US forces struck an Iranian drone control station at Bandar Abbas for the second time this week, intercepting four attack drones near the Strait of Hormuz. Oil jumped above $97 as ceasefire credibility erodes.

Key Highlights

  • US Central Command struck an Iranian drone ground control station at Bandar Abbas and intercepted four attack drones targeting a commercial vessel.
  • It was the second US military action inside Iran within the same week, following Monday's self-defence strikes on missile launch sites and mine-laying vessels.
  • Iran's IRGC claimed retaliatory strikes against a US airbase; Kuwait activated air defences against incoming missile and drone threats.
  • Brent Crude surged above $97, reversing a 5%-plus decline from misplaced deal optimism the prior session.
  • The White House called an Iranian-reported Hormuz deal memorandum a complete fabrication.

The Strike and What Triggered It

In the early hours of Thursday, US Central Command forces intercepted four Iranian one-way attack drones that had been launched toward a commercial ship in waters near the Strait of Hormuz. A fifth launch was pre-empted: US forces struck an Iranian drone-launching unit in Bandar Abbas before it could fire. A US official described the actions as measured, purely defensive, and intended to maintain the ceasefire framework that has nominally been in place since late April.

Iranian media reported at least three blasts east of Bandar Abbas around 1:30 a.m. local time, followed by the activation of air defence systems for several minutes. It was not an isolated incident. US Central Command had carried out similar self-defence strikes in southern Iran on Monday, targeting missile launch sites and Iranian vessels allegedly attempting to deploy naval mines near the strait. Iran's response on both occasions was to accuse Washington of ceasefire violations, with the IRGC this time claiming it had struck a US airbase in retaliation, though it did not specify the location.

Kuwait's military announced it had activated air defence systems against incoming missile and drone threats, with the army attributing explosion sounds heard across the country to interception activity rather than direct impacts. The regional spillover is a consistent feature of each escalation cycle.

Why Bandar Abbas Matters

Bandar Abbas is not an incidental target. The city is the Capital of Iran's Hormozgan Province and serves as the headquarters of the Iranian Navy, occupying a key strategic position along the Strait of Hormuz. The drone control station struck this week sits within the same urban and military complex that has been a focal point since the conflict began in late February. Striking it twice in a week signals that Washington views Bandar Abbas as an active operational hub, not a passive military installation.

The tactical logic is straightforward. Iran has been using the site to coordinate drone and mine operations against commercial shipping transiting or attempting to transit the strait. US strikes are designed to degrade that capability incrementally, without triggering a broader escalation that would collapse the ceasefire entirely.

Diplomacy Closes Another Window

The military action came hours after what briefly appeared to be a diplomatic opening. Iranian state television reported a near-complete draft memorandum of understanding, under which Tehran would restore Hormuz shipping to pre-war levels within a month, with Iran and Oman jointly managing traffic. The White House rejected this outright, calling the reported memorandum a complete fabrication, and Trump stated that no external party would govern the strait.

Oil markets had already priced in some deal probability, with Brent and WTI both falling more than 5% the prior session. That repricing reversed sharply after the strikes. Brent crossed $97 and WTI approached $92, both gaining more than 3%. The IEA has warned that the oil market risks entering a red zone this summer if Hormuz does not reopen, as global stockpiles deplete during peak travel Demand.

Two strikes in five days, a rejected deal, and a regional air defence activation in Kuwait collectively point to the same conclusion: the ceasefire is operational only in name, and the Hormuz premium in oil prices is not going away.