More on this news: US strikes southern Iran after Apache helicopter downed over Hormuz

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The strikes mark a sharp escalation in direct US-Iran military engagement and raise fresh doubts about any near-term peace deal, which markets had been tentatively pricing in. Hormuz closure risk is again front and centre, with the strait already blocking roughly a fifth of global crude and LNG flows. Any sign the conflict is widening to include port infrastructure, particularly around Bandar Abbas and Qeshm Island, will weigh heavily on shipping and oil supply risk premiums.

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US forces have struck multiple sites in southern Iran on Trump's orders, with Iranian media reporting blasts at Sirik Port and unconfirmed explosions near Qeshm Island and Bandar Abbas.

Summary:

  • US Central Command confirmed it launched 'self-defence' strikes against targets in southern Iran beginning at 5pm ET, on direct orders from President Trump
  • The strikes were in retaliation for the downing of a US Army AH-64 Apache helicopter over the Strait of Hormuz the previous day by an Iranian attack drone
  • Iranian media reported explosions at Sirik Port on Iran's southern coast, with unconfirmed reports of blasts on Qeshm Island and in Bandar Abbas
  • The two Apache crew members were rescued by a US Navy surface drone after spending approximately two hours in the water; both are in stable condition
  • Iran's Foreign Minister did not directly acknowledge the helicopter incident but warned that foreign forces in the region risked being caught in accidents or crossfire
  • The episode further complicates efforts to broker a lasting ceasefire, with Tehran's conditions for any peace deal including sanctions relief and recognition of its control of Hormuz

US forces have struck multiple locations in southern Iran following direct orders from President Donald Trump, with the strikes beginning at 5pm ET in response to the downing of a US Army Apache helicopter over the Strait of Hormuz the previous day.

CENTCOM confirmed the attacks as self-defence operations. Iranian media reported explosions at Sirik Port on Iran's southern coast, with additional unconfirmed reports of blasts on Qeshm Island and around Bandar Abbas, a strategically critical port city near the mouth of the strait.

The Apache was brought down by a one-way Iranian attack drone while on patrol in the early hours of Tuesday morning. The two crew members were subsequently rescued by a US Navy surface drone after spending around two hours in the water near Oman's coast, and were later reported to be in stable condition.

Trump had earlier signalled a response was inevitable, posting on social media that the United States was compelled to act. Iran's Foreign Minister stopped short of claiming responsibility but warned that foreign military forces operating in the region risked being caught in accidents or crossfire.

The strikes mark a significant escalation in direct US-Iran hostilities and cast further doubt over prospects for a negotiated settlement. Trump has repeatedly said the two sides are close to a deal, though little concrete progress has been reported since a fragile ceasefire took hold in early April. Iran's terms include the lifting of sanctions, the release of frozen assets and formal recognition of its authority over Hormuz, while Washington insists any agreement must preclude Tehran from developing a nuclear weapon.

Hormuz remains largely closed to commercial traffic. Before the war, the strait carried around a fifth of global crude oil and LNG shipments. US Energy Secretary Chris Wright said shipping traffic through the waterway is increasing, but cautioned it could take many months to return to normal once hostilities end.

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This article was written by Eamonn Sheridan at investinglive.com.

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