US Strikes Iran Over Troop Deaths as Interim Deal Collapses
The United States launched airstrikes against Iranian military targets on Sunday in retaliation for an attack in Jordan that killed two American service members and left one missing, further widening a conflict that has now drawn in multiple regional actors and disrupted global oil markets. The strikes, part of an eighth consecutive night of US-Iran exchanges, come as a fragile interim peace deal signed just over a month ago has effectively collapsed, with both sides accusing each other of violations.
Background: A War That Began in February
The 2026 Iran war began on February 28 when the United States and Israel launched coordinated airstrikes on Iranian targets, codenamed Operation Epic Fury and Operation Roaring Lion, respectively. The strikes killed several senior Iranian officials, including Supreme Leader Ali Khamenei. Since then, the conflict has escalated into a sustained campaign involving drone strikes, ballistic missile attacks, and naval confrontations across the Middle East.
After months of fighting, the US and Iran signed the Islamabad Memorandum of Understanding on June 17, a 60-day interim agreement designed to halt military operations, reopen the Strait of Hormuz, and provide a framework for permanent peace negotiations. However, the deal began unraveling almost immediately. A ceasefire agreed on June 28 collapsed by July 8 after both sides accused each other of violations, and the US reinstated a naval blockade on Iranian ports on July 14.
Latest Escalation: Troop Deaths and Retaliation
The latest cycle of violence began on July 17, when Iran launched ballistic missile and drone attacks targeting US forces in Jordan. Two American service members were killed, one remains missing, and four others required hospitalization. According to AP News, the attack brought the total number of US service members killed in the war to 16, with over 430 wounded.
President Donald Trump ordered retaliatory strikes, which began at approximately 6:00 PM ET on Saturday. US Central Command (CENTCOM) said the strikes targeted “Iranian military coastal surveillance and air defense facilities, maritime capabilities, and missile and drone storage sites” with the stated objectives of degrading Iran’s ability to threaten commercial shipping in the Strait of Hormuz and swiftly punishing Islamic Revolutionary Guard Corps forces.
On Sunday, the US launched further airstrikes targeting Iran’s paramilitary Revolutionary Guard. Iran responded by firing missiles toward Jordan, prompting Kuwait, Jordan, and Bahrain to activate air defenses. Israel warned that missiles launched toward Jordan could spill over into Israeli territory for the first time in weeks.
The Nuclear Dimension
Iran’s atomic energy agency reported that US strikes hit the construction site of a planned nuclear power plant at Darkhovin in the southwest. The International Atomic Energy Agency confirmed the site was in “very early stages of construction” with no nuclear material present when inspectors last visited. While the strike does not involve radioactive material, it introduces a new dimension to the conflict by targeting Iran’s nuclear infrastructure.
Regional Fallout
The conflict is increasingly drawing in neighboring states. Kuwait reported that a power and water desalination plant was attacked for the second time in two days, threatening a facility that provides approximately 90% of the country’s drinking water. The secretary-general of the six-nation Gulf Cooperation Council, Jasem Mohamed al-Budaiwi, accused Iran of war crimes for strikes on civilian infrastructure.
Jordan’s military said it shot down several Iranian missiles, reporting no casualties or damage. However, the country hosts major US bases and relies on American air-defense systems, placing it directly in the crossfire.
The Strait of Hormuz Crisis
Control of the Strait of Hormuz — through which one-fifth of global oil supplies transited before the war — remains the central strategic prize. Iran blocked the strait in late March 2026, and current traffic has plummeted from a daily average of approximately 140 transits to just 3-8 per day. The US has been conducting a sustained campaign to degrade Iran’s ability to control the waterway.
The economic impact is severe. Brent crude rose 4.6% to $88.10 per barrel on Friday, while West Texas Intermediate gained 4.5% to $82.49. Both benchmarks gained approximately 16% for the week. The US national average for gas has climbed above $3.99 per gallon, up from $3.87 a week ago, according to CNBC.
Energy Secretary Chris Wright sought to allay concerns, stating on ABC News’ “This Week” that bypass pipelines could compensate for reduced strait traffic. However, research firm Kpler reported that crossings had decreased to just eight vessels on Thursday.
Diplomacy in Ruins
Iran’s Deputy Foreign Minister Kazem Gharibabadi announced that Tehran was suspending its commitments to the Islamabad Memorandum, accusing the US of violating the agreement. When asked about Iran’s announcement, Trump told a NewsNation reporter, “I couldn’t care less,” according to CNBC.
Supreme Leader Mojtaba Khamenei warned that the Iranian nation and the Resistance Front have “unforgettable lessons” in store for the United States, adding that Trump’s signature on the memorandum was “utterly worthless and devoid of credibility.”
What to Watch For
With the halfway point of the 60-day interim deal now passed and both sides abandoning their commitments, the prospects for de-escalation appear dim. Several factors could drive further escalation: the unresolved status of the missing US service member, Trump’s threats to target Iran’s power stations and bridges, the potential for direct Israeli involvement as Iranian missiles land near its border, and the continued strangulation of global oil supplies through the Strait of Hormuz.
Since the war began, 16 US service members have been killed and over 430 wounded. Iranian authorities reported at least 50 people killed and 517 wounded in the latest US strikes alone. Overall Iranian casualties, per the Human Rights Activists News Agency, stand at 3,684 killed, including both military personnel and civilians. The war’s effects on fuel and goods prices continue to hit some of the world’s most vulnerable areas hardest, and with no diplomatic solution in sight, the conflict shows no signs of abating.