feet per minute.”

According to FlightRadar24’s data, the cargo jet flew east over the Strait of Hormuz and the Gulf of Oman when it disappeared from radar screens at about 12:20 PM EDT.

The Pakistan Airports Authority reported on X that the aircraft was suffering a “navigational system issue” before contact was lost. There were five people onboard at the time.

However; at time 2121PST aircraft was observed on RADAR rapidly descending and with rapid heading change, subsequently RADAR contact and communication was lost approximately 155 NM west of Karachi.

— Pakistan Airports Authority (@Pk_PAA_Official) July 7, 2026

The exact cause of this incident is unknown at this time. While there are no indications that the aircraft was lost due to hostile activity, the area is extremely tense.

UPDATE: 947 PM EDT –

CENTCOM says it has “completed its strikes against Iran, July 7, hitting over 80 targets with precision munitions as an immediate response to Iran’s latest attacks on commercial vessels transiting the Strait of Hormuz.”

“U.S. forces struck Iranian air defense systems, command and control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 Islamic Revolutionary Guard Corps small boats in and near the strait to degrade Iran’s ability to continue attacking international commerce flowing through the international trade corridor,” the command said in a statement.

“Iran recently attacked three commercial vessels transiting the strait including Marshall Islands-flagged M/T Al Rekayyat, Saudi Arabia-flagged M/T Wedyan, and Liberian-flagged M/T Cyprus Prosperity,” CENTCOM added. “The unwarranted aggression by Iranian forces is a clear and dangerous violation of the ceasefire and undermines freedom of navigation. CENTCOM forces remain postured and prepared to hold Iran accountable when the agreement is not adhered to or obeyed.”

Contact the author: howard@twz.com

Qatar and Saudi Arabia also denounced the attacks, each saying a tanker from its country had been hit while transiting in or near the strait, and blaming Iran.

Qatar’s foreign ministry spokesperson Majed Al Ansari said it held Iran “fully responsible” for an apparent targeted attack on a vessel called Al-Rekayyat as it transited near the strait.

Qatar demanded that Iran “immediately cease all practices that undermine regional security” and “refrain from endangering global energy supplies & the resources of the countries of the region in pursuit of narrow interests”, he added in a post on X.

In a separate social media post, Saudi Arabia’s foreign ministry said Iran had targeted the Saudi tanker Wadyan as it crossed the strait.

It added that the assaults were “an attack on the security and safety of international navigation, and the security of global energy supplies”.

Iran’s foreign ministry spokesman Esmail Baghaei described Qatar’s accusations as “contrary to the principle of good neighbourliness”.

In a statement, posted to Telegram, he added that commercial vessels using routes not co-ordinated with Iran or tampering with the ship’s tracking face a risk of collision and disrupt Iran’s efforts to “facilitate safe transit” in the strait.

The UKMTO said a tanker travelling through the strait had reported a fire after an unknown projectile hit an engine room on Monday.

In two separate incidents on Tuesday, a tanker reported being hit as it exited the strait but was able to proceed to its next port of call, while another tanker reported sustaining minor structural damage after being struck, the organisation said.

The US-Iran memorandum of understanding, agreed last month, extended a ceasefire between the two countries.

The 14-point agreement would put an end to all conflict “on all fronts”, says that Iran will never have a nuclear weapon, and also commits a $300bn (£220bn) fund for the “reconstruction and economic development” of the country – although the US is not required to contribute.

As part of the agreement Iran and Oman, which both border Hormuz, must hold talks “to define the future administration and maritime services” in the waterway with other Gulf states.

Tehran effectively closed the Strait of Hormuz, through which about a fifth of the world’s oil and gas supplies are usually transported, following US and Israeli strikes on 28 February.

During the conflict Iran sought to assert its sovereignty over the strait, including by establishing the “Persian Gulf Strait Authority” which it said would manage “safe passage permits”.

Iran’s Fars news agency has reported that under the new deal with the US the strait would ultimately be managed by Iran in co-ordination with Oman, including possible “service fees” for ships to transit the waterway.

July 6 (UPI) — An oil tanker was struck by an unknown projectile near the Strait of Hormuz early Tuesday, the British military said, renewing tensions amid U.S.-Iran negotiations.

The unidentified ship was hit about 8 nautical miles off the coast of Limah, Oman, the United Kingdom Maritime Trade Operations Center said in a statement.

The ship’s master reported the incident at 1:19 a.m. local time, it said.

The strike to the port side of the vessel caused a fire, officials said, though no casualties or environmental impact was reported.

Though Iran has eased its maritime blockade of the Strait of Hormuz, Tehran continues to seek control over the vital energy transit route.

Following the strike, Iran’s state-controlled Islamic Republic of Iran Broadcasting reported that the Qatari tanker Al Rekayyat was targeted after allegedly ignoring Iranian warnings against transiting through what it called the “Omani route” of the Strait of Hormuz.

It said the tanker was being escorted through the route by the U.S. Navy.

It was not immediately clear whether Al Rekayyat had been struck or whether it was the vessel reported by UKMTO.

Al Rekayyat is a liquefied natural gas tanker sailing under the Marshall Islands flag, according to the Marine Traffic website.

Iran has been blamed for attacks on more than 15 ships during its effort to control shipping through the Strait of Hormuz since the United States and Israel launched a joint offensive against Tehran on Feb. 28.

The strait has been a sticking point in ongoing negotiations between the United States and Iran toward ending the war. Iran has resisted the Trump administration’s demand for freedom of navigation through the strait, seeking to maintain authority over shipping routes there.

Late last month, the newly founded Persian Gulf Strait Authority warned vessels attempting to transit outside its approved routes that their security cannot be ensured.

Last week, the two sides held indirect talks in Doha, but made little progress.

Military command issues threat a day after Qatari mediators hailed ‘positive progress’ in indirect US-Iranian talks.

Iran’s military command has threatened ships that attempt to cross the Strait of Hormuz using unapproved routes with a “forceful response,” casting new doubt over trade flows in the critical conduit for global energy supplies.

Iran’s Khatam al-Anbiya Central Headquarters issued the threat on Thursday, a day after Qatari mediators hailed indirect negotiations between US and Iranian officials as making “positive progress” towards a peace deal.

“Any failure to comply with and depart from the designated route or disregard for the navigation protocols of the Islamic Republic of Iran in the Strait of Hormuz will be met with an immediate and forceful response from the armed forces, and will endanger the security of the offending vessels,” the military command said in a statement carried by the country’s semi-official Tasnim news agency.

While Tehran did not specify what prompted the warning, it came after US Central Command (CENTCOM) on Wednesday said it had presided over a security dialogue in Bahrain during which regional leaders expressed their commitment to the “free flow of commerce” in the strait.

Iranian Deputy Minister of Foreign Affairs Kazem Gharibabadi hit out at CENTCOM’s statement on Thursday, saying the forum “cannot establish legal order and security for the Persian Gulf”.

“The region’s security will be ensured through the end of interventions and the US withdrawal from the area, respect for countries’ sovereignty, and acceptance of new geopolitical realities – not under the military umbrella of America,” Gharibabadi said in a post on X.

The Strait of Hormuz, which facilitated about one-fifth of the global trade in oil and liquefied natural gas before the US-Israel war on Iran began in late February, has become a major sticking point in Washington and Tehran’s talks aimed at turning their fragile ceasefire into a lasting peace.

While Iran agreed to make its “best efforts” to arrange the safe passage of ships in the strait in the memorandum of understanding it signed with the US on June 17, Tehran has repeatedly threatened to attack ships that do not use its preferred route close to the Iranian shoreline.

At least 49 attacks on commercial vessels have been recorded in the strait since the start of the war on February 28, according to MarineTraffic.

Most of those incidents, including drone attacks on a Singapore-flagged cargo ship and Panama-flagged merchant vessel on Thursday and Saturday, respectively, have been blamed on Tehran.

While transits through the waterway have risen since US President Donald Trump and Iranian President Masoud Pezeshkian signed their MoU on June 17, they remain far below the roughly 130 daily crossings that took place before the conflict.

At least 45 vessels crossed the strait on Wednesday, up from 34 on Tuesday, according to MarineTraffic data.

After dropping to pre-war levels on Thursday on reports of productive talks in Doha, oil prices largely held steady as markets opened in Asia on Friday.

Brent futures for August delivery stood at $72.07 per barrel as of 02:30 GMT, after dropping below $71 for the first time since the war the previous day.

Brent crude edges up as tit-for-tat strikes imperial return to normality in key waterway.

Oil prices have climbed following the latest flare-up in hostilities between the United States and Iran.

Brent crude, the primary international benchmark, rose about 0.9 percent on Monday after tit-for-tat US and Iranian strikes over the weekend renewed doubts about a return to normal shipping in the Strait of Hormuz.

Brent futures for August delivery stood at $73.21 a barrel as of 03:30 GMT, 127 cents higher than the day before the US and Israel launched their war on Iran on February 28.

“Brent’s partial rebound this morning reflects a market that had perhaps run too quickly on ceasefire optimism,” Fabien Yip, a market analyst at IG in Sydney, Australia, told Al Jazeera.

“Oil had nearly unwound its entire war premium, despite an MoU with no enforcement details and ongoing strikes. Thursday’s attack on a commercial vessel was a reality check, and this weekend’s tit-for-tat exchanges have compounded that,” Yip said.

Asian stock markets were mixed on Monday morning, with losses in Tokyo and Seoul and gains in Hong Kong and Taipei.

Japan’s benchmark Nikkei 225 was 0.7 percent lower, while South Korea’s Kospi was down 1.9 percent.

Japanese and Korean stocks tied to the AI boom saw some of the biggest losses amid heated debate about whether tech firms’ massive investments in the emerging technology will pay off.

Japanese tech giant SoftBank Group fell about 5 percent, while Advantest Corporation, a key maker of semiconductor testing equipment, slumped 3.7 percent.

South Korean memory chip giants Samsung Electronics and SK Hynix dropped about 5 percent and 4 percent, respectively.

Hong Kong’s benchmark Hang Seng Index and Taiwan’s Taiex both rose, gaining 2.2 percent and 1.4 percent, respectively.

“Quarter-end profit-taking is adding to the selling pressure, with investors locking in gains from what has been a remarkable run. The Kospi is up roughly 95 percent this year, and the Nikkei up 37 percent,” IG’s Yip said.

“The underlying concern, however, is whether the AI boom can continue to translate into sustained earnings growth, or whether margin pressure is arriving sooner than the market anticipated.”

US Central Command announced strikes against Iran on Friday and Saturday, citing Iranian attacks on two commercial vessels in the Strait of Hormuz, which in peacetime serves as a conduit for about one-fifth of the global trade in oil and liquified natural gas.

Iran responded to the strikes by launching a series of missiles and drones targeting US military assets in Bahrain and Kuwait.

Washington and Tehran agreed to cease their attacks and renew their negotiations on ending the war, multiple media outlets reported late on Sunday, citing unnamed US officials.

Axios, citing an unnamed senior US official, reported that the sides would hold talks in Doha, Qatar, on Tuesday.

Iran has yet to comment on the reported agreement to cease hostilities or the planned talks.

US President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding to end the war on June 17, but the agreement has repeatedly come under strain due to flare-ups in hostilities and disagreements about the meaning of the text.

Iran’s foreign minister has urged ‘all parties not to interfere’ in the management of the Strait of Hormuz, after the US bombed Iran for a second day following a drone attack on a vessel. Abbas Araghchi says the MoU gives Tehran control of the waterway, during a press conference with his Iraqi counterpart in Baghdad.

Iran’s IRGC says it targeted US military in region after Trump administration launched attack on the country.

The United Nations’ International Maritime Organization (IMO) has suspended plans to evacuate more than 11,000 sailors stranded in the Strait of Hormuz after a cargo ship transiting the waterway was struck by a projectile.

IMO Secretary-General Arsenio Dominguez said several crews had already been evacuated, but the agency had decided to pause the operation until there were “necessary safety guarantees” for those involved.

The United Kingdom Maritime Trade Operations (UKMTO), a Royal Navy maritime security agency, said on Thursday that a cargo vessel had been struck by “an unknown projectile” about 7.5 nautical miles (14km) southeast of Dahit, Oman. No casualties were reported.

The incident comes despite a memorandum of understanding (MoU) signed by the United States and Iran last week that ended hostilities and included provisions aimed at reopening the strategic waterway. Iran had restricted passage through the strait in early March after the US and Israel attacked it on February 28. In April, the US imposed a naval blockade on Iran-linked vessels trying to pass through the waterway.

Since the MoU was signed, commercial traffic has restarted through the strait, but key disagreements remain over which shipping routes vessels should use — and whether Iran gets to charge a toll or fee.

Oman and the IMO have proposed a new shipping corridor that would partially bypass waters under Iran’s direct control. Tehran has rejected the plan, saying it was announced without consultation and raises safety concerns while demining operations are still under way. While Iran has not claimed responsibility for Thursday’s attack on the ship off Oman, it has not denied any role, either.

The latest attack has heightened concerns that tensions over navigation through the strait remain unresolved. Here’s what we know.

Why is the UN evacuating sailors?

Following the outbreak of the US-Israel war on Iran on February 28, Tehran and Washington imposed counter restrictions on the passage of ships through the Strait of Hormuz, leaving thousands of seafarers unable to leave vessels trapped in the waterway.

More than a dozen sailors have also been killed in attacks on ships — some from American missiles, others from Iranian projectiles. Most of those killed were from India.

Even with last week’s agreement between Washington and Tehran to end the conflict, more than 11,000 sailors remain stranded in the strait.

Announcing the evacuation plan on Tuesday, the IMO’s Dominguez said the operation would be conducted in “close cooperation with Iran, Oman, all other coastal states in the region, the United States and the maritime industry”.

Oman’s Ministry of Defence said the operation, which had been under discussion for months, would be carried out in phases.

Denmark also announced on Tuesday that it would join a multinational maritime mission led by France and Britain to help restore safe navigation through the strait.

Why was the ship attacked?

The Singapore-flagged cargo vessel Ever Lovely was struck by what authorities described as an “unknown projectile” while transiting the Strait of Hormuz on Thursday.

Ship-tracking data from MarineTraffic showed the vessel had been following the southern shipping route proposed by the IMO earlier that day, a corridor that passes closer to Oman’s coastline and has been rejected by Iran.

Singapore’s Maritime and Port Authority (MPA) said the vessel had since completed its transit through the strait and was continuing its voyage, adding that all 21 crew members were safe.

The authority said it was “deeply concerned” by an attack it described as “unprovoked, unjustifiable, and a breach of international law”.

“All actions affecting international shipping must fully comply with international law, in particular the United Nations Convention on the Law of the Sea, and not endanger the safety of seafarers and ships at sea,” the MPA said.

The incident prompted the IMO to suspend its planned evacuation of stranded sailors. Dominguez said the Ever Lovely “did not transit under IMO’s evacuation framework”.

“I have always reiterated that the safety of the seafarers remains paramount. Therefore, to ensure a coordinated approach and navigational safety, the evacuation plan will be paused until further clarity is obtained,” he said.

What has Iran said?

While it remains unclear if the attack was carried out by Iran, the country’s Islamic Revolutionary Guard Corps had criticised the new shipping corridor announced by Oman and the IMO, while also warning that passage through the strait, “is only possible via routes announced by Iran,” the state broadcaster IRIB reported.

Kazem Gharibabadi, Iran’s deputy foreign minister, has said safe passage through the Strait of Hormuz cannot be guaranteed for vessels transiting “with ambiguous arrangements, parallel routes, or decision-making outside of Iran’s considerations as the coastal state”.

“Any credible framework must be based on coordination with Iran and the provisions of paragraph five of the Islamabad Memorandum of Understanding,” he said in a statement on X. “Otherwise, the outcome will be the suspension of the designated parallel route.”

Iran first published its own map of approved navigation routes in April, directing ships to sail much closer to the Iranian coastline than before the conflict.

The IRGC’s latest warning came after a Liberian-flagged oil tanker transited the strait on Thursday using a route closer to Oman’s coast.

On Friday, a further three foreign oil tankers that attempted to cross the Strait of Hormuz “without authorisation” were turned back after a warning from the IRGC, Iranian state TV reported.

Analysts say control over the Strait of Hormuz has long been one of Tehran’s most important sources of strategic leverage, allowing it to exert pressure on the US, whose economy is inextricably tied to global markets.

Why was the evacuation suspended?

Reporting from Tehran, Al Jazeera’s Resul Serdar Atas said the attack appeared to show Iran was prepared to enforce its warnings over navigation through the Strait of Hormuz, after Tehran insisted vessels using either the Iranian or Omani route must coordinate with its authorities.

“Yesterday, Oman announced new routes for the passage of the ships. But then the IRGC released a statement, saying that whether the ships go through the Iranian or Omani territorial waters, they need to be in full coordination with Iranian authorities,” Atas said.

“And if they violate that, then Iran is going to act accordingly. So the question was whether Iran is going to really act or not?

“The answer is yes. Now, we have seen that a tanker has been attacked by some projectiles in the Strait of Hormuz. The Revolutionary Guards did not claim responsibility but did not deny it either.”

Atas added that Gharibabadi, Iran’s deputy foreign minister, had also warned that any shipping arrangements made without taking Iran’s position as a coastal state into account would be unacceptable.

“Perhaps, in the coming days and weeks, we are going to see that the Strait of Hormuz will be one of the main sticking points.”

What other disputes remain?

Under last week’s memorandum of understanding, Iran agreed it would “make arrangements using its best efforts for the safe passage of commercial vessels with no charge, for 60 days only, from the Persian Gulf to the Sea of Oman and vice versa”.

Although the agreement says commercial traffic should resume immediately, it also acknowledges that mines laid during the conflict must first be cleared, stating that “demining by the Islamic Republic of Iran will be instated within 30 days”.

It also provides for discussions between Iran, Oman and other Gulf states over future arrangements for managing navigation through the waterway.

However, the agreement does not specify what will happen after the initial 60-day period.

Last week, Tehran announced it would waive any transit fees during those 60 days while negotiations with the United States continue in Switzerland, raising the possibility that charges could be introduced if no broader agreement is reached.

Iran’s chief negotiator, Mohammad Bagher Ghalibaf, has also suggested Tehran does not intend to return to the pre-war status quo.

“Hormuz will never return” to how it operated before the conflict, he said. The proposal has also faced resistance from the United States and several Gulf states.

Are ships still moving through the strait?

Commercial shipping has gradually resumed, although traffic remains well below normal levels. Before the conflict, between 120 and 140 vessels typically passed through the Strait of Hormuz each day.

According to maritime analytics firm Kpler, 54 verified commercial and energy-related vessels transited the strait on Thursday, down from 70 verified crossings the previous day.

“West-to-East movements dominated, while the Omani Route accounted for the largest share of identified passages. Yet route transparency remains incomplete, with several Dark or Unknown crossings recorded.

“A reported projectile strike on a cargo vessel southeast of Dahit, Oman, adds fresh operational risk, underscoring the gap between improving physical flows and still-fragile maritime security conditions,” Kpler added.

Brent crude rises after cargo ship comes under attack in key waterway.

Oil prices have jumped after the United Nations maritime agency called off its planned evacuation of ships stranded around the Strait of Hormuz following an attack on a cargo vessel in the waterway.

Brent crude, the international benchmark, rose as much as 4 percent on Thursday after the International Maritime Organization paused its evacuation plan amid renewed violence in the strait.

Brent futures for August delivery stood at $74.89 per barrel as of 02:00 GMT, after earlier dropping below $72.48, their closing price the day before the United States and Israel launched their war on Iran.

After dropping sharply following the US and Iran’s signing of a memorandum of understanding on ending the war last week, the price of Brent currently stands at about 3 percent above its pre-war level.

Asian markets opened lower on Friday, with key indices in Japan, South Korea, Hong Kong and Taiwan seeing steep losses.

Tokyo’s Nikkei 225 and Seoul’s Kospi both fell more than 3 percent in morning trading, while the Taiex dropped about 1 percent.

In Hong Kong, the Hang Seng Index was down about 1 percent.

The latest attack in the strait, through which about one-fifth of global oil and liquified natural gas supplies transit in peacetime, dealt a blow to hopes for a return to normal shipping in the region after a recent resurgence in traffic.

On Wednesday, 70 vessels transited the waterway, a more than twofold increase from the previous day and the highest daily figure since March 1, according to ship tracking platforms MarineTraffic and Kpler.

The United Kingdom Maritime Trade Operations (UKMTO) centre said on Thursday that a cargo vessel reported being struck by an “unknown projectile” on its starboard side while attempting to cross the strait near the Omani coast.

Multiple media outlets, including The New York Times, CBS News and the Reuters news agency, cited unnamed US officials as saying the attack had been carried out by Iran.

Iran’s Persian Gulf Strait Authority, which claims the right to regulate shipping in the strait, said after the attack that any vessel attempting to use routes outside its designated “framework” would not be guaranteed safe passage.

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

June Goh, a senior oil market analyst at Sparta in Singapore, said the attack was a reminder to markets of the fragility of peace in the strait amid the tenuous US-Iran ceasefire.

“There is a pressing need for tankers to enter and offload the high crude stocks from onshore tanks in order for normal production to resume again,” Goh told Al Jazeera.

“Thus, security of the passageway is paramount to recover the lost supply.”

The U.N. International Maritime Organization (IMO) paused its plan to evacuate hundreds of ships stuck in the Persian Gulf after a vessel was attacked in the Strait of Hormuz on Thursday. A U.S. official told us the attack was carried out by an Iranian drone, which was confirmed by Iranian officials.

The evacuation plan, which IMO developed with Oman, was designed to provide safe passage to vessels in the Persian Gulf that are still unable to transit the Strait, which has been largely closed since Iran was attacked by the U.S. and Israel. The announcement came as traffic was beginning to move through the Strait again amid ongoing, albeit tense peace talks between the U.S. and Iran. However, these transits represent a tiny fraction of what took place before the war.

The IMO decision today also came after a warning earlier on Thursday by the Islamic Revolutionary Guard Corps Navy (IRGC-N) that safe passage through the Strait was limited to routes designated by Tehran and that other routes were “unacceptable and completely dangerous,” according to The Washington Post. The publication cited Iranian state-run media. The IRGC-N also claimed it turned back several ships trying to transit the Strait through the southern route suggested by IMO. There is also a northern route, near the Iranian coastline while concerns remain about mines in the main route, down the middle of the Strait.

IMO said it is pausing its evacuation plan even though the ship that was attacked was not taking part in that nascent effort.

“Following the launch of the IMO’s evacuation plan, through which several vessels have already been successfully evacuated, I have decided to temporarily pause its implementation in order to reconfirm that the necessary safety guarantees continue to be in place for the ships on our evacuation list and all those in the region,” IMO Secretary-General Mr. Arsenio Dominguez said in a statement. “I have been informed of an attack today in the Gulf of Oman on a vessel which passed through the Strait of Hormuz. This vessel did not transit under IMO’s evacuation framework. I have always reiterated that the safety of the seafarers remains paramount. Therefore, to ensure a coordinated approach and navigational safety, the evacuation plan will be paused until further clarity is obtained.”

“Today marks the Day of the Seafarer, underlining the importance of ensuring that the continued evacuation of the thousands of seafarers stranded in the Persian Gulf can proceed without the risk of them becoming collateral victims in this geopolitical conflict,” Dominguez added.

A maritime security official told us the ship that was attacked was the Ever Lovely, a Singapore-flagged cargo ship, according to MarineTraffic. The incident occurred about 7.5 nautical miles southeast of Dahit, Oman, according to the United Kingdom Maritime Trade Operations (UKMTO) center.

“A cargo vessel has been hit on the starboard side by an unknown projectile, causing damage to the bridge,” UKMTO stated on X. “Master has reported no casualties and no environmental impact. Authorities are investigating. Vessels are advised to transit with caution and report any suspicious activity to UKMTO.”

US Secretary of State Marco Rubio said all Gulf countries oppose a toll in the Strait of Hormuz during a tour of the region following US-Iran talks. Rubio added, “There isn’t a nation on Earth that supports having to pay money to go through the straits”.