US strikes kill 11 in Iran as diplomatic fallout widens
Fresh US military attacks on Iranian territory have triggered a spike in oil prices and led Peru to sever ties with Tehran, marking a significant escalation in the ongoing regional standoff.
Iranian state media reported that 11 people were killed in two separate US military strikes, signalling a sharp intensification of hostilities following a month-long lull in the conflict. The attacks occurred in the southern Sirik county and the southwestern province of Khuzestan, with the latter involving US missiles targeting three specific locations.
According to the Iranian Red Crescent, the strike at a wedding venue in Sirik county killed four people, including a child, and wounded more than 50 others. In Khuzestan, the Deputy Governor for Security and Law Enforcement Affairs stated that the missile attack left seven people dead and eight injured. These incidents follow earlier US strikes on Iranian military targets and an island in the Strait of Hormuz, which prompted Tehran to fire missiles and drones at sites across the Middle East.
The military escalation has had immediate economic repercussions, with crude oil prices jumping more than two percent and spiking around 10 per cent for the week. Stock markets fell and bond yields held at multi-decade highs as investors ramped up rate hike bets in response to the fresh flare-up in tensions.
Diplomatic relations have also taken a hit, with Peru’s Foreign Ministry announcing the severance of ties with Iran. The Peruvian government cited Tehran’s role in inciting an escalation of conflicts and hindering maritime transit in the Strait of Hormuz, a waterway Iran has blockaded since the war began on 28 February 2026.
In a related development, Israeli special forces from the Shin Bet intelligence agency captured a Hamas militant leader in a raid in Gaza City. The operation, conducted in a Hamas-controlled area, resulted in the capture of Moin Al-Arabeed, the chief of Hamas’ internal security service, while Israeli air strikes meant to protect the troops killed four Palestinians.
The current round of military action comes after weeks of relative calm during which peace talks stalled and Washington stated it would aim for the "economic asphyxiation" of the Islamic Republic. The tit-for-tat exchanges have now extended to American interests in several regional countries, further complicating the geopolitical landscape.
