US military launches strikes against Iran, Central Command says

After a day in which huge crowds mourned Iran's slain Supreme Leader Ayatollah Ali Khamenei in the holy city of Qom, U.S. Central Command announced it began a series of strikes intended to impose what it called heavy costs. "Iran’s demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire," Central Command said on social media.

Iranian media reported explosions early Wednesday local time in the southern port city of Sirik, on Qeshm Island and in Bandar Abbas. No civilian deaths were reported, but several people were injured by shrapnel from an "enemy projectile" that hit a commercial pier in Sirik, according to an Iranian state TV reporter. The reports said strikes also hit fishing piers in Sirik and in Bandar Abbas, where several fishing boats were set ablaze.

A U.S. official told Reuters that strikes targeted Iranian air defense systems, coastal surveillance systems, surface-to-air missiles, anti-ship cruise missiles and drone launch sites.

The incidents were the latest threat to the ceasefire agreement the U.S. and Iran struck last month, pausing the conflict that started in February with U.S. and Israeli strikes across the Islamic Republic. In a potentially major blow to that agreement, Washington moved Tuesday to withdraw a key concession that allowed Iran to sell oil on international markets.

Oil prices rose more than 3% after the U.S. announced the move.

Work continues toward final agreement

A U.S. official said earlier negotiators continued to work in good faith toward a final agreement with Iran. But control of the strait gave Tehran immense leverage, effectively allowing it to force a stalemate with the world's most powerful military. Analysts say Tehran uses attacks on ships to underscore that leverage as it negotiates a long-term peace deal with the U.S.

Under the interim U.S.-Iran agreement, the U.S. Treasury issued a June 22 general license to allow the sale of crude oil and petrochemical and petroleum products of Iranian origin through Aug. 21. In revoking that license Tuesday, it gave Iran until July 17 to wind down any transactions.

Iran's Foreign Ministry condemned the move as a breach of the framework agreement to end the war and said Washington would bear responsibility for the consequences.

The ministry said early Wednesday that Iran would take any measure it deemed necessary to safeguard its interests and national security.

Qatar blamed Iran for attacking the vessels, including the huge Qatari liquefied natural gas tanker, the Al Rekayyat, which reported being struck overnight by a drone that caused a fire in its engine room. The crew were safe and being evacuated.

A Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, also was damaged off Oman, maritime security sources said. The cause was not immediately clear.

Qatar's foreign ministry said it summoned Iran's deputy ambassador and handed him a protest note following the attack on the tanker.

Iran's foreign ministry said Qatar's accusations were perplexing and that Tehran was diligently fulfilling its commitments but asserted that commercial vessels faced risks for using routes not coordinated with Iran.

A second U.S. official, speaking on condition of anonymity, said initial indications were that Iran fired at three commercial vessels.

Hundreds of thousands take to the streets in Qom

Iran's clerical rulers aim to install a permanent system to collect fees in what would amount to a huge shift of the balance of power in a region where Washington long acted as guarantor of security.

At home, the leadership used the mourning that began last week to show its control after Khamenei was killed with his daughter, granddaughter, son-in-law and daughter-in-law on the war's first day.

The caskets of the slain leader and family were driven through the streets of the seminary city of Qom on Tuesday, where many hundreds of thousands of people carried flags and banners comparing Khamenei to revered Shi'ite martyrs.

In chants they vowed to avenge Khamenei. Some bore placards and banners reading "KILL TRUMP."

Later Tuesday Iranian state media showed what it said was footage of an airplane carrying Khamenei's coffin at the airport of the Shi'ite holy shrine city of Najaf in neighboring Iraq.

Iranian President Masoud Pezeshkian, who was in Iraq to participate in the funeral ceremonies, left for Iran after U.S. strikes on southern Iran, state television reported.

Trump: 'Make a deal or we're going to finish the job'

The ceasefire was intended to provide a 60-day window for negotiations on a permanent agreement, but indirect talks in Qatar ended last week with no sign of headway.

U.S. President Donald Trump repeatedly threatened to resume bombing, most recently on Monday when he told reporters in the Oval Office: "We're either going to make a deal or we're going to finish the job. … We can knock down their bridges in one hour, we can knock out their energy supply."

Iran's Foreign Minister Abbas Araghchi said that under the terms of the interim ceasefire memorandum, negotiations on the final deal would "not commence if threats continue."

In launching the war four months ago, Trump said his aims were to destroy Iran's nuclear and missile programs, end its ability to threaten its neighbors and create conditions for Iranians to topple their leaders.

None of those goals has been met, though Washington says a permanent deal will halt what it says is an Iranian program that could make a nuclear bomb, which Iran claims it never sought.