War reignites as United States and Israel carry out fresh strikes on Iran and Lebanon

The United States carried out new strikes on southern Iran on Thursday, after President Donald Trump threatened to “finish the job” if Tehran did not agree to a peace deal.

Iranian media reported three loud explosions rang out in the port city of Bandar Abbas in the early hours of Thursday morning, following US strikes earlier in the week that underscored the fragile state of a diplomatic push to get a provisional peace agreement across the finish line.

“Today, US Central Command Forces shot down four Iranian one-way attack drones that posed a threat around the Strait of Hormuz,” a US official, speaking on condition of anonymity, said in a statement to AFP.

“US forces also struck an Iranian ground control station in Bandar Abbas that was about to launch a fifth drone,” the official said.

Israel’s military also said it had begun striking Hezbollah infrastructure around Tyre on Thursday after issuing an evacuation warning for residents of the southern Lebanese city.

“The IDF is compelled to take forceful action against it,” the Israeli military’s order said, in reference to the Iran-backed group.

Iranian forces fired at four ships attempting to cross the Strait of Hormuz, state broadcaster IRIB reported.

“Four vessels attempted to cross the Strait of Hormuz and enter the Persian Gulf without coordination with the security forces,” the broadcaster said, saying the incident took place at around 12:35am local time but without providing details on the ships.

“They were warned, but after they ignored the warning, warning shots were fired at them, forcing them to return,” it added.

Kuwait’s military also reported it was responding to missile and drone attacks.

“Kuwaiti air defences are currently engaging hostile missile and drone attacks,” the Kuwaiti army posted on X.

Even after earlier strikes on Monday night, Iran said on Wednesday a return to war was unlikely but that its military was nonetheless “lying in wait”.

The mixed signals have thrown into question talks aimed at formally ending the war that began on February 28 with US-Israeli strikes on Iran.

“Iran is very much intent, they want very much to make a deal. So far they haven’t gotten there. We’re not satisfied with it, but we will be,” Trump said at a televised White House cabinet meeting on Wednesday.

“Either that or we’ll have to just finish the job.”

A key focus of the deal has also been restoring full traffic to the Strait of Hormuz, which Tehran has effectively closed, leaving global energy markets grappling with curbed supplies of the huge amounts of oil and gas that normally pass through it.

On another front of the war, in Lebanon, Israel issued fresh evacuation orders to residents of the southern city of Tyre, warning it would take action against Iran-backed Hezbollah after declaring all areas south of the Zahrani River, which lies roughly 40 kilometres (25 miles) from the border, as “combat zones”.

Trump separately also appeared to direct a warning to Oman, a US ally and mediator in the conflict, when asked about a possible short-term arrangement allowing Iran and Oman to control the Strait of Hormuz.

“No, the strait is going to be open to everybody,” Trump said. “It’s international waters and Oman will behave just like everybody else or we’ll have to blow them up. They understand that, they’ll be fine.”

The White House did not immediately clarify whether Trump had misspoken. Oman has played a mediation role in the war and has itself come under attack from Tehran.

Earlier on Wednesday, Iranian Revolutionary Guards official Mohammad Akbarzadeh said the likelihood of “war is low because of the enemy’s weakness”, but warned the military was “lying in wait with full magazines” if attacked, the Tasnim news agency reported.

Trump, who said at the weekend a deal was close, also told the cabinet meeting he was in no rush.

Fresh strikes in Lebanon

Earlier, Israel had warned that residents in the zone around certain buildings should leave and travel north of the Zahrani River, and that remaining in the area “places you at risk”.

“The IDF has begun striking Hezbollah infrastructure in the area of Tyre,” the military posted in a later statement on Telegram.

Lebanon’s state-run National News Agency reported two sets of Israeli strikes had taken place on the city and an area to its east on Thursday morning, hitting a building and sparking a fire in Tyre.

Trading threats

Iran and the United States have traded threats for weeks while negotiating through Pakistani mediation.

Neither side appears ready to compromise on the main sticking points: Hormuz and Iran’s nuclear programme.

On Wednesday, the Guards’ navy said only ships “willing to abide by Iranian order” could pass through Hormuz.

US Secretary of State Marco Rubio said Tuesday that a deal remained within reach, but that the Hormuz would be reopened “one way or the other”.

Iran has also insisted any peace accord must apply to Lebanon, where an April 17 ceasefire has done little to halt fighting between Israel and Hezbollah, which drew the country into the war by attacking Israel in early March in retaliation for the death of Iran’s supreme leader.

Israeli Prime Minister Benjamin Netanyahu vowed Monday to “crush” Hezbollah, while army chief Lieutenant Colonel Eyal Zamir said Wednesday that Israel was “intensifying our operations” against the group.

After the warning to evacuate large areas in southern Lebanon, many residents fled to Tyre, according to AFP journalists -- the city subject to new Israeli evacuation orders on Thursday.

Hormuz sanctions

The US Treasury also announced sanctions against Iran’s Persian Gulf Strait Authority, the agency set up by Tehran to collects fees from ships traveling through the strategic Strait of Hormuz.

“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” Treasury Secretary Scott Bessent said.

The threat of sanctions extended to anyone paying the fees, because they “may be providing support to and receiving services from” Iran’s Revolutionary Guards, and therefore may “be exposed to sanctions risk”.

“Treasury has deprived the Iranian regime of revenue for their weapons programs, terrorist proxies, and nuclear ambitions,” Mr Bessent said.

Mr Bessent said the US has succeeded in disrupting “tens of billions of dollars’ worth of revenue from being accessible” to Tehran.

On May 20, the Persian Gulf Strait Authority issued a map to define its “regulatory jurisdiction,” demarcating red lines on both sides of the Strait of Hormuz that require Iran’s authorisation for passage.

Peace hopes squashed

US and Iranian forces have observed a ceasefire since April 8 while diplomats pushed for a negotiated settlement, but Iran’s controls have tightened on Gulf shipping through the Strait of Hormuz and the US has launched strikes on Iranian targets in recent days.

Iran’s foreign ministry spokesman Esmaeil Baqaei said Monday that Tehran will continue to manage traffic through the strategic Strait fo Hormuz — through which 20 per cent of the world’s oil and natural gas transits — and insisted Iran is collecting fees for “navigational services,” rather than imposing tolls.

The war began after the United States and Israel attacked the Islamic republic on February 28, and saw Iran respond with missile and drone attacks across the region.

Hopes of an imminent deal sent benchmark oil contracts falling more than 5 per cent on Wednesday but they quickly bounced higher after the fresh strikes were reported on Thursday.

Economists have warned that prolonged disruption in the Strait of Hormuz could keep energy prices elevated, feed inflation and force central banks to raise interest rates.