Escalation in US-Iran conflict threatens ceasefire

Hostilities between the United States and Iran escalated on Thursday after U.S. forces struck a drone control facility in Bandar Abbas, Iran, and shot down several attack drones near the Strait of Hormuz. In retaliation, the Islamic Revolutionary Guard Corps targeted a U.S. air base in Kuwait, which confirmed the interception of missile and drone threats. The exchange occurred shortly after reports of a potential 60-day ceasefire extension and shipping normalization deal were publicly downplayed or rejected by U.S. President Donald Trump. While some sources suggested an outline agreement was close, Iranian officials, including negotiator Mohammad Baqer Qalibaf, insisted that no finalized deal exists and that trust depends on tangible actions rather than words. The ongoing three-month conflict, which began on February 28, has resulted in thousands of deaths and significantly impacted global energy markets due to restrictions in the Strait of Hormuz. Financial markets reacted to the volatility, with oil prices falling initially on peace hopes before rebounding sharply following the renewed military engagement. Negotiators remain deadlocked over complex issues including Iran's nuclear program and the easing of international sanctions.