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EUROPES The European Report
European Edition Saturday, 18 July 2026
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Hormuz conflict kills US troops, threatens European oil supply

Hormuz conflict kills US troops, threatens European oil supply

Iranian strikes killed two US troops in Jordan and shattered an interim ceasefire, plunging the critical Strait of Hormuz back into conflict and threatening global oil supplies.

Two US service members were killed and one is missing after Iranian ballistic missile and drone attacks on a base in Jordan. The deaths bring the total number of US troops killed in the conflict to 16, with more than 430 wounded.

The strikes effectively destroy an interim ceasefire signed roughly a month ago to permanently end the fighting. They also mark the first US fatalities from direct Iranian fire since the war began. For European markets, the immediate concern is the Strait of Hormuz, the narrow waterway handling a fifth of global shipping. Tehran shuttered the strait to traffic on 28 February and is demanding fees from vessels, a move that has already sent oil prices soaring.

Despite the recent ceasefire, Iranian forces fired on ships attempting to cross the passage in recent days. Crossings have consequently dropped to a three-week low, creating a bottleneck for energy supplies crucial to European industry. Tehran maintains the strait must be under its sole control, rejecting its decades-long status as an international waterway.

Iran’s supreme leader, Mojtaba Khamenei, warned the US would face “unforgettable lessons” if strikes continue. In a statement read on state television, Khamenei declared the ceasefire agreement signed by US President Donald Trump as “worthless and invalid". A negotiator subsequently announced Tehran was suspending its commitments to the deal entirely.

Washington has responded with a seventh consecutive night of strikes, targeting military logistics, underground weapons storage, and maritime capabilities. US Central Command reported hitting sites across Iran, while Iranian state media said airstrikes destroyed a desalination plant in Hormozgan province, cutting off water to 10,000 people, and damaged another on strategic Qeshm Island. Three bridges were hit, including one leading to Bandar Abbas, Iran's main port near the strait's narrowest point.

The conflict is spilling over into Gulf states that host US bases and supply Europe with energy. Kuwait bore the brunt of Iran's retaliation on Saturday, with strikes injuring people at an oil facility and sparking a fire at a desalination plant that forced power generation units offline. The nation, which relies on desalination for 90 percent of its drinking water, briefly closed its airspace, while defence systems in Iraq, Jordan, Bahrain, and Saudi Arabia intercepted incoming fire.

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