U.S. launches strikes against Iran for a third night, while Tehran targets Gulf neighbors

The U.S. launched strikes against Iran for a third consecutive night on President Donald Trump's orders, while Iranian missiles hit two Emirati oil tankers in the Strait of Hormuz and triggered air-raid warnings across the Gulf. U.S. Central Command said the strikes would continue "imposing a heavy cost on Iranian forces" and degrade Tehran's capacity to attack shipping in the Strait of Hormuz. The military action came hours after Trump ordered to reinstate a blockade on Iran in the strait Tuesday at 4 p.m. ET, and floated a 20% toll charge for ships going through the critical energy waterway. Iran retaliated with attacks targeting Gulf countries, including the United Arab Emirates and Bahrain Tuesday morning. The UAE Defense Ministry said Tuesday morning that national tankers Mombasa and AI Bahiyah were targeted by two Iranian cruise missiles in the strait's southern lane, inside Omani territorial waters. The attack killed one Indian crew member aboard the Mombasa, injured eight others and caused "material damage" to both tankers as a result of the fires that broke out on board. The ministry said it would remain "on the highest level of readiness and preparedness to address any threats," and would take all necessary measures to respond to any attempts to undermine the country's security and stability. Bahrain, home to the U.S. Navy's Fifth Fleet, also came under renewed attack, and sounded missile-alert sirens early Tuesday, according to the Associated Press, as Iran retaliated to American strikes. Traffic through Hormuz is slowing again with confirmed crossings declining by around 52% week on week over July 10 to 12, according to Kpler, with traffic reverting to "more defensive routing patterns" — increased use of Iranian and dark routes while shunning Omani and corridors authorized by International Maritime Organization. War risk premiums for Strait of Hormuz are expected to increase sharply as markets react to the escalating tensions, according to Lloyd's List Intelligence, as shipowners and charterers have paused decisions to transit through the waterway. The strikes have unraveled the ceasefire following the interim U.S.-Iran agreement signed last month, aimed at reopening the strait and pausing hostilities for 60 days of negotiations. The escalation in the region pushed Brent crude up 2% to $85 a barrel on Tuesday, while the U.S. West Texas Intermediate rose 2.3% to $80 amid renewed uncertainty over commercial shipping through the Hormuz waterway that carried a fifth of the world's oil and gas before the conflict.