The US military launched strikes against Iranian missile storage sites, drone facilities, and coastal radar installations on June 26 after Iran's IRGC struck the Singapore-flagged container ship Ever Lovely with a one-way attack drone while it was exiting the Strait of Hormuz.

Key Highlights

• US Central Command struck Iranian missile and drone storage locations and coastal radar sites on June 26, calling the IRGC's attack on the Ever Lovely a clear ceasefire violation.

• The Ever Lovely, operated by Taiwan-based Evergreen Marine, was hit by a drone on June 25 as it exited the Strait of Hormuz along the Omani coast, with no crew injuries reported.

• The attack came just one week after Washington and Tehran signed a June 17 memorandum of understanding establishing a ceasefire framework while longer-term nuclear and sanctions negotiations continue.

• Iran and Oman have announced plans to hold talks on the future administration of the Strait of Hormuz, while Iran has not formally claimed responsibility for the Ever Lovely strike.

The United States military struck Iranian targets on June 26, responding to a drone attack the prior day on a commercial vessel in the Strait of Hormuz that Washington said represented the most significant test of the fragile ceasefire since its signing. US Central Command said American aircraft targeted Iranian missile and drone storage locations as well as coastal radar sites along Iran's southern coast, near the port of Sirik, in what it described as a direct and proportionate response to the unwarranted aggression against freedom of navigation.

The Ever Lovely, a Singapore-flagged container ship that had been stranded in the Persian Gulf for more than 100 days following the outbreak of the US-Iran conflict in late February, had been in the process of exiting the strait when it was struck. Trade data indicates the vessel was carrying cargo loaded in Iraq. The UK Maritime Trade Operations reported the strike damaged the ship's bridge, though the vessel was able to continue its voyage and all crew members were unharmed.

The incident raised immediate questions about the durability of the memorandum of understanding signed on June 17, under which both sides agreed to lift naval blockades and allow free passage through the Strait of Hormuz while working toward a longer-term agreement on Iran's nuclear program and sanctions relief. The International Maritime Organization temporarily paused its vessel evacuation operation for stranded ships in the region following the attack, before confirming the operation would resume.

Geopolitical risk premiums in energy and defense-linked markets moved sharply in the hours following the incident, with a brief 2% crude oil rebound on June 25 reversing course on June 26 as markets assessed the likelihood of continued shipping normalization. Despite the strike, the US administration publicly confirmed the Strait of Hormuz remained open, with commercial vessel transits continuing through the corridor.