Iran says Hormuz being closed, Qatar condemns 'dangerous escalation'

Iran said it was closing the Strait of Hormuz and launched missiles and drones at Gulf neighbors after the US carried out a new round of strikes as their conflict escalated.

The US military insisted ships are moving through the Strait of Hormuz despite Iran's claim to have shut it.

"Iran does not control the strait. Traffic is flowing," CENTCOM, which oversees US forces in the Middle East, said.

The latest exchange of fire was sparked by another Iranian attack on a commercial ship in the strait, whose crew were forced to abandon the vessel after it went up in flames.

The escalation is the latest to undermine an interim agreement between Washington and Tehran aimed at ending their war, which broke out in late February with US-Israeli strikes that killed Iran's supreme leader.

On the Strait, an adviser to Iran's supreme leader said: "This strategic passage is more important than dozens of atomic bombs, and the Islamic Republic of Iran will protect it."

Ceasefire over

Mediators have been trying to salvage a diplomatic solution after US President Donald Trump this week declared the ceasefire over.

"Following this incident... the Strait of Hormuz will be closed until further notice and until the end of American interventions in this region," Iran's Revolutionary Guards said, according to state news agency IRNA.

Iran said it had targeted two ships in Hormuz, claiming they had ignored instructions to use an approved transit corridor or were "violating regulations".

The attacks prompted a barrage of US strikes across Iran in response, with the US military saying it had hit about 140 targets in its third round of attacks this week.

Iran's top negotiator Mohammad Baqer Qalibaf said: "The era of one-sided deals is OVER. We told you: keep your word or pay the price. Reality is knocking."

Iranian media reported explosions in Bandar Abbas, Sirik, Jask and on Qeshm Island as well as in Khuzestan province, with one soldier reported dead in the southern city of Jask.

"The United States is imposing a heavy cost by continuing to degrade Iran's ability to attack civilian mariners and commercial ships freely transiting the strait," the US military said.

US defense secretary Pete Hegseth said: "Iran made a poor choice. Now they pay."

Explosions in Gulf region

Iran's response came quickly, with sirens and explosions soon heard in Qatar, the United Arab Emirates and Bahrain, journalists and local authorities reported.

Qatar said three people were injured by Iranian attacks, while the UAE issued a warning for incoming missiles but later said they did not enter its territory.

Kuwait also said it was working to intercept an attack, while Jordan said three Iranian missiles fell inside the kingdom.

Iran's Guards said they also hit Oman, which has rarely been targeted. 

They claimed to have destroyed "the logistical support centers for naval vessels and the refueling facilities for US aircraft carriers at the port of Duqm."

Muscat summoned the Iranian ambassador and handed him a formal protest - a rare move for the sultanate, which has been attempting to balance competing demands from Washington and Tehran.

The attack came just hours after the country hosted Iran's foreign minister to discuss the Strait of Hormuz, a key point of contention standing in the way of a final agreement to end the conflict.

Iran closed the waterway to commercial shipping during the war, heavily impacting the world economy because the strait is a key conduit for energy exports from the Gulf.

Control of Hormuz

Tehran insists on controlling the passage of ships and plans to charge fees, a stance Washington has rejected. Iran's recently created Persian Gulf Strait Authority said on Sunday that passage through the strait was not currently possible due to "recent illegal movements of the United States military forces in the region". Permits would be issued "as soon as stability and calm are restored," it said.

Control of the waterway has emerged as key leverage for Iran, with an advisor to the country's supreme leader saying it was more important than "dozens of atomic bombs."

Sunday's attack on a Cyprus-flagged container ship in the waterway left one Indian sailor missing, New Delhi said.

Muscat meanwhile said it had rescued 23 crew members from a commercial ship.

Iran said it had fired "warning shots," but the US military accused Tehran of "blatantly" attacking the vessel.

The crew abandoned ship and were on a lifeboat, British maritime agency UKMTO reported, around 17 kilometers east of Oman.

Pakistan urges 'de-escalation'

Separate Iranian strikes on ships in Hormuz had already triggered fighting earlier this week along with heated rhetoric.

Iran's supreme leader Mojtaba Khamenei has vowed revenge for the killing of his father and predecessor on the first day of the war on February 28. He said Iran had compiled a list of individuals to be targeted.

A conservative newspaper in Iran known for its provocative tone later published a list that included the leaders of the US, Israel and European countries, but there was no suggestion it was officially endorsed.

Trump said any attempt to assassinate him would lead the United States to "completely decimate" Iran.

The top diplomat for Pakistan, which has been mediating, called for "de-escalation" Sunday during a phone call with his Iranian counterpart, Islamabad said.

"Dialogue and diplomacy remain the only viable path to resolving disputes and achieving lasting peace," said foreign minister Ishaq Dar.