US, Iran Effectively Scrap Ceasefire as Middle East Tensions Rise Again

The US and Iran have effectively declared their ceasefire agreement defunct, with each side accusing the other of violating the deal. Military clashes continued, and tensions in the Middle East escalated again after a tanker was struck in the Strait of Hormuz.

CNN reported on July 20 that Iranian Foreign Ministry spokesman Esmaeil Baghaei said the US had violated the ceasefire memorandum of understanding "in both content and spirit" and that Tehran could no longer carry out the agreement. US Secretary of State Marco Rubio responded that Iran was not complying with the deal and that a ceasefire could not hold if the agreement was being violated.

Both sides continued military action on July 20. Kuwait's military said it intercepted a hostile attack targeting the country. Bahrain also issued an air raid alert.

The UK Maritime Trade Operations said a tanker transiting the Strait of Hormuz was hit by an unidentified projectile. The ship caught fire and later drifted near the Omani coast, while all crew members evacuated safely.

The Pentagon said an Iranian attack in Jordan last week killed one US military officer and one US soldier. It was the first US military deaths caused by an Iranian attack since March. Iran's Health Ministry said clashes from June 27 to July 19 killed more than 50 people and injured 517.

Renewed tensions in the Middle East are also putting upward pressure on oil prices. With the ceasefire agreement effectively gutted, the prospect of disruption to crude shipments through the Strait of Hormuz is emerging as a key variable for global energy markets.