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Nayera Abdallah, Humeyra Pamuk and Gram Slattery

US and Iran exchange fire across Gulf, threatening deal

Iran targeted US military targets in Kuwait, Qatar and Bahrain in response to US air strikes. (EPA PHOTO)

Iranian armed forces have targeted US military infrastructure in ‌neighbouring Gulf states following US strikes on Iran's southern coastal and eastern provinces, putting further strain on a three-week-old ceasefire agreement.

Iran was also preparing on Thursday to bury its slain supreme leader Ayatollah Ali Khamenei at ‌the country's holiest shrine in Mashhad, in the northeast, the culmination of a week of mass funeral processions and rallies.

Khamenei was killed in a US air strike on the first day of the war on February 28.

Funeral procession in Najaf, Iraq, for Iran's supreme leader
Iran's slain leader Ayatollah Ali Khamenei will be buried after a week-long funeral procession. (EPA PHOTO)

The US military said on Wednesday its latest strikes on Iran were aimed at keeping the Strait of Hormuz open after Iran targeted three tankers in the area.

The assault came hours after US President Donald Trump said he believed the interim ceasefire with Iran to be "over".

Iranian officials said the US attacks had killed 14 people and injured 78 across five provinces on July 8 and 9, state media reported.

The Fars news agency said ‌one US strike had hit ‌a rail bridge used for trade ⁠with Russia and China.

Several explosions were heard on Thursday morning in Iran's Bushehr province, the semi-official Mehr news agency reported.

Bushehr is home to ​a Russian-built nuclear power plant.

Iran's army said in a statement it had targeted US Patriot systems with drones in Kuwait, an early-warning site in Qatar and a fuel storage of the US army in Bahrain.

Anchored vessels in the Strait of Hormuz off Bandar Abbas, Iran
The Strait of Hormuz will not be reopened through US threats, Tehran's top negotiator says. (AP PHOTO)

Kuwait said its armed forces had engaged with a cruise missile, three ballistic missiles and 10 drones in its airspace, and that one person had been injured from falling shrapnel.

Qatar, which hosts the largest US military base in the region and has often mediated between Washington and its adversaries including Tehran, called for a return to diplomacy.

In a phone call with Iranian Foreign Minister ⁠Abbas Araqchi, Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani also condemned attacks targeting commercial shipping in the Strait of Hormuz.

While Iran ‌has not claimed responsibility ​for the ship attacks, analysts say Tehran uses such actions to gain leverage in negotiations.

The Strait of Hormuz handled about a fifth of global oil supplies before the war erupted on February 28 with US and Israeli ​strikes against Iran.

Tehran ‌has since taken effective control of the strait, allowing it to force a stalemate in its confrontation with the world's most powerful military.

"The US has yet to learn that bullying and breaking its commitments no ​longer come without a cost. Let me be clear: If you strike, you will be struck back," Iran's top negotiator, Mohammad Baqer Qalibaf, wrote on X.

US President Donald Trump speaks with reporters on Air Force One
Donald Trump warned Iran that any more attacks on ships would lead to "much worse" US strikes. (AP PHOTO)

"The Strait of Hormuz will be reopened only under Iranian arrangements, not through US threats."

The US Central Command (CENTCOM) said on Wednesday its forces had struck about 90 Iranian military targets including including air defence systems and drone and missile storage sites.

"This is in retribution for yesterday’s bombing of ships by Iran. If it happens again, it will get much worse!" Trump wrote on his Truth Social platform on Wednesday.

However, the US leader, who was attending a NATO summit in Turkey, also said he did not think the latest military strikes would escalate into a full-fledged conflict with Iran.

"Anything that happens is going to be over very quickly ... and will only make it safer, including for oil," he told reporters in Ankara.

Asked before the NATO summit on Wednesday whether the memorandum of understanding with Iran was over, Trump said: "It's a very interesting question. To me, I think it's over. I don't want ​to deal with them."

"If we make a deal with Iran I'm not sure that will stick," Trump later said.

with AP

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