Iran's Islamic Revolutionary Guard Corps Navy announced the closure of the Strait of Hormuz on July 12 after firing on a Cyprus-flagged container ship, and Iran subsequently struck targets in Bahrain, Kuwait, Jordan, and Qatar, while the United States launched a third round of strikes on Iranian port cities [1][5][7]. The IRGC stated that the strait would remain closed until the end of US interference in the region and that no vessel would be permitted to pass [7][32]. US Central Command said the strikes targeted approximately 140 military sites in retaliation for the IRGC's attack on the M/V GFS Galaxy, and that one civilian crew member remained missing [9][16]. US Defense Secretary Pete Hegseth stated: "Iran made a poor choice. Now they pay." [7][21]
The IRGC framed the closure as a response to unauthorized foreign naval activity, stating that a vessel had jeopardized maritime security by disabling its transponder [12]. Iran's Foreign Ministry spokesman separately stated that the strait had not been closed and that maritime traffic continued under supervisory measures [43]. An Iranian source cited by Al-Sumaria asserted that the strait falls within the internal and territorial waters of Iran and Oman jointly, and that any management decisions will be made by the two coastal states [25]. US Central Command characterized the attack on the GFS Galaxy as a violation of the ceasefire Memorandum of Understanding [16]. The UN shipping agency's governing council condemned Iran's unilateral creation of a traffic-control body and called on member states not to recognize Iran's sovereignty claims over the strait [38][15]. Maritime law academic Jennifer Parker argued that Iran's plan to impose tolls faces insurmountable legal barriers because the strait is an international waterway subject to the right of transit passage [39]. Iran's Foreign Ministry spokesman rejected the IMO draft as politically motivated and stated that Iran is not bound by UNCLOS [43].
President Donald Trump declared the ceasefire over while confirming that the US had agreed to Iran's request to continue talks [4][22]. Iran's Foreign Ministry spokesman Esmaeil Baghaei denied that Iran had requested talks, stating that Tehran had only agreed to a visit by the Qatari mediator [20]. Trump posted on Truth Social that 1,000 missiles were "locked and loaded and aimed at the Islamic Republic of Iran" should Tehran attempt to assassinate him [12][29]. Iranian Foreign Minister Abbas Araghchi accused the US Treasury of violating Paragraph 9 of the MoU by revoking a sanctions waiver, stating: "Iran has so far kept its word, unlike the so-called US Treasury Secretary" [18][6]. Iran's UN representative Amir Saeid Iravani warned that if the US continues to violate its obligations, Iran will no longer consider itself bound by the agreement [19][32].
US officials reported that Iran privately acknowledged the ship shootings were a mistake by a rogue internal group of hardliners attempting to undermine negotiations [4][30]. Senior Trump administration officials demanded that Iran issue a public statement acknowledging that all channels of the strait are open and that commercial vessels will not be fired upon [28][30]. US officials told media they expected Iran to announce the reopening of the strait and a pledge to stop targeting ships [3][4]. A source close to the Iranian negotiating team stated that negotiations will not take place unless the US backs down, listing conditions including Israeli withdrawal from Lebanon, resolution of the Hormuz transit issue, and normalization of Iran's oil exports [26][13]. Iran's chief negotiator Mohammad Bagher Ghalibaf stated that ending the war is a priority but that the confrontation will never end with Iran's surrender [6].
Iran's Supreme Leader Mojtaba Khamenei vowed revenge for the killing of his predecessor and father, stating: "Vengeance is the will of our nation and must inevitably be carried out" [12][28]. Khamenei said the matter depends neither on his personal existence nor on that of other officials [4]. Members of Iran's National Security Commission demanded recognition of a "new Iranian order" in the strait, with spokesman Ebrahim Rezaei warning that further US attacks would prompt withdrawal from the NPT, a change in nuclear doctrine, and closure of the Bab el-Mandeb strait [40].
The UAE and Bahrain activated air defenses against missile and drone threats, with the UAE Defense Ministry stating that explosions were the result of ongoing engaging operations of missiles and UAVs [7][12]. Qatar said it had intercepted a missile attack [8]. The Gulf Cooperation Council issued a statement condemning Iranian attacks as a serious violation of sovereignty and invoking the right to collective self-defense under Article 51 of the UN Charter [37]. Oman and Qatar pursued mediation, with Omani Foreign Minister Sayyid Badr bin Hamad Al-Busaidi meeting Araghchi in Muscat to discuss safe passage mechanisms [13][46].
Oman proposed a "Strait of Malacca" model based on voluntary contributions for navigational services rather than compulsory tolls, with toll-free passage on the southern corridor and prior Iranian approval for the northern corridor [9][48]. Qatar's foreign ministry spokesperson Majed al-Ansari opposed any arrangement granting Iran sovereignty over the waterway, stating that doing so would mean agreeing to be hostages to whatever radical element that wants to take over the strait at any time [48]. European officials reviewed the Malacca-based proposal as a potential compromise [48].
The crisis affected energy and shipping markets. War risk insurance rates for vessels transiting the strait rose to between 2% and 6% of a vessel's value, with some insurers advising shipowners to pause voyages [41]. ING economist Rico Luman stated that the closure would most heavily impact oil and gas markets, leading to higher prices and a contraction in tanker capacity [44]. IEA Executive Director Fatih Birol warned of a false sense of security in Europe and called the situation a wake-up call for reduced fossil fuel dependence [36]. BBC Swahili reported fuel rationing and price increases across Kenya, Nigeria, Ethiopia, and other African nations [35]. India's crude oil imports were unlikely to face immediate disruption due to diversified sources, though risks to LPG and LNG supply were identified [45]. The European Parliament submitted a formal question to the European Commission on energy security and economic resilience [47].
Constitutional law expert David M. Crane argued that a ceasefire does not pause the 60-day clock under the War Powers Resolution, challenging the Trump administration's legal basis for continued strikes without congressional authorization [42]. Former Israeli Prime Minister Ehud Barak suggested that Prime Minister Netanyahu could exploit military tensions with Lebanon and Iran for electoral gain [13], while French analyst David Rigoulet Roze proposed that Israel's sharing of assassination-threat intelligence may be intended to push Trump toward a harder line against Tehran [19].
Diplomatic talks between Iran and Oman continued in Muscat, with both delegations agreeing to pursue technical and political discussions on navigation safety in accordance with international law [13][19]. Turkish Foreign Minister Hakan Fidan told state broadcaster TRT that he believed a solution could be reached this weekend between Iran and Oman regarding the strait [33]. UN spokesperson Stephane Dujarric stated that the UN sees reports that discussions are ongoing and hopes they are [15].