Iranian President Masoud Pezeshkian declared on Monday that the Islamic Republic is engaged in a “full-scale war” with the United States, a statement that came as American forces widened their air campaign to provinces far beyond the Strait of Hormuz and Iran retaliated with drone and missile strikes against Bahrain, Kuwait and Jordan. The Houthi movement, Tehran’s Yemeni ally, separately announced a maritime embargo of Saudi Arabia, threatening Red Sea shipping lanes that Riyadh has relied upon to bypass the blockaded strait. Brent crude briefly surged above $91 a barrel, its highest level in over a month, before retreating on signals that diplomatic back-channels remain active.

Viewed from Washington, the expanded strikes—the tenth consecutive night of operations—are designed, according to US Central Command, to “further degrade Iranian military capabilities used to attack commercial shipping.” President Donald Trump warned on social media that Iran would pay “many times over” for every American soldier killed, after the Pentagon confirmed three additional fatalities, bringing the official US military death toll to 17 since hostilities resumed. Secretary of State Marco Rubio said Iran was using the Strait of Hormuz “as leverage against the world” and urged other nations to share the burden of protecting global shipping.

From Tehran, officials maintained that diplomatic exchanges with Washington are continuing through intermediaries, even as the Revolutionary Guards claimed strikes on sites in Bahrain, Jordan and Syria. Foreign ministry spokesman Esmaeil Baghaei said “ideas have been conveyed to us by certain mediators,” and Interior Minister Eskandar Momeni was scheduled to travel to Pakistan, which has played a mediating role. The dual track—escalating military action alongside open diplomatic channels—reflects what regional analysts describe as an attempt by both capitals to shape the battlefield while preserving a pathway to de-escalation.

The conflict’s widening geography carries immediate consequences for Gulf states and global energy markets. Bahrain reported that Iranian drones targeted its air navigation systems, though air traffic was unaffected; Kuwait said it intercepted incoming attacks; and Jordan’s military confirmed it shot down three missiles. The Houthi blockade threat, condemned by Riyadh as coming from a “terrorist militia,” could choke off Saudi Arabia’s Red Sea oil exports, which have remained a critical outlet since the Hormuz waterway became a contested chokepoint. The UK Maritime Trade Operations agency reported a vessel struck and abandoned off the UAE coast, while Iran’s Revolutionary Guards said two tankers trying to transit the strait “exploded and were brought to a halt.”

The current phase of hostilities follows the collapse of a June framework agreement that had briefly paused fighting. Since then, Tehran has reimposed its blockade of the Strait of Hormuz and Washington has responded with a counter-blockade of Iranian ports. The dossier now sits at a volatile juncture: military operations are extending into new Iranian provinces, including Bushehr, home to the country’s only operating civilian nuclear power plant, while mediator-led talks continue. The visit of Iran’s interior minister to Islamabad is expected in the coming days, but no formal ceasefire proposal has been tabled.