US-Iran Strikes Escalate, Threatening Fragile Peace Agreement
US-Iran Strikes Escalate, Threatening Peace Deal

Iran launched drone and missile attacks on Bahrain and Kuwait on Sunday, responding to new US strikes on sites in southern Iran. This escalation further undermines the fragile interim peace agreement between the two countries and prompted US President Donald Trump to threaten that Iran 'will no longer exist.'

Retaliatory Strikes and Regional Impact

Tehran's attacks targeted Bahrain and Kuwait after US strikes on Iranian military facilities. Trump posted on social media: 'If that happens, the Islamic Republic of Iran will no longer exist!' Kuwait reported intercepting two ballistic missiles with no injuries or damage, while Bahrain's interior ministry said Iranian strikes damaged a residential building near the international airport, but no one was killed.

Qatar's interior ministry reported one Qatari national killed and another injured by shrapnel from 'military operations in the area.' The two were on a boat that went missing Saturday and was located early Sunday. The ministry did not specify the location or confirm if the shrapnel was linked to Iranian drone attacks.

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Strait of Hormuz Tensions

The latest violence stems from efforts to reopen the Strait of Hormuz to all shipping without Iran's direct oversight. The strategically critical waterway, which carried a fifth of the world's oil and liquid gas before the war, is considered an international passageway. US Central Command said its strikes responded to 'continued Iranian aggression against commercial shipping' and targeted Iranian military surveillance, communications, air defence, drone storage, and mine-laying facilities.

Washington promotes a southern lane along Oman's coast, while Tehran wants ships to use a northern route through its waters under its control. Hundreds of vessels, including oil tankers, remain blockaded inside the Gulf since war broke out. Some have recently chanced the passage, lowering oil prices to near prewar levels.

The US military accused Iran of violating the ceasefire on Saturday by attacking the Panama-flagged tanker Kiku, carrying crude oil for Qatar's state-run energy company. Ship-tracking websites suggest the Kiku attempted to use the southern corridor near Oman. A Singapore-flagged container ship was also struck by an Iranian drone while transiting the same route last week.

Iran's Stance and Regional Dynamics

Iranian Foreign Minister Abbas Araghchi reiterated Tehran's claim to sole control of the waterway during a state visit to Iraq on Sunday. He stated in Baghdad: 'Any interference in this matter, any attempt to establish new or separate arrangements from those currently being carried out by the Islamic Republic of Iran, will only lead to further complications, delay the reopening of the Strait of Hormuz, and increase the level of tension.'

Observers note Iran uses its ability to threaten shipping as leverage in negotiations with the US and to intimidate neighbouring countries. Araghchi called for a security framework with Gulf countries excluding the US, saying: 'We should reach a new framework that includes all countries in the region and without the presence or interference of any country from outside the region.'

Peace Negotiations Under Strain

Mediators from Qatar and Pakistan brought US and Iranian representatives together in Switzerland earlier this month but failed to bridge gaps on the Strait of Hormuz, sanctions relief, and Iran's nuclear programme. A memorandum of understanding signed earlier this month gives the two countries 60 days to work out details before signing a final agreement.

Leaders in Tehran and Washington face domestic pressures to avoid conflict and appear committed to a ceasefire, despite bellicose rhetoric. The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for Sunday's attacks, stating: 'Let the enemy know that violating the ceasefire … will lead to a complete halt of ongoing processes.' The IRGC, which controls Iran's ballistic missile arsenal, has gained influence recently. Its navy command said American bases in the region would 'experience hell in the coming days.'

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Bahrain's foreign ministry denounced the attacks as 'a dangerous escalation that reveals that what Tehran is doing is not a passing act, nor an isolated incident, but rather a deliberate approach and a systematic pattern of repeated aggression against the sovereignty of the kingdom, and the security of its citizens and residents.' Bahrain hosts the US Navy's 5th Fleet, which came under repeated attack during the war.

Violence in Lebanon

Violence continued in Lebanon, further threatening the US-Iran agreement. Israeli military officials reported a soldier killed on Sunday when soldiers encountered a 'Hezbollah terrorist after entering a suspicious structure in the area of Deir Seryan in southern Lebanon.' The Lebanese state news agency reported a new Israeli attack targeting the outskirts of Deir Seryan and Taybeh.

These clashes come two days after Israel and Lebanon signed an agreement to end hostilities, calling for Israeli withdrawal from southern Lebanon and replacement by Lebanese armed forces to dismantle Hezbollah's military infrastructure. The violence undermines prospects for a durable US-Iran peace agreement, as Tehran insists on a ceasefire in Lebanon. Israel, not a party to the US-Iran deal, invaded southern Lebanon in March against Hezbollah. Ceasefires have had limited effect, with Israel refusing to withdraw from seized Lebanese territory and Hezbollah rejecting disarmament while Israeli troops remain.