Main developments
The US and Iran exchanged fire in the Strait of Hormuz on Thursday in an escalation that put a fragile ceasefire between the warring nations under new strain.
US President Donald Trump said his country’s military had struck Iran in response to an attack on American warships exiting the Strait of Hormuz — and warned of a new more violent response. But he later described the attack on Iran as a “love tap” and a “trifle”, adding that the ceasefire was still “in effect”.
The new escalation, after a month-long ceasefire in the war between the two nations, sent oil prices higher as traders parsed the risk that a new phase of hostilities could be imminent.
US Central Command, which oversees Washington’s military operations in the Middle East, said the strikes on Thursday were an act of “self defence” following “unprovoked Iranian attacks” on US forces.
The Pentagon said Iran launched missiles, drones and small boats at three American destroyers that were transiting the strait into the Gulf of Oman on Thursday. Trump later said a trio of destroyers had successfully transited the waterway.
“There was no damage done to the three destroyers, but great damage done to the Iranian attackers. They were completely destroyed along with numerous small boats,” he said.
He added that attacks by Iranian drones had been thwarted, claiming they “dropped ever so beautifully down to the ocean, very much like a butterfly dropping to its grave”.
Tehran’s Khatam al-Anbiya Central Headquarters said the US air strikes had targeted parts of Iran’s coast, including Bandar Khamir, Sirik and Qeshm Island, and had happened “with the co-operation of some regional countries”. Iranian forces responded by attacking US warships.
Brent crude was up 3.3 per cent at $103.37 per barrel in after-hours trading. West Texas Intermediate, the US marker, was up 2.5 per cent at $97.18.
The attacks on Thursday followed clashes earlier in the week after Trump launched what he called a “humanitarian” operation to “guide” merchant vessels through the strait, which Iran had in effect closed during the two-month war.
Tehran targeted US assets and launched more than a dozen missiles and drones at the United Arab Emirates, setting an oil facility in Fujairah ablaze.
Trump on Tuesday said he was pausing the operation, known as Project Freedom, claiming it would allow more space for negotiations with Tehran. His decision came after Saudi Arabia refused to allow the US to use its bases and airspace.
Iran this week said it was studying a US proposal to end the war, reopen the strait and reach a deal over the Islamic republic’s nuclear programme in return for sanctions relief and the unfreezing of some overseas assets.
Trump on Wednesday suggested the US military campaign would end soon and the strait would be “open to all”. But there are significant gaps between the parties.
The president on Thursday said a deal “could happen any day” but warned Tehran that: “If it doesn’t get signed, they’re going to have a lot of pain.”
About a fifth of the world’s oil and liquefied natural gas normally passes through the Strait of Hormuz. The US has also imposed its own blockade of the strait to prevent Iranian vessels exiting it.
Trump threatens Iran with ‘a lot of pain’ if Tehran rejects deal
US President Donald Trump threatened Iran with “a lot of pain” if Tehran does not make a deal with Washington.
Trump said the US and Iran were still negotiating, but that it was not clear if the warring countries would reach a deal.
“We’re negotiating with the Iranians,” Trump said on Thursday. A deal “might not happen, but it could happen any day”.
“They better sign their agreement fast,” he said. “If it doesn’t get signed, they’re going to have a lot of pain.”
His comments came after American forces struck targets in southern Iran in retaliation for attacks on US naval ships in the Strait of Hormuz.
Trump described the exchange of fire as a “trifle”: “They trifled with us today. We blew them away. They trifled. I call that a trifle.”
The US president said that he would not have to announce any end to the ceasefire because “you’re going to have to look at one big glow coming out of Iran”.
Trump says US-Iran ceasefire remains intact
US President Donald Trump has said the ceasefire between Washington and Tehran remains intact, following an exchange of fire between American and Iranian forces in the Strait of Hormuz.
The American strikes on military facilities in southern Iran — which the US military said were in retaliation for unprovoked Iranian attacks on three warships — were “just a love tap”, Trump told ABC News.
“The ceasefire is going. It’s in effect,” he added.