US and Iran trade more strikes in Gulf as fears of escalation mount

Iran says it has carried out drone strikes on US military facilities and bases across the Middle East in retaliation for the 13th consecutive night of American attacks on the country.

Explosions were reported along Iran’s Gulf coast, and in western, northern and central areas. Four people were killed and five injured in an attack in the south-west, Iranian state media said.

Iran later announced strikes on US-allied Kuwait, while sirens sounded in Bahrain and Jordan, and flights were suspended at a major Iraqi airport after a reported drone crash.

It comes as Iran condemned the US plan to use frozen Iranian assets to pay for war damages, in a sign of further escalation between the two countries.

On Thursday, US President Donald Trump said damages to ships and cargo in the Strait of Hormuz would be paid for by “Iranian Money that the United States has in its possession, and controls”.

“These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do,” he posted on his Truth Social platform.

Iranian Foreign Minister Abbas Araghchi responded by saying that seizing another country’s assets to “pay for unrelated future claims is an incendiary precedent”.