Since Islamabad MoU: What’s changed for the US, Iran and the Gulf?

What the report says

Al Jazeera reports that the US-Iran conflict has sharply escalated since a June 17 memorandum of understanding signed in Islamabad unravelled. As of July 20, the United States had carried out attacks on Iranian defence and maritime targets for a ninth consecutive night, while Tehran responded with strikes that triggered alarms in Gulf states and Jordan, where US bases are located. Both governments accuse the other of breaching the MoU; US President Donald Trump says the truce is finished, and Iran says it will no longer follow it.

A central consequence is the renewed closure of the Strait of Hormuz, a key route for global oil and gas in peacetime. Al Jazeera says the MoU had briefly enabled the waterway to reopen and helped ease oil prices, but Iran has now shut it again while the US has renewed a naval blockade. Analysts cited by the outlet said this threatens Gulf economies beyond energy exports, including tourism, aviation, logistics and investment, while Iran faces tighter physical limits on oil sales, pressure on the rial and worsening inflation.

Militarily, Al Jazeera reports that 17 US service members have been killed since the war began, including three since fighting resumed. Iran says it has hit US-linked facilities in Kuwait, Bahrain and Jordan, though Al Jazeera said it could not verify the extent of damage. Gulf countries have also had to use air defences, and Kuwait’s power and desalination facilities were reported hit.

The report frames control of Hormuz as a major strategic issue. Washington says its strikes aim to reduce Iran’s ability to disrupt shipping, while Tehran views the strait as crucial leverage that may pressure Gulf governments to push the US toward negotiations.