U.S. forces struck an Iranian military site near Bandar Abbas on Thursday that Washington said posed a threat to American troops and to commercial shipping through the Strait of Hormuz, and intercepted several Iranian drones near the waterway. The strikes revived fears of broader supply disruption and put a floor under a multi-day decline in crude prices, even as diplomatic work on a 60-day reopening framework continued in parallel.
Iran’s Islamic Revolutionary Guard Corps said it retaliated by attacking the U.S. airbase from which the Bandar Abbas strikes were launched. “This response is a serious warning to the enemy that any act of aggression will not go unanswered, and if repeated, our response will be even more decisive,” the IRGC said in a statement carried by the state-owned Press TV channel’s Telegram account. The IRGC did not disclose the location of the airbase it said it targeted, and U.S. officials had not confirmed any damage or casualties as of Thursday morning.
The exchanges widened beyond the immediate U.S.-Iran axis. Kuwait’s army said in a post to X on Thursday morning that its air defenses were “responding to hostile missile and drone threats,” a reminder that the conflict’s spillover risk to Gulf states remains live. Iran’s Revolutionary Guard separately said several ships had attempted unauthorized entry into the Persian Gulf, with some forced to turn back, and warned it would respond strongly to any disruption in Hormuz.
Markets read the renewed hostilities as a brake on the deal-optimism that had driven prices sharply lower over the prior week. Brent crude rebounded toward $96–$97 Thursday, recovering from losses in the previous session, while WTI traded around $93. Oil has still fallen more than 10% since May 18, when President Trump said he called off an imminent wave of strikes to allow more time for negotiations. In a note published late Wednesday, Citigroup said oil markets were finding firmer footing as investors increasingly priced out worst-case supply-disruption scenarios.
The strikes do not, by themselves, signal a collapse of the diplomatic track. U.S. officials confirmed the same day that Trump has been briefed on a draft memorandum of understanding that would reopen the strait over 60 days. Secretary of State Marco Rubio said Wednesday that talks had made “some progress,” adding that Trump prefers diplomacy and will give negotiations “every chance to succeed.” The pattern of intermittent kinetic exchanges alongside advancing paperwork has characterized the conflict since the fragile ceasefire took hold April 8.
Bandar Abbas, on Iran’s southern coast at the mouth of the Persian Gulf, is the home port of much of Iran’s navy and a recurring focal point of the Hormuz campaign. The U.S. has said its strikes throughout the conflict have targeted missile launch sites, naval vessels, and mine-laying assets rather than civilian infrastructure. Whether Thursday’s exchange proves a contained flare-up or the start of a more serious re-escalation will likely be clear within days, as negotiators weigh whether the MOU can be finalized despite the renewed friction.
Continuing coverage: Geopolitics · Iran · Strait of Hormuz Explainer.