Ceasefire Collapses as US Iran Trade Strikes Escalate

The truce between Washington and Tehran has ended just weeks after it began. President Trump declared the June 17 memorandum of understanding "over" at the NATO summit. He cited failed performance on commercial vessel safety in the Strait of Hormuz. A US official said technical talks continue, but the tone shifted to threats against Iranian military capacity following attacks on three merchant ships.

Tensions rose as the two sides traded airstrikes for a second day. The US Central Command struck about 90 targets near the Strait and the Bushehr nuclear facility. Iran launched missiles at US assets in Kuwait, Bahrain, Qatar, and Jordan. Crowds gathered during the burial of late Supreme Leader Ali Khamenei to carry death threats against Trump as bridges to Mashhad were damaged.

The fighting has turned a vital waterway into an active combat zone. Daily traffic through the Hormuz route fell from 130 vessels before the war to single figures on the southern route closer to Oman. Overall daily numbers dropped to about 30 ships. Fear of further strikes keeps tankers grounded and cargo routes blocked.

Oil prices jumped at first but have since stabilized slightly. Prices spiked on fears of a total blockade before retreating to 76 dollars and 30 cents for Brent crude futures for September delivery. US West Texas Intermediate settled at 71 dollars and 87 cents. The optimism that surrounded the recent deal has evaporated, replaced by a volatile cycle of violence impacting business and seafarers.

The situation threatens to reignite a broader regional war involving Israel and destabilize 20 percent of global oil flows. Iran demands tolls for passage while the US insists on free navigation. Strikes near the perimeter of Iran's only civilian nuclear plant have raised alarms about safety. Accusations of war crimes over damaged bridges and infrastructure deepen the rift.

Trump declared the truce dead, yet US officials say technical talks are ongoing. Both sides claim war crimes while targeting critical infrastructure like nuclear perimeters. The window for diplomacy narrows rapidly as strikes continue. Watch whether Iran accepts a new deal or if the conflict widens into a full-scale regional war.