US and Iran exchange strikes, Trump plans to use frozen Iranian assets for war damages
Iran said it has carried out drone strikes on US military facilities across the Middle East in retaliation for what it described as the 13th consecutive night of American attacks on the country. Explosions were reported along Iran's Gulf coast and in western, northern and central areas. Iranian state media said four people were killed and five injured in an attack in the south-west.
Iran later announced strikes on US-allied Kuwait, while air sirens sounded in Bahrain and Jordan. Flights were suspended at Erbil International Airport in Iraq after a reported drone crash, though operations have since resumed.
The developments come amid growing tensions between the United States and Iran, with both sides engaging in military actions and heated rhetoric. US President Donald Trump said on Thursday that damages to ships and cargo in the Strait of Hormuz would be paid for using frozen Iranian assets under US control. In a post on his Truth Social platform, Trump stated: 'These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do.'
Iranian Foreign Minister Abbas Araghchi responded, warning that seizing another country's assets to 'pay for unrelated future claims is an incendiary precedent' and that 'ensuing chaos will not be pretty or peaceful.'
The US and Iran had agreed in June on a 14-point Memorandum of Understanding (MOU) to halt military operations and reopen the Strait of Hormuz, with a goal to end hostilities within 60 days. However, Trump declared the ceasefire 'over' three weeks later, citing Iranian attacks on ships in the strait and subsequent US strikes. Point 11 of the MOU had stated that the US would make frozen Iranian assets fully available for use.
Trump also vowed 'major military punishment' against Iran for attacks by Yemen's Iran-backed Houthis in the Red Sea, which have disrupted shipping and contributed to a rise in crude oil prices above $100 a barrel, the highest level since May. He told the Axios news website he was considering launching strikes 'bigger than ever before' on Iran.
On Thursday night, the US military said it carried out strikes to degrade Iran's ability to threaten civilian shipping. US Central Command (Centcom) said it targeted 'Iranian military command centers, drone storage facilities, communication networks, coastal surveillance sites and maritime capabilities.'
Iran's army claimed it attacked US bases in Kuwait. Bahrain's Interior Ministry reported air sirens, and Iranian state media said alarms had been activated in Jordan. The AFP and Reuters news agencies both reported a drone crash at Erbil International Airport, causing a temporary stoppage.
