US and Iran escalate attacks, while hinting at diplomacy

Traffic passes Enghelab Square ahead of the funeral for Ayatollah Ali Khamenei, Iran’s supreme leader when he was assassinated in a joint Israeli/U.S. airstrike operation, in Tehran, Iran, July 3, 2026. (Emile Ducke/The New York Times)

By MAX BEARAK, SHIRIN HAKIM, FARNAZ FASSIHI and RAVI MATTU

The United States launched a new set of attacks against Iran on Thursday, even as the two countries signaled that they were open to diplomacy to end a war that has, for now, narrowed to focus on control of the Strait of Hormuz.

President Donald Trump welcomed Iran’s decision Wednesday to release Dena Karari, a dual American Iranian citizen who had been charged with espionage and held for two years, describing it as a goodwill gesture. Separately, in a speech broadcast on Iranian state television Wednesday, Mohammad Bagher Qalibaf, the country’s top negotiator, hinted that new talks were still possible to end the conflict, even as he defended Iran’s stance on controlling the strait and warned that it was fighting an “existential” war.

Despite those potential openings to diplomacy, both sides continued to use their militaries in their attempt to exert control over the strait for a sixth straight day. Analysts say that the conflict, which began Feb. 28 and which Trump said would last just weeks, now risks turning into another American forever war.

The U.S. military has been conducting waves of strikes over the past week on what it describes as Iranian command centers and air defense and surveillance facilities, including overnight in the port city of Bandar Abbas. Iranian state media reported Thursday afternoon local time that Qeshm Island, strategically located in the strait, had been hit, and the U.S. military said it had launched a new set of attacks several hours later.

The Iranian military said that it had launched strikes on U.S. military assets in Jordan and Kuwait. The Kuwaiti army said on social media that it had intercepted Iranian drones. The Jordanian military said it had shot down eight Iranian missiles and that there were no casualties or damage.

Ebrahim Zolfaghari, an Iranian military spokesperson, said in a statement that “all infrastructure in the region will be crushed” if Trump made good on his renewed threat to target bridges, power plants and other civilian sites. Such attacks could be considered war crimes under international law.

Aerial attacks were also reported in parts of Iran on Thursday, according to state media. The reports said air defenses were activated in Tehran, the Iranian capital, and strikes were reported on Semnan Airport, about 145 miles to the east.

Here’s what else to know:

— Naval blockade: The U.S. military said it had disabled an oil tanker and “redirected” two vessels in the Strait of Hormuz in the first 24 hours since reimposing a naval blockade on Iranian ports Tuesday. Central Command also said that it had fired on an oil tanker near Kharg Island, Iran’s oil export hub, the first time it has targeted a commercial vessel since the new blockade began.

— American released: Iranian authorities freed Karari, who had been prevented from leaving the country since December 2024. Her lawyer, Jared Genser, said Karari had been caught up in Iran’s long-held practice of apprehending dual citizens to use as political pawns.

— Gas prices: The average price of diesel in the United States rose above $5 a gallon Thursday, the first time it has done so since June, as renewed fighting over the Strait of Hormuz puts pressure on energy prices.