Iran and the U.S. launched fresh missile and drone attacks across the Gulf.
Tehran sruck U.S. military facilities in Bahrain, Kuwait, Oman and Jordan after American strikes on Iranian military targets.
Brent crude rose more than 3% as the escalating conflict and disruption to one of the world's busiest energy shipping routes fuelled concerns over global oil supplies and inflation.
The United States and Iranian forces engaged in fresh missile and drone attacks over the weekend and into Monday, as the conflict expanded across the Gulf, with Tehran targeting U.S. military facilities in multiple countries and reiterating that the Strait of Hormuz remained closed, sending oil prices higher.
Iran's Revolutionary Guards said on Monday they had struck U.S. military facilities in Bahrain and Kuwait, destroyed radar systems in Oman, and hit fuel tanks and ammunition depots at Prince Hassan Air Base in Jordan in retaliation for U.S. strikes.
The U.S. military said it had targeted Iranian air defence systems, coastal radar sites, missile and drone capabilities, and small boats on Sunday using aircraft, naval vessels and drones.
The latest exchanges marked a sharp escalation in both the pace and geographical scope of attacks, further undermining an interim U.S.-Iran agreement signed last month that aimed to reopen the Strait of Hormuz and end the war after another 60 days of negotiations.
In a brief phone interview with Reuters on Sunday, U.S. President Donald Trump referred to the weekend's strikes on Iran. "We're beating them up," he said.
Trump has said he considers the ceasefire over while leaving the door open for further negotiations.
Iran's top negotiator, Mohammad Baqer Qalibaf, struck a similarly defiant tone, posting on X on Sunday: "The era of one-sided deals is OVER. We told you: keep your word or pay the price. Reality is knocking."
The war launched by the United States and Israel against Iran on February 28 has spread across the Gulf, with Iran expanding attacks on U.S. bases in multiple countries. Thousands of people have been killed, mainly in Iran and Lebanon.
The Revolutionary Guards said the only way to restore normal shipping through the Strait of Hormuz was to end U.S. military intervention in the waterway, warning that "continued interference could lead to greater incidents in the global oil and gas sector."
Iran is also seeking to establish a joint mechanism with Oman to manage maritime traffic through the strait, Foreign Ministry spokesperson Esmaeil Baghaei said on Monday, adding that U.S. pressure on Oman had hindered those discussions.
Brent crude rose more than 3% on Monday, although prices remained below the peaks reached earlier in the conflict. Rising energy prices, particularly gasoline, remain politically sensitive for Trump ahead of November's congressional elections.
(inputs from Reuters)
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