TEHRAN, Sep 2 – Iran launched attacks against U.S. allies across the Gulf early Wednesday, marking a sharp escalation after a monthlong lull in fighting and following a night of American military strikes on Iranian targets. Iranian officials said one of the U.S. attacks struck a home where a wedding celebration was taking place, causing civilian casualties.
The renewed confrontation has added to fears that the six-month conflict could move closer to a broader regional war. It has already pushed oil prices sharply higher, disrupted global markets and created growing political pressure in Washington ahead of the November midterm elections.
The latest escalation follows U.S. strikes on Iranian rocket launchers in the Strait of Hormuz over the weekend. Washington said the launchers were being prepared for use in an operation involving mines in the strategically important waterway. Iran responded by firing missiles toward American bases in Jordan, with those attacks reportedly intercepted.
Iran’s economy has continued to deteriorate under the strain of the conflict and economic pressure. On Wednesday, the Iranian rial fell to another record low, with currency traders in Tehran exchanging around 2.20 million rials for one U.S. dollar, according to market figures. The rate represented another significant decline from the previous week’s record.
Hamidreza Azizi, a senior Iran analyst at the Crisis Group, warned that neither side could remain indefinitely in the current cycle of limited military exchanges without facing pressure to either negotiate or escalate.
Strait of Hormuz Becomes the Central Front in the Conflict
The latest fighting has increasingly centered on the Strait of Hormuz, one of the world’s most important shipping routes for energy supplies.
Sascha Bruchmann, an analyst with the International Institute for Strategic Studies’ Middle East office in Bahrain, said the recent situation had appeared to be moving somewhat in Washington’s favor before the new round of attacks. Oil prices had been near $80 a barrel, while Iranian leaders were publicly acknowledging worsening economic difficulties.
Last week, U.S. Central Command commander Adm. Brad Cooper said the strait had been cleared of mines and that the U.S. Navy had helped nearly 1,500 commercial vessels carrying about 750 million barrels of oil move through the area in recent months.
Bruchmann said Washington appeared to be trying to restore confidence in global energy markets by demonstrating that oil shipments could continue despite the conflict. Iran, however, had an incentive to challenge that message and create renewed uncertainty around the security of the waterway.
Since the latest fighting began, Brent crude, the international benchmark for oil prices, has climbed to around $95 a barrel. That represents an increase of more than 30% since the beginning of the war.
The higher cost of oil has also intensified concerns about inflation and the broader impact on economies already dealing with uncertainty from the prolonged conflict.
Gulf States and Regional Forces Report New Attacks
After the reported Iranian attacks on American positions in Jordan, authorities in Kuwait and Bahrain said they had also come under attack. Neither country reported casualties.
Mohsen Rezaei, the recently appointed head of Iran’s Supreme National Security Council, said Tehran would respond through military, diplomatic and economic measures. In a statement posted on X, he warned that Iran’s new strategy would challenge the foundations of its opponents.
The confrontation also extended into Iraq. Kurdish authorities said they intercepted 10 drones carrying explosives near Irbil, where American military facilities are located. Iranian state television later reported that U.S. bases in the area had been targeted.
In southern Lebanon, Israel’s military said two explosive drones launched by Iran-backed Hezbollah targeted Israeli soldiers. No casualties were reported.
The U.S. Central Command said its strikes on Tuesday had focused on Iranian military infrastructure, including air defense positions, radar systems and maritime assets.
American military resources have come under increasing pressure as the conflict has continued. At the same time, political criticism in Washington has intensified, particularly as the cost and potential consequences of a prolonged military campaign remain uncertain.
Reported Wedding Strike Raises Questions Over Civilian Casualties
One of the most serious allegations from the latest U.S. operation involved an attack on a home in Kuhestak, a small coastal town overlooking the Strait of Hormuz.
Iranian state media reported that the house was hosting a wedding celebration when it was struck. IRNA, the country’s official news agency, and Iranian state television said four people were killed, including two women and two children aged 4 and 16. At least 68 others were reported injured.
Shortly after the attack, Ahmad Nafisi, the province’s deputy governor, had told Iranian state television that five people were killed. Authorities did not immediately explain why the reported death toll later changed.
Security camera footage published by the semiofficial Fars news agency showed several powerful explosions in Kuhestak, with fireballs illuminating the night sky.
Images released by the semiofficial Tasnim news agency showed injured children receiving treatment at a hospital in nearby Minab. The area had already suffered heavily during the conflict. A missile strike on the opening day of the war reportedly hit a primary school in Minab, killing more than 100 children.
Footage released by the Iranian Red Crescent showed rescue teams entering damaged homes after the latest strike. One house appeared to have a large hole in its roof, while surrounding buildings in the densely populated neighborhood also showed signs of damage.
Iran has separately said that four members of the Revolutionary Guard and 10 members of the Guard’s volunteer Basij forces were killed during the latest American attacks.
Missile Evidence, Oil Shipping and the Search for a Way Out
Two weapons specialists who examined images of missile fragments released by Iranian media said the weapon used in the Kuhestak attack appeared to be a U.S.-made SLAM-ER cruise missile.
Trevor Ball, a conflict researcher with the investigative organization Bellingcat, described the SLAM-ER as a highly precise weapon that can be redirected during flight by an operator using infrared imagery.
N.R. Jenzen-Jones, director of Armament Research Services, said the air-launched missile is also used by Saudi Arabia and the United Arab Emirates. Neither country has reported conducting recent military strikes against Iran.
Ebrahim Azizi, who chairs the Iranian parliament’s National Security and Foreign Policy Committee, vowed that those responsible would face consequences.
U.S. Central Command spokesman Capt. Tim Hawkins said the American military was aware of the reports originating from Iranian state media and was examining the allegations. He did not say whether a formal investigation had been opened.
Meanwhile, the Strait of Hormuz remains far from operating normally. Before Israel and the United States launched attacks against Iran on Feb. 28, roughly one-fifth of the world’s traded oil passed through the waterway. Iran largely restricted shipping after the conflict began.
Despite repeated statements from Washington that the route is open, only a limited number of ships are now making the passage each day. Iran has also continued to target vessels operating in and around the strait.
Saudi shipping company Bahri said Wednesday that two Filipino sailors were killed in an attack late Monday while their vessel was passing through the waterway.
A ceasefire agreement reached in June quickly collapsed amid renewed exchanges of military strikes. Pakistan has since been working as a mediator to help revive diplomatic talks.
Late Tuesday, President Donald Trump said he would not force Iran back to the negotiating table, arguing that Washington was in a stronger position because of its military posture around the Strait of Hormuz and Iran’s worsening economic crisis.
For now, however, the conflict appears trapped between escalation and diplomacy. With military attacks spreading across the Gulf, oil markets under renewed pressure and both governments facing increasing costs, the risk of a wider war remains one of the most serious concerns for the region and the global economy.