U.S., Iran have blown past red lines as they lurch back toward all-out war
A week after the United States and Iran signed a preliminary deal aimed at ending the war, an Iranian drone slammed into a cargo ship
A week after the United States and Iran signed a preliminary deal aimed at ending the war, an Iranian drone slammed into a cargo ship sailing through the Strait of Hormuz. There were no casualties or major damage, but the June 25 attack set off a chain of hostilities that would put the two countries on a path back toward all-out war less than a month after they agreed to stop fighting. Also read: West Asia war updates on July 18, 2026 Each strike and counterstrike chipped away at the pillars of the agreement, which has now collapsed, though there are still efforts to salvage it. Red lines set by both sides have been crossed. A return to full-scale war that would further destabilise West Asia and disrupt the world economy appears increasingly likely. Iran attacks ships using a route bypassing its control The attack on the cargo ship came after Iran had warned vessels not to use an alternative route through the Strait of Hormuz that is overseen by the U.S. military and intended to be outside Tehran's control. Iran had largely shut down the waterway — which carried a fifth of the world's traded oil and gas in peacetime — after the surprise U.S.-Israeli attack on Feb 28 that started the war. Tehran has come to see control over the Strait, and its far-reaching economic impact, as a key pressure point in its confrontation with the U.S. The preliminary agreement called for the Strait to be fully reopened, but it also contained language suggesting Iran would manage traffic and potentially charge fees in the future.
Iran has seized on that, saying it has the right to control the Strait and that the alternative route is a violation of the deal. The U.S. and others dispute that, saying the strait should be open to all and toll-free, as it was before the war. U.S. strikes Iran, which retaliates against the Gulf states The U.S. launched strikes on Iran a day after the June 25 attack, hitting what the U.S. military said were missile and drone locations and coastal radar sites. The following day, Iran attacked a tanker using the alternative route through the Strait, and the U.S. responded with more strikes. This time, Iran lashed out at nearby Gulf states, attacking Kuwait and Bahrain, both of which host American troops. The two sides pulled back the following week, each sending delegations to Qatar, which had played a key role in mediating the agreement. But they did not meet directly. Iran reiterated its warning against using the alternative route as it prepared for the days-long funeral of Supreme Leader Ayatollah Ali Khamenei, who was killed in the opening U.S.-Israeli strikes. The funeral began on July 4, with crowds calling for revenge against U.S. President Donald Trump. Fighting resumes after attacks on 3 ships Days later, Iran attacked three ships in the Strait of Hormuz. The U.S. responded with a wave of strikes that it said targeted air defence systems, radars and over 60 small boats used by Iran's paramilitary Revolutionary Guard.