The conflict has shifted toward a brutal battle for control over the Strait of Hormuz, a critical energy chokepoint through which a fifth of the world’s traded oil and gas typically passes. While U.S. Central Command maintains the strikes are intended to further degrade Iran’s ability to threaten civilian mariners, the escalation is causing immediate economic ripples, pushing benchmark Brent crude oil above $93 a barrel.
Trump’s Infrastructure Doctrine and U.S. Strike Targets
According to nbcnews.com, the U.S. hit approximately 90 Iranian military targets, including coastal surveillance assets, missile and drone storage sites, and naval capabilities. Earlier in the week, CNBC reported that U.S. forces hit over 80 targets, including more than 60 Islamic Revolutionary Guard Corps (IRGC) small boats.
Reports from timesnownews.com indicate explosions in Bushehr, Tabriz, and the southeastern port cities of Konarak and Chabahar. While a local official claimed an airstrike hit the perimeter of the Bushehr nuclear power plant, a U.S. official denied targeting the facility.
Iranian Retaliation and Regional Escalation
Tehran has responded with an eye for an eye
defense doctrine, as stated by Foreign Minister Seyed Abbas Araghchi. This response has not been limited to U.S. assets but has targeted U.S. allies across the Middle East, sparking alerts in Qatar, Bahrain, Kuwait, and Jordan.
The Iranian Health Ministry reported on Thursday that 14 people were killed and 78 wounded during the two days of U.S. attacks.
- Logistics: The Iranian Foreign Ministry denounced the bombing of two railway bridges on the route to Mashhad, where officials plan to bury the country’s slain Supreme Leader Ayatollah Ali Khamenei on Thursday.
- Regional Allies: Jordan reported shooting down eight Iranian missiles on Thursday morning, while the IRGC claimed to have fired 10 ballistic missiles at a U.S. command center and air base in Jordan.
The Collapse of the June Memorandum of Understanding
That memorandum of understanding (MOU) was intended to end the war—which began on February 28 when the U.S. and Israel began strikes on the country that killed its leader, Ayatollah Ali Khamenei—and reopen the Strait of Hormuz.
Iran’s parliament speaker, Mohammad Bagher Qalibaf, has accused Washington of major violations of the MOU
. He asserted that the era of bullying and extortion is over
and insisted that the strait would not return to prewar conditions.
Negotiations were paused this week for the funeral events of Khamenei.
Economic Stakes and the $37.5 Billion War Cost
Defense Secretary Pete Hegseth estimated in a Senate hearing that the U.S. has spent $37.5 billion on the war so far.
| Period | Brent Crude Price (per barrel) |
|---|---|
| Early July 2026 | Less than $72 |
| July 22, 2026 | More than $93 |
This price surge is exacerbated by Iran’s claim that it now has the right to manage and potentially charge fees for traffic in the strait, a departure from the toll-free status the waterway held before the war.
For now, the focus remains on the burial ceremony of Ayatollah Ali Khamenei in Mashhad on Thursday, a moment of high tension that has already seen the targeting of critical transport links.
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