Key facts
- President Donald Trump declared the interim agreement with Iran over.
- The U.S. military conducted strikes on over 80 sites in Iran.
- Strikes targeted air defense systems and IRGC boats.
- The U.S. revoked Iran's oil export license, effective July 7, 2026.
- Iran vowed a 'crushing response' to U.S. actions.
- Iran threatened to close the Strait of Hormuz.
- Oil prices surged following the U.S. revocation of the oil sanctions waiver.
- U.S. crude oil closed up 5.5% at $92.16 per barrel.
- Brent crude oil rose 4.5% to $94.98.
- The UK's FTSE 100 index tumbled.
- Pakistan urged Iran and the U.S. to uphold commitments under a regional MoU.
President Donald Trump announced that an interim agreement with Iran to end hostilities is "over," citing renewed fighting and Iran's attacks on commercial vessels in the Strait of Hormuz. The U.S. military conducted retaliatory strikes, with U.S. Central Command reporting strikes on over 80 sites in Iran, including air defense systems and IRGC boats. These actions followed Iran's alleged attacks on three vessels in the Strait of Hormuz, which violated a fragile cease-fire agreement.
In response to the U.S. strikes, Iran vowed a "crushing response" and called the actions a "blatant act of aggression." Iranian state media also reported a halt in U.S. talks and threats to close the Strait of Hormuz. The U.S. Treasury revoked a sanctions waiver on Iranian oil sales, effective July 7, 2026, a move that could leave millions of barrels of crude oil at sea and requires companies to wind down transactions within 10 days. Iran has prioritized control of the Strait of Hormuz over its nuclear program amid these escalating tensions.
The collapse of the memorandum of understanding between the U.S. and Iran has cast doubt on peace talks. Iran launched strikes on U.S. targets in Kuwait and Bahrain in retaliation for U.S. strikes on commercial ships. President Trump also warned of further strikes against Iran, potentially occurring Wednesday night, and threatened to seize Kharg Island, further escalating tensions in the Middle East.
Global markets reacted sharply to the developments. Oil prices climbed sharply, with U.S. crude closing up 5.5% at $92.16 per barrel and Brent crude rising 4.5% to $94.98. Oil prices surged over 5 percent following the U.S. revocation of the oil sanctions waiver. The UK's FTSE 100 index tumbled as investors moved away from equities. Pakistan's foreign ministry urged both Iran and the U.S. to uphold their commitments under the Islamabad Memorandum of Understanding, a deal aimed at halting conflict and opening the Strait of Hormuz.