New strikes target Iranian military infrastructure
The U.S. military struck Iranian missile sites, air defense systems and naval installations in the early hours of Wednesday, CENTCOM confirmed. The operation marks the latest escalation in a conflict that began in March after Iran-backed militia attacks on U.S. forces in the region. President Trump previewed the strikes a day earlier, warning that "power plants" could be on the list of targets if Iran does not agree to ceasefire terms.
Trump backtracks on Hormuz tolls after 24 hours
In a rapid reversal, Trump scrapped his proposal to charge cargo ships a 20% fee for using the Strait of Hormuz, a plan announced with fanfare on Tuesday. Instead, the U.S. reinstated a naval blockade of Iranian ports, a strategy that has been used intermittently throughout the conflict. The about-face drew criticism from both hawks who wanted stronger action and moderates who saw the toll plan as economically destabilizing. Oil prices rose 3% on the news of renewed hostilities.
Iran threatens to cut off regional energy exports
Tehran responded by threatening to halt all energy exports from the Middle East, a move that would roil global markets. The Strait of Hormuz sees about 20% of the world's oil pass through daily. Analysts at CNBC warned that the conflict risks becoming a prolonged engagement with no clear exit strategy, as ceasefire talks have faltered repeatedly over the past month.