Iran, US trade attacks after month-long lull, raising fears of renewed conflict; oil climbs 2%

Iran and the United States traded attacks for the first time in more than a month, raising fears of a renewed conflict after weeks of relative military calm.

The US military said it carried out a limited strike on Sunday against Iranian forces it accused of preparing to lay mines in the strategically important Strait of Hormuz.

“U.S. forces took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,” US Central Command (CENTCOM) said in a post on X.

The strike targeted two Iranian rocket launchers on Larak Island after US forces observed Iranian personnel preparing to launch rockets carrying mines into the strait, CENTCOM spokesperson Capt Tim Hawkins said.

Iran's Islamic Revolutionary Guard Corps (IRGC) said several soldiers and civilians were killed and wounded in the US attack and warned that it would respond.

The IRGC described the strike as a “strategic and deadly mistake” by the Trump administration and vowed retaliation, according to a statement carried by Iranian state broadcaster IRIB.

The Guards later said they launched missile and drone strikes against two US air bases in Jordan.

Iran's Revolutionary Guards also said they shot down a US MQ-9 Reaper drone over the Strait of Hormuz using air-defence missiles.

The drone crashed into Gulf waters, Iran's Mehr news agency reported, citing an IRGC statement.

Iran's army separately said it attacked the Al Minhad Air Base in the United Arab Emirates with drones early on Monday. The base hosts US forces and helicopters, according to Iranian state television.

The developments mark the first direct exchange of attacks between the two sides in more than a month and threaten to disrupt a period of relative military calm.

US President Donald Trump, in a late-night social media post on Sunday, wrote: “Kharg Island being blown to smithereens!!!” The post was accompanied by an AI-generated video.

There was no immediate indication that Kharg Island, a major Iranian oil export hub located hundreds of kilometres from Larak Island, had come under attack. Iran did not immediately respond to Trump's post.

Iran's state television said a supertanker caught fire and came to a complete halt after being struck by two naval mines in the southern Strait of Hormuz.

The IRGC said the tanker had been attempting to pass through the waterway illegally. It did not identify the vessel or give details about its crew.

The fresh military action pushed oil prices higher on Monday, with Brent crude futures rising more than 2%.

Brent crude futures climbed $2.21, or 2.51%, to $90.31 a barrel as of 0436 GMT, while US West Texas Intermediate crude rose $1.83, or 2.19%, to $85.23 a barrel.