US Central Command launched "powerful" strikes on more than 80 Iranian targets — air defence systems, coastal radar, and fast boats — after three oil tankers were hit in the Strait of Hormuz. Iran retaliated Wednesday with missiles and drones aimed at 85 US military facilities in Bahrain and Kuwait, killing one Revolutionary Guardsman. The exchange marks the worst direct fighting since a June interim deal.

Brent crude jumped 3% to $76 a barrel as markets priced in supply disruption risk. NATO Secretary General Mark Rutte called the US action "absolutely necessary," arguing Iran violated the ceasefire by attacking commercial shipping. Qatar and Saudi Arabia both blamed Tehran for strikes on their flagged tankers, while Iran denied responsibility and warned vessels not coordinating with its new "Persian Gulf Strait Authority" face collision risks.

Washington simultaneously revoked a sanctions waiver on Iranian oil sales that had been part of the 14-point memorandum of understanding signed last month. Tehran denounced the move as a breach of the MoU and vowed "decisive measures." Diplomatic talks remain paused during funeral rites for Supreme Leader Ayatollah Ali Khamenei, killed in earlier US-Israeli strikes.

The Strait of Hormuz — transit point for roughly 20% of global oil — now sits at the centre of a sovereignty dispute. Iran insists any permanent deal must grant it management authority alongside Oman, including potential "service fees" for passage. Until that framework is resolved, each tanker transit carries escalation risk, keeping a war premium embedded in crude prices.