US, Iran Strike Infrastructure as Oil Surges, Ceasefire Collapses

The United States struck at least five bridges and an airport in southern Iran on Friday, and Iran retaliated by hitting a power generation and water desalination station in Kuwait, as the two sides expanded their conflict to infrastructure targets for the first time since a ceasefire collapsed last week.

Benchmark Brent crude climbed 3% and was on track for a third consecutive weekly gain. West Texas Intermediate crude rose $3.65, or 4.62%, to $82.60 a barrel, according to Nasdaq. Global equities fell, with Wall Street opening sharply lower before leveling off.

Iranian state media said at least five bridges were struck in the south, including the port of Bandar Khamir where a train station was also hit. Seven people were reported killed there. An airport was hit further east in Iranshahr, a province bordering Pakistan. Videos verified by Reuters showed rubble and a damaged vehicle on a smashed bridge in Bandar Khamir. Iranian Foreign Minister Abbas Araqchi said three villagers were killed while crossing the bridge and that Iran would not allow their blood "to be in vain."

Iran responded by announcing attacks on Gulf countries hosting U.S. airbases: Bahrain, Qatar and Kuwait. Kuwait's Ministry of Electricity, Water and Renewable Energy said a power generation and water desalination station was hit, causing damage, a fire and the disruption of electricity units. Firefighters brought the blaze under control. Iran also claimed strikes on U.S. bases in Kuwait, Qatar and Bahrain, and a U.S. radar station in Oman. Explosions were heard in Doha, where a child was wounded by shrapnel, according to the Qatari interior ministry.

The U.S. military's Central Command said it targeted "military logistics infrastructure," the first time in more than a week it had mentioned infrastructure in its strike summaries. President Donald Trump has threatened broad-based air strikes on Iran's infrastructure and has not ruled out a ground assault on Iran's coast or islands.

At sea, the Strait of Hormuz remains effectively closed after Iran announced a blockade and the U.S. reimposed its own naval blockade on Iranian ports. U.S. Marines boarded a tanker near the strait to enforce the blockade, releasing photos of troops rappelling from a helicopter onto the deck. Separately, armed assailants seized a small chemical tanker off Yemen in the Gulf of Aden, near the mouth of the Red Sea. One maritime security source told Reuters the incident appeared related to Somali piracy, though security sources have raised concern about potential Houthi involvement.

A ceasefire agreement reached on June 17 had briefly restored calm and reopened the strait, but it collapsed on July 7 after Iran struck ships in the Strait of Hormuz and the U.S. responded with air strikes. Iran has since signaled it could prod its Houthi allies in Yemen to close the Bab al-Mandeb strait at the mouth of the Red Sea, a key alternative route for oil shipments. Multiple sources reported that Iran has already instructed the Houthis to act if Washington attacks its infrastructure.

United Nations Secretary-General Antonio Guterres expressed concern over the escalation, particularly "attacks on civilian infrastructure in Iran and across the region," his spokesperson said.

Despite the intensifying conflict, both sides have left the door open to diplomacy. White House Press Secretary Karoline Leavitt acknowledged that the U.S. is in talks with Iran, as reported by Nasdaq. Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf stated that "doors are open for talks," while insisting negotiations do not mean capitulation, according to the same report. President Trump said the U.S. is "winning big" and that results will be seen shortly, the Nasdaq report noted.

Mohsen Rezaei, an adviser to Iran's supreme leader and former Revolutionary Guards commander, warned: "If U.S. strikes continue for several more days, we will move into a phase of full-scale offensive operations," according to japantoday.com.

The International Energy Agency estimates global crude oil demand will fall by nearly 1 million barrels per day year-on-year in 2026, a factor that could temper some supply-driven price spikes, a Nasdaq report said. However, the immediate risk premium from the Gulf closure and the threat to Red Sea shipping continues to support prices.