The United States launched a fresh wave of airstrikes on Iran on Monday following an Iranian attack on a container ship, as both sides traded blows over control of a vital shipping corridor and a fragile diplomatic deal appeared to collapse.

According to US Central Command, the strikes targeted Iran's air defence systems, radar sites, missile and drone equipment, and small boats. The military said it was seeking to degrade Iran's ability to attack commercial ships in the Strait of Hormuz, a narrow waterway at the mouth of the Persian Gulf through which roughly one-fifth of global oil supplies normally pass.

Iran responded with extensive missile and drone attacks on US military facilities across the region. State-affiliated Iranian media reported that ballistic missiles were fired from western and central Iran toward US military positions in Bahrain, Kuwait, Oman and Jordan. Bahrain activated air raid sirens, and Kuwait said it was intercepting hostile fire. Jordan's military reported shooting down four Iranian missiles with no casualties or damage.

The escalation marks a sharp deterioration in a 60-day interim agreement, known as a memorandum of understanding, that the US and Iran had reached to halt hostilities and open diplomatic talks. According to Iran International, both sides are now accusing each other of violating the deal's terms. An Iranian foreign ministry statement said the US attacks had "rendered futile" diplomatic efforts of recent months.

US President Donald Trump claimed on Sunday that Iran had agreed to a diplomatic deal on Saturday before attacking a ship in the strait with a drone. "They gave up everything, and then within an hour, they launched a drone at a ship," Trump told NBC's "Meet the Press." It was unclear what specific deal Trump was referring to.

The core dispute centres on who controls the Strait of Hormuz. The US military insists Iran does not control it and that the waterway must remain open to commercial shipping. Iran's Revolutionary Guard rejected this, stating: "The Strait of Hormuz is our territory, and we will not allow a rogue and child-killing army from the other side of the world to continue its illegal interference in it."

Iranian state media reported that the latest US strikes killed at least one person and wounded four at a water pumping station in the southwestern city of Mahshahr. Explosions were reported across southern and western Iran, including near Qeshm Island and Bandar Abbas, both close to the strait.

The escalation has rattled global markets. Brent crude oil rose more than three percent in Asian trading as investors priced in the risk of prolonged disruption to shipping through the strait. Regional governments have expressed alarm. Iraq called for restraint, while Qatar, which had been attempting to mediate between Tehran and Washington, remained engaged with Iranian counterparts, though mediation efforts showed little sign of progress.

Sources: Times of Israel, Iran International