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State Department Issues "Worldwide Caution" As US-Iran Tit-For-Tat Spirals Into Regional Crisis

Tyler Durden's Photo
by Tyler Durden
Authored...

Summary

  • CENTCOM Says US Forces Launch New Strike On Iran
  • State Dept. Issues Worldwide Warning 
  • CENTCOM says two US troops killed in Iranian attack on Jordan base.
  • Iran formally suspends MoU with the US, declaring agreement is over & commitments will no longer be fulfilled.
  • Fighting escalates into seventh straight day of heavy bombings.
  • Iran reportedly struck a US base in Saudi Arabia for the first time in four months.
  • US strikes disrupt southern Iran's telecom network, knocking out 116 communication towers amid new infrastructure war.
  • Iran pounds Kuwait's energy infrastructure, damaging power & desalination facilities.
Will the US announce withdrawal from MOU negotiations by July 31?
Yes 14% · No 86%
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CENTCOM Says US Forces Launch New Strike On Iran 

CENTCOM said US forces struck Iranian missile and radar systems stationed along the Strait of Hormuz, further dismantling Tehran's surveillance and strike capabilities while eroding its ability to control the maritime chokepoint.

"Today at 6 p.m. ET, U.S. forces began launching new airstrikes against Iran at the Commander in Chief's direction," CENTCOM wrote on X. 

CENTCOM added, "The strikes are designed to further degrade Iran's ability to threaten commercial shipping in the Strait of Hormuz and swiftly punish Islamic Revolutionary Guard Corps forces who launched attacks against American service members in Jordan last night." 

State Department Issues "Worldwide Caution" 

Iranian ballistic missile strikes on Jordan's Muwaffaq Salti Air Base, which killed two U.S. service members and injured others, are likely to trigger a major U.S. retaliation.

Israel's Channel 14 reported late Saturday that President Trump instructed CENTCOM to "open the gates of hell" on Iran.

The U.S. State Department issued a worldwide caution, warning: "Due to heightened tensions in the Middle East, the security environment remains complex, with the potential for unforeseen escalation."

Will tensions ease before the NY futures open on Sunday evening?  

Americans Killed by Iranian Missiles on Jordan

Footage has been widely circulating over the past half-day showing massive Iranian ballistic missile strikes on Jordan. Iran said it targeted a US base there, and took out various aerial and radar assets, and caused casualties among American troops.

But the Pentagon has been radio silent on the extent of potential damage, until now: US officials are reporting that two American service members were killed in the overnight Iranian attack. According to emerging details in Axios:

Two U.S. service members were killed and more wounded in an Iranian ballistic missile attack on an airbase in Jordan on Saturday, military officials said.

This is the first time U.S. troops have been killed since the fighting resumed two weeks ago. The incident raises the number of U.S. service members killed in the war to 16.

On Saturday at least two Iranian ballistic missiles hit the Muwaffaq Salti Air Base in Jordan, which hosts U.S. troops and fighter jets.

CENTCOM posted to X, officially confirming the news: "On July 17, two U.S. service members in Jordan were killed in action as U.S. Central Command (CENTCOM) and partner forces defended against Iranian ballistic missile and drone attacks. Additionally, one service member is currently missing in action."

The statement has noted additional injuries: "Four American service members were medically evacuated to Jordanian hospitals. They have since been discharged. Other personnel who were evaluated for minor injuries have returned to duty," CENTCOM said.

Iran Formally Suspends MoU

It is now "official": the Iranians have declared that the signed Memorandum of Understanding (MoU) with the United States is dead. Tasnim is reporting Saturday that Iran will no longer fulfill its MoU obligations amid alleged repeat US violations. The past weeks have seen each side hurl warnings and threats to pull out, while attaching conditions that must be fulfilled.

But after what is now a full week of renewed fighting, it has been effectively torn up, with negotiations no longer happening. Al Jazeera is citing a top Iran official's precise statement on suspending the MoU in the following:

Previously, we have seen again and again Iranian officials accusing the US of violating the MoU and also putting some conditions if the aggression continues.

What we’re seeing is Kazem Gharibabadi, Iran’s deputy foreign minister, who is also head of the Iranian technical negotiating team, saying that in practice, the US has violated all the commitments and suspended the MoU entirely.

“We also likewise have suspended all of our commitments as a result; we are no longer implementing those commitments,” he added.

So, officially, this is the first time the Iranians are saying the MoU is over and they’re not going to implement any clause.

Given President Trump has apparently just ordered dozens more aerial refueling planes to the region, the conflict looks to continue going up the escalation ladder for at least the next week or longer. Each side will seek to impose more economic and military pain, while waiting for the other to blink. Battle of narratives over damage and retaliation:

Saudi Base Attacked for First Time in 4 Months

Saudi Arabia has come under attack by Iranian missiles in the last 24 hours, the kingdom is confirming on Saturday, in a major escalation given that this is a first since near the start of the war several months ago. According to Reuters:

The Saudi civil defense early on Saturday issued two early warnings for Al-Kharj city and Yanbu to be alert to “potential danger,” but it later says the danger has passed in both areas, without providing details on the danger that triggered the warnings.

A US official tells the Axios news site that Iran targeted an American military base in Saudi Arabia with a ballistic missile, the first time that the Islamic Republic has directly attacked the kingdom in four months.

Locations in Jordan and even Syria have also been hit in recent salvos, but the US military has downplayed these attacks - and there's a battle of narratives over just how destructive these have been amid the fog of war.

Kuwait also reeling from stepped-up attacks...

116 Telecoms Towers In Southern Iran Taken Out

As we featured earlier, Iranian communications and even the supply of drinking water have been severely impacted in some places of southern Iran, amid continuing US airstrikes on civic and national infrastructure, amid the seventh consecutive day of war. "Hormozgan's chief of communications and information technology says the US's overnight attacks disrupted telecommunications in Bandar Abbas and Hajiabad, in the northern part of the province," Al Jazeera reports

Authorities there have tallied at least 116 telecommunication towers which were taken out of service due to the US onslaught. This has resulted in outages and disruptions of fixed-line, mobile, and internet services, per Tasnim news agency.

This suggests the US is returning to a strategy which seeks to create destabilization within, targeting the ability of the public to communicate and access information, returning the situation to the early weeks of the war, which saw Tehran authorities themselves curb internet and some telecoms access for the citizenry.

Kuwait Power & Desalination Plant Hit

Kuwait was bombarded overnight in one of the fiercest Iranian retaliatory strikes since the US-Iran conflict erupted in late February, with missiles and one-way drones targeting power infrastructure and other critical energy assets.

Local outlet Kuwait News Agency reports an unspecified site of the Kuwait Petroleum Corporation suffered "significant material losses" as the week-long flare-up in Gulf tensions has derailed any near-term normalization of tanker flows through the Strait of Hormuz.

There was a report that the Al-Subiya power station was struck. This marks the second attack on Kuwaiti power infrastructure in just days, after a transformer at the Zour South electricity and desalination complex was hit on Friday.

Authorities disconnected several power-generating units as a precaution and urged residents to conserve electricity. A Kuwaiti army base was also struck during the latest escalation, injuring several personnel.

Infrastructure War in Full Swing

On March 2, we warned: 

Bahrain and Jordan intercepted Iranian missiles and drones. The overnight barrage followed a seventh consecutive night of US strikes targeting Iranian surveillance sites, weapons storage, logistics infrastructure and maritime offensive capabilities as the Department of War seeks to erode Tehran's leverage on the Hormuz waterway.

As of late Friday, the previous US-Iran wrap stated:

  • Surge in more large US refueling planes headed to Mideast, signaling likely expansion of strikes on Iran.
  • US attacks hit Iranian energy and transport infrastructure.
  • Iran threatens stronger retaliation and claims strike on US base in Qatar - and deepens attacks to include US outposts in Jordan, Syria.
  • Iran urges power conservation; Hormuz shipping traffic declines further.
  • Oil prices rise to session highs on fears of broader regional conflict.

Brent chart

The latest Hormuz tanker transit data via Bloomberg shows that activity at the maritime chokepoint has all but ceased. This data is based on ships activating their transponders and doesn't account for ships that 'go dark'...

Overnight headlines

...courtesy of Bloomberg:

US-Iran Escalation

  • The US launched its seventh consecutive night of strikes against Iran on Friday at 3 p.m. ET, aimed at degrading Iran's military capabilities, including hitting bridges, energy infrastructure, and a port facility in southern Iran, according to Iranian state media.
  • The conflict has intensified beyond military targets, with the US striking six road bridges and reports of attacks near Bushehr's nuclear power plant and the province of Lorestan, raising fears of a return to full-scale war.
  • The hostilities were triggered by an Iranian drone strike on a cargo ship in the Strait of Hormuz on June 25, just days after the US and Iran signed a preliminary ceasefire deal, setting off a chain of escalating attacks.
  • Iran has threatened a "full-scale offensive" in response to US strikes, with the Strait of Hormuz remaining virtually closed as of Saturday.

Iran Attacks Kuwait

  • Iran launched a heavy barrage on Kuwait on Saturday morning, striking a vital oil facility and causing significant material losses and injuries, according to Kuwait Petroleum Corporation via state news agency KUNA.
  • Kuwait airport suspended flights following the Saturday attacks, which triggered multiple rounds of sirens from around dawn.
  • Iran also struck a power and desalination plant and a transformer at the Zour South facility, causing a fire and marking Tehran's first targeting of power infrastructure during the current escalation.
  • Kuwait's foreign ministry accused Iran of systematically targeting civilian sites and vital infrastructure, saying it "endangers the lives and safety of civilians."

Iran's Counterstrikes

  • Iran has been targeting US bases in Kuwait, Jordan, and Bahrain in retaliation for US strikes. The IRGC claimed its 20th wave of "Nasr 2" operations destroyed several American aircraft at a US airbase in Jordan.
  • US-sanctioned Iranian tankers are U-turning and zig-zagging in the Gulf of Oman as the US enforces an aggressive blockade of Iranian shipping, having redirected three merchant ships, boarded one vessel, and disabled a non-compliant tanker.

Energy Market Impact

  • Crude oil prices surged sharply, posting their biggest rise since April, as fears of renewed escalation grew and shipping traffic through the Strait of Hormuz slumped significantly.
  • The Strait of Hormuz shutdown is expected to spark massive investments aimed at permanently reducing reliance on the chokepoint, restructuring global energy infrastructure and trade flows, according to Bloomberg Intelligence.
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