Tehran: The US-Iran conflict has flared up again after a US strike on Iran's Larak Island near the strategically vital Strait of Hormuz.

Iranian state media said two people were killed and several others injured, while Iran responded with missile and drone attacks targeting US-linked military positions in the region.

What happened on Larak Island?

The latest escalation began when the United States carried out strikes against Iranian positions on Larak Island, located in the Strait of Hormuz.

US Central Command said the operation was “limited” and “precise” and targeted Islamic Revolutionary Guard Corps (IRGC) forces that were allegedly preparing to lay mines in the strategic waterway.

Iran gave a different account of the attack.

Iranian state news agency IRNA reported that two people were killed and several others injured in the strike late Sunday. The report, quoting Qeshm Island governor Hossein Amir Teymouri, did not specify whether those killed were military personnel or civilians.

The competing accounts have not been independently verified.

Why did the US target Larak Island?

The US said its forces acted against Iranian personnel who were allegedly preparing to lay mines in the Strait of Hormuz.

The waterway is one of the world's most important maritime routes, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea.

Any attempt to mine the Strait could pose a serious threat to commercial shipping and energy supplies.

Larak Island's location gives Iran a strategically important position close to the waterway and near the Iranian port of Bandar Abbas.

Iran retaliates after US strike

Iran responded to the US operation by announcing missile and drone attacks against American military facilities in the region.

The IRGC said its missile operation targeted US-linked bases in Jordan, including King Hussein and Al Azraq.

Jordan said it intercepted eight missiles following the Iranian attack.

Iran also claimed that it launched attack drones towards an area near Al Minhad Base in the UAE, where it said US military personnel and helicopters were stationed.

The UAE later said it intercepted an Iranian drone over its territorial waters.

The claims regarding the extent of damage from the Iranian attacks have not been independently verified.

Why is the Strait of Hormuz so important?

The latest confrontation has put the Strait of Hormuz back at the centre of the US-Iran conflict.

The narrow waterway is a crucial route for global energy shipments. A major disruption could affect oil and gas supplies, shipping costs and international markets.

The threat of mines is particularly significant because mines can endanger commercial vessels even without a direct attack on shipping.

The latest US strike therefore carries implications beyond the immediate military confrontation between Washington and Tehran.

Conflict returns after a month-long lull

The latest exchange represents a significant escalation after more than a month without major reported fighting between the US and Iran.

The US military said its latest action was aimed at preventing what it described as an imminent threat to shipping.

Iran, meanwhile, has maintained that it does not seek war but has warned that it will respond to attacks.

Iranian President Masoud Pezeshkian said Iran was not seeking conflict but would respond to aggression.

His comments came as he met Prime Minister Narendra Modi on the sidelines of the SCO Summit in Bishkek.

Modi meets Pezeshkian amid escalation

The latest military escalation coincided with Modi's meeting with Pezeshkian in Kyrgyzstan.

The two leaders discussed the situation in West Asia, with Modi reiterating India's support for efforts aimed at achieving lasting peace and stability.

The Iranian president also told Modi that Tehran continued to seek a negotiated solution to its conflict with the United States, according to Iranian state-linked reporting.

The timing of the meeting highlights the diplomatic and security challenges facing India as tensions rise around the Gulf.

The UAE and Jordan face growing risks

The latest attacks also demonstrate how the conflict can spread beyond Iran's immediate territory.

Jordan and the UAE have close security ties with Washington and host or support US military operations, making them potential targets during a wider US-Iran confrontation.

Jordan is particularly exposed because missiles travelling through the region can threaten its airspace even when it is not directly involved in the conflict.

The UAE, meanwhile, is a major regional commercial and financial centre whose security is closely linked to the stability of Gulf shipping routes.

US economic pressure continues

The military escalation is taking place alongside a separate US campaign to increase economic pressure on Iran.

Washington has been targeting financial networks and institutions it alleges help Iran move money internationally or bypass sanctions.

US Treasury Secretary Scott Bessent has warned that further secondary sanctions could follow, with banks expected to remain a major focus.

Secondary sanctions can pressure financial institutions outside the US by threatening their access to the American financial system if they conduct certain transactions involving sanctioned Iranian entities.

What happens next?

The key question is whether the latest exchange remains limited or develops into a broader regional confrontation.

Three areas are likely to remain under close watch:

  • The Strait of Hormuz: Any mining attempt or disruption to commercial shipping could have international economic consequences.
  • US bases across the Middle East: Further Iranian attacks could trigger additional American military action.
  • Sanctions and financial pressure: New US restrictions could further intensify economic pressure on Tehran.

The latest escalation shows how closely military operations, maritime security and economic sanctions are now connected in the US-Iran conflict.

Analysis and explainer

The Larak Island strike is significant because it brings the US-Iran confrontation directly to the Strait of Hormuz, a waterway whose security matters far beyond the two countries.

For Washington, preventing Iran from allegedly laying mines is linked to protecting international shipping. For Tehran, an attack on an Iranian position near the Strait represents another direct military challenge.

The subsequent Iranian strikes and drone activity in Jordan and the UAE also show the wider regional risks. Even countries that are not directly fighting Iran can become involved because of their military partnerships, geography or role in regional logistics.

The conflict is therefore entering another potentially dangerous phase in which a local military strike can quickly trigger a wider regional response.

For India, developments around Hormuz are particularly important because instability in the region can affect energy supplies, shipping routes, trade costs and the safety of Indians living and working in West Asia.