The United States and Iran have escalated their military confrontation for a second day, with Washington launching precision strikes on Iranian military targets and Tehran retaliating against US bases in the Gulf. The renewed hostilities come as negotiations to end the three-month war appear to have stalled, with both sides trading accusations of bad faith.
US Central Command (CENTCOM) confirmed it had struck Iranian surveillance, communication, and air defence sites in the south of the country, near the strategic Strait of Hormuz. Explosions were reported in Bandar Abbas, Qeshm, Minab, Kargan, and Sirik. CENTCOM stated that the strikes targeted capabilities that posed a threat to US forces and international commercial shipping in the region.
Iran responded by targeting US bases in Bahrain and Kuwait. Bahrain's interior ministry issued an air raid alert, urging residents to seek shelter. Kuwait temporarily closed its airspace as its military intercepted what it described as hostile aerial targets. Iranian media reported drone strikes against communications antennas and radar facilities belonging to the US Fifth Fleet in Bahrain.
Strait of Hormuz: A Chokepoint Under Pressure
The Iranian navy announced it had struck two vessels attempting to transit the Strait of Hormuz, declaring the waterway completely closed and warning that any vessel traffic would be targeted. CENTCOM denied the closure, insisting that commercial ships continued to pass through the strait. The head of the Iranian Guards' aerospace force, Majid Mousavi, warned in a social media post: "Are you making the sacred Strait of Hormuz unsafe?! We will make the region hell for you."
The standoff has sent global oil prices soaring. The international benchmark for crude oil traded above $93 a barrel on Wednesday, a rise of more than 25% since the conflict began. This has direct implications for European economies, which rely heavily on energy imports from the Gulf region. The disruption adds to existing pressures on supply chains and inflation, compounding the effects of the ongoing war in Ukraine and the recent 30% plunge in EU-US trade.
US President Donald Trump, who had repeatedly suggested that a deal with Tehran was imminent, accused Iran of stalling. "We were really close to a deal, but they keep tapping us along," Trump told reporters on Wednesday. He claimed that the US military had secretly facilitated the passage of 100 million barrels of oil through the strait. Secretary of Defence Pete Hegseth warned that if Trump required it, "we'll negotiate with bombs, and we're very good at it."
The European Union has been watching the escalation with growing concern. Brussels has called for restraint and a return to diplomacy, but its leverage remains limited. The bloc's foreign policy chief has urged both sides to de-escalate, warning that a full-scale war in the Gulf would have catastrophic consequences for global energy markets and security. The EU has also been working to diversify its energy sources, including through new partnerships such as the digital trade pact with South Korea, but the immediate impact of the Hormuz crisis is unavoidable.
European capitals, particularly those in southern Europe like Rome, Madrid, and Athens, are acutely sensitive to the volatility in oil prices. The closure of the Strait of Hormuz would cut off a vital artery for crude shipments, forcing European refineries to seek alternative supplies at higher costs. This could further strain economies already grappling with the aftermath of the pandemic and the energy crisis triggered by Russia's invasion of Ukraine.
The situation also raises questions about the security of European naval forces in the region. Several EU member states, including France, Italy, and the Netherlands, maintain a naval presence in the Gulf as part of international maritime security missions. Any escalation could put European personnel at risk and complicate the bloc's broader foreign policy objectives in the Middle East.
As the strikes continue, the prospect of a negotiated settlement appears increasingly remote. Iran insists on maintaining its control over the Strait of Hormuz as a bargaining chip, while the US demands an end to what it sees as Iranian obstructionism. The coming days will be critical in determining whether the conflict spirals into a full-scale war or whether diplomatic channels can be revived.
