The fragile ceasefire between the United States and Iran has come under renewed strain after both sides exchanged fresh military strikes, raising fears that recent diplomatic progress could collapse.

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Iran launched drones and missiles at Bahrain and Kuwait on Sunday following new US strikes on military facilities in southern Iran. Tehran warned it could suspend negotiations aimed at ending the conflict, while US President Donald Trump threatened overwhelming military action if talks failed.

Writing on social media, Trump said the United States could soon abandon negotiations and "militarily finish the job", adding that, if forced to do so, "the Islamic Republic of Iran will no longer exist."

Attacks Spread Across Gulf Region

Kuwait said its air defences intercepted two ballistic missiles and reported no casualties or damage. Bahrain said an Iranian strike damaged a residential building near its international airport, although no deaths were reported.

Qatar said one of its citizens was killed and another injured by shrapnel while aboard a boat that had gone missing the previous day. Authorities did not specify where the incident occurred or whether it was directly linked to the Iranian attacks.

Strait of Hormuz Dispute Drives Tensions

The latest escalation centres on competing plans to reopen the Strait of Hormuz, one of the world's most strategically important shipping routes, without Iran maintaining direct control.

Before the conflict, roughly one-fifth of global oil and liquefied natural gas supplies passed through the waterway.

The US military said its latest strikes targeted Iranian surveillance systems, communications infrastructure, air defence positions, drone storage facilities and mine-laying sites. US Central Command said the operation was a response to continued Iranian attacks on commercial shipping.

Washington has promoted a southern shipping corridor along Oman's coastline, while Tehran insists vessels should instead transit through northern waters under Iranian oversight, where it ultimately hopes to impose transit fees.

Hundreds of commercial vessels have remained stranded since the strait was closed after fighting began. Although some ships have resumed using the route in recent weeks, helping oil prices fall closer to pre-war levels, attacks on commercial shipping have continued.

The US accused Iran of attacking the Panama-flagged oil tanker Kiku on Saturday while it was using the southern corridor. A Singapore-flagged container ship was also reportedly hit by an Iranian drone last week while following the same route.

Diplomacy Faces Mounting Pressure

Iranian Foreign Minister Abbas Araghchi reiterated Tehran's claim that only Iran should oversee navigation through the Strait of Hormuz during a visit to Iraq.

He warned that any attempt to establish alternative arrangements would complicate efforts to reopen the waterway and further increase regional tensions. Araghchi also called for a regional security framework involving Gulf states but excluding the United States.

Qatar and Pakistan have been mediating negotiations between Washington and Tehran after helping bring both sides together in Switzerland earlier this month. However, major disagreements remain over the future of the strait, sanctions relief and Iran's nuclear programme.

Under an interim memorandum signed earlier this month, both countries have 60 days to negotiate a permanent agreement.

Iran's Islamic Revolutionary Guard Corps claimed responsibility for Sunday's attacks and warned that any ceasefire violations would halt the diplomatic process. It also threatened US military bases across the region.

Fighting Continues in Lebanon

The renewed violence has also spread beyond the Gulf, threatening efforts to stabilise neighbouring Lebanon.

Israel said one of its soldiers was killed during an encounter with a Hezbollah fighter in southern Lebanon. Lebanese state media also reported fresh Israeli strikes near the towns of Deir Seryan and Taybeh.

The clashes came just two days after Israel and Lebanon reached an agreement intended to reduce hostilities, including the phased withdrawal of Israeli forces from southern Lebanon and their replacement by the Lebanese army.

The continued fighting further complicates efforts to secure a lasting agreement between Washington and Tehran, with Iran maintaining that any broader peace depends on a sustained ceasefire in Lebanon.

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Adapted by ASEAN Now. Source 29 June 2026

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So Iran said ships need approval to transit along certain routes and then some ships are struck.

I don't understand. Iran has made it clear to fund and refill finances they are going to place a Toll on the Strait of Hormuz. The agreement allowed for 60 days of transit but I believe there were expectations that still needed to be met.

If anyone believes that Iran is Not going to place tolls on ships transiting the Strait then they are delusional.

I'm not in anyway agreeing with Iran, just making it clear that their behavior is speaking clearly on what Iran's future intentions are

26 minutes ago, J Branche said:

what Iran's future intentions are

And sadly what the US intentions are irrespective of any MOU cease fire.

Iran’s Islamic Revolutionary Guard Corps (IRGC) asserts that only Iranian-approved northern routes are permitted and treats other paths as prohibited. Such provision allows Iran to collect fees for "free" (as in being attacked) passage.

BUT the U.S. had permitted passage on the southern routes closer to the Omani coastline bypassing Iranian permission and fees. The MOU did not provide for avoiding the Iranian northern passage and option to use the southern passage that the US consequently gave permission.

As the US violated the MOU, Iran attacked ships that tried to use the southern passage in retribution, for which the US retaliated by attacking Iran again.

The US has consistently agreed to MOU, Ceasefire, etc. negotiated terms with intention then to ignore such terms as in Trump's policy that Iran as it currently exists as a sovereign state must cease to exist.

29 minutes ago, J Branche said:

So Iran said ships need approval to transit along certain routes and then some ships are struck.

I don't understand. Iran has made it clear to fund and refill finances they are going to place a Toll on the Strait of Hormuz. The agreement allowed for 60 days of transit but I believe there were expectations that still needed to be met.

If anyone believes that Iran is Not going to place tolls on ships transiting the Strait then they are delusional.

I'm not in anyway agreeing with Iran, just making it clear that their behavior is speaking clearly on what Iran's future intentions are

Iran has announced their intention to introduce a maritime fee not toll. Iran will coordinate with Oman to finalize a traffic managament framework and fees for navigation, escort service, environmental and security clearance. It will generate $40B annually from global shipping traffic.

US say they have agreed with Iran to stand down for now. I suspect Iran has a different take.

https://www.bbc.co.uk/news/articles/c872rjw17qpo

Its Monday morning and the markets open soon.

Since all Trump really knows is death, destruction, mayhem, chaos and instability this eventuality was very likely.

Add to that the fact that he's one of the world's worst negotiators and you have nothing but chaos.