Trump Reinstates Iran Blockade as Gulf Conflict Escalates

President Donald Trump reinstated a full naval blockade of Iranian ports and launched a multi-day bombing campaign against Iran starting July 12, 2026. The escalation followed the collapse of a June 17 memorandum of understanding (MoU) intended to end a war that began in February. U.S. Central Command executed several waves of precision strikes targeting Iranian air defenses, missile sites, and coastal surveillance, including the first combat use of sea drones against the Bandar Abbas Naval Base. Trump initially proposed charging a 20% security fee on all cargo transiting the Strait of Hormuz, but later replaced the toll with proposed trade and investment deals from Gulf states.

Iran responded by declaring the Strait of Hormuz closed and launching retaliatory missile and drone strikes against U.S. military installations in Bahrain, Jordan, Kuwait, Qatar, and Oman. These attacks caused significant damage to infrastructure, including a power and water desalination plant in Kuwait, and resulted in casualties, including the deaths of two U.S. service members at the Al-Azraq Air Base in Jordan. Iranian forces also targeted commercial shipping, striking two UAE-linked tankers, the Mombasa and Al Bahiyah, which killed one Indian sailor.

Supreme Leader Mojtaba Khamenei declared the U.S. a "Great Satan" and voided the MoU, while Iranian officials warned of "crushing strikes" against regional infrastructure if U.S. attacks on power plants and bridges continue. The conflict has severely disrupted global energy flows, driving Brent crude prices above $86 per barrel and causing significant volatility in global equity markets. Despite the violence, Trump has indicated a willingness to resume negotiations, while Iran maintains that the strait will only reopen under Iranian arrangements.