The US launched new strikes on southern Iran, prompting Tehran to retaliate by attacking American facilities in Bahrain, Kuwait, and Jordan. Additionally, a tanker was struck in the Strait of Hormuz. American forces conducted nighttime bombings following President Donald Trump‘s warning that Tehran “will pay dearly” for the deaths of American military personnel.
This exchange of strikes occurred a day after the Iranian-backed Yemeni Houthis announced plans to impose a naval blockade on Saudi Arabia. This development could open a new front in the conflict and heighten risks to global energy supplies and international trade beyond the Persian Gulf. Despite the escalating tensions, which nearly undermined the temporary ceasefire established in June, signals of potential diplomatic engagement between Tehran and Washington helped to temper rising oil prices.
US Attacks and Iran’s Response
The US Central Command (CENTCOM) reported the completion of a new round of strikes on Iran, targeting military command centers, naval facilities, missile and drone launchers, and air defense systems. Iranian state media indicated that explosions were heard near the city of Shiraz and in the areas of Konarak and Chabahar along the southern coast.
In retaliation, Iran resumed attacks across the Persian Gulf, where previous strikes on desalination plants had already raised concerns about potential water shortages and increased threats to civilian infrastructure. The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for attacking infrastructure in Bahrain belonging to the American company Amazon, describing it as a response to the US strike on the site of the future Iranian nuclear power plant Darkhovin. Iranian state media also reported an attack on residential quarters used by American military personnel at Sheikh Isa Air Base in Bahrain. The US military, Bahraini authorities, and Amazon did not immediately respond to requests for comment. Reuters noted it could not independently verify these reports.
The Iranian army also stated that on July 21, it conducted drone attacks on three American military bases in Kuwait. The IRGC reported a strike on a US military facility in Jordan, while Jordanian authorities confirmed that their forces intercepted and destroyed five Iranian drones.
Strikes on Tankers and Threats to Energy Supplies
The British Agency for Maritime Trade Operations reported that on July 21, a tanker in the Strait of Hormuz was struck by an unknown projectile, prompting the crew to abandon the vessel in a lifeboat. On the same day, the IRGC reported that two oil tankers caught fire following explosions while attempting to navigate the southern route of the Strait of Hormuz. The exact timing of these incidents has not yet been clarified.
Reports indicate that Iran has urged the Houthis to block the Bab el-Mandeb Strait — the primary exit to the Red Sea — should US attacks on Iranian energy infrastructure continue. Such a blockade could threaten two of the world’s most vital energy transport routes. A complete closure of Bab el-Mandeb could reduce global oil supplies by approximately 7%, while the ongoing conflict in the Persian Gulf has already led to a roughly 10% decrease in supplies.
Following the Houthis’ announcement about the naval blockade, the coalition led by Saudi Arabia reported implementing additional security measures for its vessels transiting through Bab el-Mandeb. Meanwhile, oil markets assessed the risks to shipping alongside reports of diplomatic efforts to prevent further escalation, resulting in a slight decline in Brent crude oil prices at the start of trading.
Source: The Straits Times
