US President Donald Trump has threatened to escalate attacks on Iran after the two countries traded fire for the first time in weeks, raising fears of a return to major hostilities in the six-month-old war.
"We're going to hit them hard," Trump said, according to a Fox News reporter who spoke to him briefly. "There will be a response."
His comments came after the US carried out strikes on an Iranian island in the Strait of Hormuz on Sunday, with Iran quickly retaliating by attacking US military targets in the Middle East.
US strikes on Larak Island
The United States said it attacked Iranian rocket launchers on the island of Larak to prevent Tehran planting mines in the key shipping lane. US Central Command said in a social media post that it took "limited" action against Iranian forces that were observed "preparing to launch rockets with sea mines" into the strait.
State media reported that three people were killed in the US attack on Larak, with several others wounded.
Iran's response
Iran responded with missile and drone attacks aimed at Jordan and the United Arab Emirates, saying they targeted US forces there. Iran's powerful Revolutionary Guards force said the ballistic missile attack targeting two US air bases in Jordan caused "heavy damage".
Trump told Fox that all the missiles fired at US forces had been shot down, except for one that was determined not to pose a threat. Jordan's Army said it had intercepted eight missiles, without stating their origin.
Iran also said it targeted US personnel at an air base in the UAE and shot down an American drone over Hormuz. Abu Dhabi said it intercepted a drone over the country's waters but dismissed claims that Al Minhad Air Base had been targeted as "baseless".
The Guards reported knocking out a second US drone over the Hormuz, and Iran's armed forces central command reiterated a warning to its regional neighbours not to allow the US to use their territory to carry out attacks.
Calls for dialogue
Despite the escalation, President Masoud Pezeshkian called for dialogue, saying at a summit in Kyrgyzstan: "We continue to strive for a path of agreement and understanding, and we believe that continuing the war is neither in our interest, nor in the interest of the region." He added that "the solution to the existing problems is dialogue and cooperation."
Foreign Minister Abbas Araghchi told state TV that "the solution is completely clear and straightforward: the United States must return to its commitments."
Economic pressure and global impact
The exchange of fire came after weeks of relative calm, with the Trump administration recently pivoting to "economic warfare". US Treasury Secretary Scott Bessent vowed to keep up the economic pressure, telling reporters at a G20 meeting: "We are going to continue exerting pressure, and we've had very good discussions here already."
Iran is exerting economic pressure of its own through its blockade on the Strait of Hormuz, which has roiled global markets and driven up prices for American voters in a closely fought midterm election year. One-fifth of the world's oil passed through the strait before the war, which was triggered by a surprise wave of US and Israeli strikes on Iran on February 28.
The Revolutionary Guards said that a "rogue" oil tanker caught fire near the strait after it hit two mines while attempting to transit an "illegal route". The US military called the claim "disinformation", saying: "No ships have hit mines in the Strait of Hormuz."
Trump has claimed the US navy has "total control" of the strait, but global oil prices were on the rise, with Brent crude oil rising by 3% on Monday morning to $91 per barrel. About 15 ships per day have traveled through the strait over the past week.
A spokesman for United Nations chief Antonio Guterres called the latest exchange of fire "very regrettable" after weeks of calm and urged a return to diplomacy.