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Today's takeaways
• Blockade underway: The US has reimposed its naval blockade of Iranian ports, according to a US military statement. The US previously enforced a blockade between April and June.
• Fourth day of strikes: Attacks were reported across the region as the US launched and completed another day of strikes on Iranian targets. Iranian state media also reported Tehran struck US military assets in Jordan.
• US warning: In a TV interview, President Donald Trump warned the US would strike bridges and power plants next week unless Tehran returns to the negotiating table. This is not the first time he’s made such a threat, using blustery warnings as a negotiating tactic.
• Trump rescinds toll decision: Earlier, he announced the US will not impose a 20% reimbursement fee on cargo moving through the Strait of Hormuz, saying it will be replaced by Gulf state investments in the US.
China misses growth target for first time since Covid as Iran turmoil roils global trade
China is struggling to offset economic challenges both at home and abroad, as its economy grew at a slower-than-expected pace in the second quarter of the year.
On Wednesday, China’s National Bureau of Statistics said the economy grew 4.3% in the quarter ending June 30, compared to the same period a year ago.
The figures, which fell short of expectations for 4.5% growth, are a rare admission of economic weakness for China, which has long worked to prop up industrial activity with infrastructure investment and exports.
Higher energy costs during the war in Iran have helped lift China out of one of its longest periods of deflation, as the nation struggles with industrial overcapacity and sluggish domestic demand.
However, the continuation of attacks between the US and Iran could pose challenges to China’s economy. While China has buffered itself from the broader supply shocks, more expensive fuel and commodities could weigh on consumer sentiment and disrupt manufacturing.
Read more about China’s economic growth here.
US completes another round of strikes against Iran
The US completed another round of strikes against Iran at 10 p.m. ET, hitting dozens of military targets near the Strait of Hormuz and coastal areas, US Central Command said in a social media post.
This is the fourth consecutive night the US has conducted strikes against Iran. Earlier today, the US resumed its naval blockade of ships going to and from Iranian ports.
Iranian drone appears to strike warehouse in Kuwait, video shows
Video geolocated by CNN appears to show an Iranian drone striking an already-burning warehouse in an industrial area near Mina Abdullah in Kuwait.
Iran’s revolutionary guards claimed early Wednesday local time that they had struck a US Army logistics and support center located in Mina Abdullah. They said the building was “set on fire and destroyed.” It’s not clear if there is any US link to the building seen on fire in the video. CNN has requested comment from US Central Command on the Iranian claim.
In the video, emergency crews are seen responding to the pre-existing fire at the site at the moment of the blast.
Late Tuesday local time, the Kuwait Fire Force said they had extinguished a blaze “caused by a hostile Iranian aerial aggression,” the official Kuwait News Agency reported, without listing a location for the fire.
CNN geolocated the video by matching it to high-resolution satellite imagery of an industrial park near the Mina Abdullah area. A police car seen in the foreground is also consistent with a type used by the Kuwait Police Force. Data from NASA’s Fire Information Resource Management System also showed heat signatures coming from the area of the apparent strike.
Rubio condemns Iran's "unacceptable" strikes on Jordan
US Secretary of State Marco Rubio condemned Iran’s latest strikes on Jordan, calling them “unacceptable” in a Tuesday meeting with the country’s foreign minister Ayman Safadi in Washington, DC, according to a State Department statement.
Iran has repeatedly targeted military infrastructure in Jordan in recent days as fighting with the US has escalated. The Iranian Army said it had launched new drone strikes on the Al-Azraq Air Base in Jordan, where US military assets are based, early on Tuesday morning local time.
Rubio and Safadi discussed a range of issues in their Tuesday meeting, “including the Iranian regime’s ongoing attacks on shipping and against countries in the region,” spokesperson Tommy Pigott said.
Rubio also thanked Safadi for Jordan’s “important role in advancing regional security,” Pigott said.
Water bottling facility near Iran-Iraq border damaged, Iranian state media claims
A water bottling plant in Iran was damaged in what state media said was an enemy attack.
The mineral water production facility in Dehloran county, near the border with Iraq, was hit by three “enemy projectiles,” state news agency IRNA reported.
The attack in the early hours of Wednesday did not cause any casualties but damaged the factory’s equipment, said Morad Yeganeh, the region’s governor, IRNA reported.
The report did not specify who was believed to be responsible for the strike.
Yasha Saebi contributed reporting.
Kuwait responds to "hostile drone threats" while sirens sound in Bahrain
The Gulf nations of Kuwait and Bahrain have warned their citizens of incoming threats, just hours after the US reimposed its naval blockade of Iranian ports on Tuesday night.
Kuwait’s military it was responding to drones approaching from Iran, saying that “any explosion sounds that may be heard are the result of the Air Defense systems intercepting hostile attacks.”
Bahrain’s interior ministry urged citizens to remain calm and head to safety as sirens have been sounded.
Iran launched multiple strikes at Bahrain on Tuesday, triggering sirens at multiple times. Iran’s revolutionary guards claimed to have “destroyed” the control center for US unmanned boats in an attack on Bahrain, the semi-official Fars News said.
Earlier in the day, the European Union Aviation Safety Agency (EASA) directed airlines to avoid airspace over Bahrain, Qatar, Kuwait, the United Arab Emirates and a swath of water over the Gulf of Oman as the conflict between the US and Iran intensifies.
US “holding Iran accountable” after commercial vessel crew members killed, military says
Iran has targeted civilians by striking seven commercial ships in the last week — leaving nearly a dozen crew members killed, missing or injured, the US military said Tuesday.
Cooper’s statement comes shortly after President Donald Trump warned that the US would strike Iranian infrastructure next week, including bridges and power plants, unless Tehran returns to the negotiation table.
Trump also said the US strikes on Iran will “continue until I say it’s enough.”
US launches more strikes while re-imposing blockade on Iranian ports. Here's the latest
US forces have been helping defend Kuwait from a steady stream of Iranian retaliatory attacks on Tuesday, including by using Patriot missile systems that are part of a strained US stockpile, according to two US officials.
Four members of Kuwait’s armed forces were wounded by an Iranian attack on a Kuwaiti naval vessel, the country’s Defense Ministry said.
The US military also launched its fourth consecutive day of strikes on Iranian targets, according to US Central Command. Iran’s state-run Islamic Republic News Agency said the port city of Bandar Abbas and several locations near Sirik were hit.
Here’s what else you should know:
- Reimposed blockade: The US military’s naval blockade of ships going to and from Iranian ports resumed at 4 p.m. ET, US Central Command said. The US previously enforced a blockade between April and June.
- Iranian deaths: A US strike in southern Iran killed three members of a park ranger’s family, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said.
- Interview on Fox News: President Donald Trump warned that the US would strike bridges and power plants in Iran “next week” unless Tehran returns to the negotiating table. It’s not the first time Trump has threatened to strike power plants and bridges in Iran, and he’s frequently used aggressive and blustery threats as a negotiating tactic without following through. Trump also said Iran won’t “have anybody left” if it doesn’t make a deal.
- Iran’s stance: Iran’s deputy foreign minister, Kazem Gharibabadi, said that Tehran has “no obligations” to the 14-point agreement with the US that was reached last month.
- Defense policy package: Senate Democrats blocked the annual defense policy package, a must-pass piece of legislation that usually passes with large bipartisan support, amid their objections over the war in Iran.
- Frozen cryptocurrency: The Trump administration has frozen more than $130 million in cryptocurrency it says is linked to Iran.
CNN’s Mohammed Tawfeeq, Eyad Kourdi, Zachary Cohen, Pamela Brown, Davis Winkie, Morgan Rimmer, Hira Humayun, Yasha Saebi, Haley Britzky, Mohammed Tawfeeq, Kit Maher and Jennifer Hansler contributed reporting.
House eyes key vote next week on defense spending bill, including funding for Iran war
The US House of Representatives will vote next week on a budget resolution that will set the stage to pass President Donald Trump’s third agenda package, which is likely to include money for the war with Iran, according to House Majority Leader Steve Scalise.
While the details of the bill are still being ironed out, GOP leaders are aiming to use the legislation to pass funding for the Iran war, address some of Trump’s desired changes to federal election laws, and more.
The administration has requested around $87.6 billion to cover funding for the war and other Pentagon priorities.
House Speaker Mike Johnson defended spending for the Iran war when pressed by CNN on Tuesday.
He sidestepped a question on whether Congress must also authorize the war in Iran. The speaker has largely defended the president’s ability to engage in hostilities with Iran without congressional approval.
Iranian army claims it struck US military assets in Jordan
Iran’s army claims to have struck US military assets at the Al-Azraq Air Base in Jordan, according to Iranian state news agency IRNA.
It alleged that Iranian attack drones struck an area where F-18 fighter jets were stationed, an accommodation building, and a large equipment hangar that IRNA said belonged to the US army.
F-18 fighter jets are normally on aircraft carriers and not on bases in the Middle East.
CNN cannot independently verify the claim. It has reached out to US Central Command (CENTCOM) for comment. Iran’s army and state media have repeatedly made claims about successfully targeting US assets that have proven to be untrue.
“These operations will continue until final victory is achieved,” IRNA cited the Iranian army as saying.
Iran previously targeted Al-Azraq Air Base last week, when it claimed to have destroyed F-35 hangars.
Iran’s latest attacks on US military interests in the region come as the US has reimposed a naval blockade on Iranian ports.
Trump says Iran will not have “anybody left” if it doesn't make deal
President Donald Trump upped his pressure on Iran to make a deal with the US on Tuesday, saying the country won’t “have anybody left” if it doesn’t.
“You better make a deal,” Trump told Fox News’ Trey Yingst in an interview, adding, “You’re not going to have anybody left.”
The president went on to say that the US is “being very careful with the civilian population,” before repeating, “But I said, you better make a deal. You’re not going to have anything left.”
Trump said that message to Iran was conveyed during the latest communication between his representatives and Tehran, which he said took place “about an hour ago.”
Asked if he thinks Iran will make such a deal, Trump told Yingst, “They should. I don’t know if they will or not.”
US freezes $130 million in cryptocurrency allegedly linked to Iran
The Trump administration has frozen more than $130 million in cryptocurrency it says is linked to Iran, according to Treasury Secretary Scott Bessent, as the United States once again seeks to ratchet up pressure against Tehran.
The frozen cryptocurrency comes as the memorandum of understanding between the US and Iran meant to end the war has collapsed. The administration has imposed a series of sanctions in recent days and has also escalated military action against Iran, launching another set of airstrikes on Tuesday.
The Treasury Department on Tuesday imposed sanctions on several digital wallets said to be linked to the Central Bank of Iran, leading to the freeze of the assets. The department also sanctioned more than 50 targets allegedly tied to an Iranian sanctions evasion network.
A source familiar with the matter said Tether, a digital currency company that facilitates crypto transactions around the world, was involved in freezing the assets.
In April, the administration froze $344 million in cryptocurrency allegedly linked to Iran.
Bessent said in a post on X the administration will “continue to aggressively follow the money and deny the Iranian regime access to the proceeds of its illicit revenue schemes.”
Heavily sanctioned regimes like Iran, Russia and North Korea have increasingly turned to cryptocurrency, which is less regulated than the traditional banking system, to generate revenue and skirt sanctions.
This post has been updated with comments from Bessent.
Trump threatens to strike Iranian power plants and bridges "next week"
President Donald Trump warned that the United States would strike bridges and power plants in Iran “next week” unless Tehran returns to the negotiating table.
“We’re going to hit them very hard tomorrow night. We’re going to hit them very hard the night after, and then next week it gets really bad for them, because next week comes the power plants. Next week comes the bridges. We’re going to knock out all their power plants. We’re going to knock out all their bridges unless they get to the table and negotiate,” Trump told Fox News in an interview Tuesday.
It’s not the first time Trump has threatened to strike power plants and bridges in Iran, and he’s frequently used aggressive and blustery threats as a negotiating tactic without following through. Iran and US representatives are still talking, but the Trump administration has said they can’t move forward on negotiations while Iran limits traffic in the Strait of Hormuz.
Retired Brigadier Gen. Mark Kimmitt noted on CNN’s Erin Burnett that “bridges and infrastructure that are primarily being used to support military forces are legitimate military targets.”
“I didn’t hear anything about civilian infrastructure. I didn’t hear anything about civilian bridges, so let’s hope we’re going to stay focused on the military targets,” Kimmit added.
Trump said strikes on Iran, which have continued for the fourth consecutive day, since the implosion of a memorandum of understanding will “continue until I say it’s enough.”
The president also declined to rule out calling in ground troops to Iran, but said “I don’t want to do that.”
“Sometimes you need a ground campaign, but we have other people that will do the ground campaign for us,” he said. He didn’t specify other countries that had offered to send troops.
Iran says US strike in Hormozgan killed three members of park ranger's family
A US strike in southern Iran killed three members of a park ranger’s family, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tuesday.
Baghaei said the strike hit an environmental protection post and ranger station in the village of Seyyed Jowzar in Hajjiabad county, Hormozgan province, on Tuesday morning.
CNN cannot independently confirm Baghaei’s claims. It has reached out to US Central Command for comment.
Iran’s PressTV reported that the ranger was on duty at the time of the strike but survived unharmed. It said his two sons and a daughter-in-law were killed.
“The list of American crimes against Iranians grows longer every day, and with each passing day the United States reveals another layer of its hostility toward Iran,” Baghaei said.
“Each new crime further strengthens the resolve of Iranians to pursue justice and to seek the trial and punishment of those responsible for ordering and carrying out these acts,” he added.
Explosions in southern Iran as US launches more airstrikes
US airstrikes have hit several sites in southern Iran, according to Iranian official media.
Iran’s state-run Islamic Republic News Agency (IRNA) said the port city of Bandar Abbas and several locations near Sirik were hit. The report came soon after the US military said it had launched another set of airstrikes against the country ahead of the reimposition of its naval blockade.
CNN has reached out to US Central Command for comment.
IRNA reported impacts in the eastern part of Bandar Abbas and several blasts between the city of Sirik and the village of Tahrouyi. It said a location near Sirik was hit at around 11 p.m. local time (3:30 p.m. ET) by “American projectiles.”
IRNA later said Hengam Island, another Persian Gulf island just south of Qeshm Island, was hit by US projectiles.
All the sites are in Hormozgan province near the strategic Strait of Hormuz.
US naval blockade of Iranian ports goes into effect
The US military’s naval blockade of ships going to and from Iranian ports resumed at 4 p.m. ET, US Central Command said in a post on X.
The blockade restarts a day after President Donald Trump said it would be reinstated and the US would act as the “guardian” of the Strait of Hormuz.
US Central Command reaffirmed the deadline in a post on X minutes before it was set to go into effect, adding that the US was carrying out more strikes against Iran on capabilities around the strait.
Trump said Monday that the US would charge commercial shippers 20% of the value of their cargo to reimburse the US for “providing safety and security” in the strait. But he reversed course on Tuesday, saying Arab states in the Persian Gulf would make “Trade and Investment Deals … into the United States.”
The US previously enforced a blockade on Iranian ports earlier in the war for roughly two months, between April and June. The enforcement operations stretched from the Middle East to the Indian Ocean thousands of miles away.
Iranian official: We have "no obligations" to agreement with US
Iran’s deputy foreign minister, Kazem Gharibabadi, said Tuesday that Tehran has “no obligations” to the 14-point agreement with the US that was reached last month.
“The core of the Islamabad memorandum of understanding concerned ending the war — an immediate and permanent cessation of the war and, in effect, of military operations against the Islamic Republic of Iran — as well as on all other fronts, including Lebanon,” he said. He referred to Israeli attacks against the Iranian-backed Hezbollah militant group in Lebanon, which have continued despite a truce agreed by Israel and Hezbollah as part of the Iran ceasefire framework.
Gharibabadi said that it was “unreasonable and baseless” to therefore expect Iran to uphold its commitments under the agreement, such as reopening the Strait of Hormuz to shipping traffic.
The deputy foreign minister said that Iran would not initiate a request for negotiations with the US, blaming Washington for causing the breakdown of the ceasefire.
“If the United States believes that by intensifying pressure and military actions against Iran it can force the Islamic Republic to request negotiations, it is gravely mistaken,” he said.
US Senate Democrats block annual defense policy package over the Iran war
Senate Democrats on Tuesday blocked the annual defense policy package, a must-pass piece of legislation that usually passes with large bipartisan support, amid their objections over the war in Iran.
The vote on the National Defense Authorization Act, or NDAA, was 50-46.
There are still several months until the deadline to pass the package, but the Senate’s inability to advance the measure shows how deep divisions over the war could affect policy and funding for the Pentagon.
Democratic Sen. Richard Blumenthal, a senior member of the Armed Services Committee, told reporters earlier Tuesday that he sees the package as analogous to backing the war with Iran.
“I think it reflects a decision to continue funding the war, and there’s been no accountability on the part of this administration,” he said. “Before I vote on the NDAA, I want to see the administration come forth with the facts about what its strategy is, as well as its end game in Iran — but basically, approval from Congress as it must do under the War Powers Act.”
Sen. Tammy Duckworth, another Democrat on the panel, had warned she would not vote to advance the bill unless it included her amendment to halt additional funding for offensive actions in Iran.
“Simply throwing more money at an out-of-control military operation is not strategy. It’s a recipe for a forever war,” she said in a statement Tuesday morning. “The stakes couldn’t be higher, and I cannot support a defense authorization bill that doesn’t include my amendment to end this illegal war.”
US military launches additional strikes ahead of commencing blockade
The US launched another set of airstrikes against Iran on Tuesday ahead of the reimposition of its naval blockade, according to a US military statement.
“At 3 p.m. ET today, US Central Command forces began launching an additional round of strikes against Iran to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz,” CENTCOM said in a statement posted to X. It added that the strikes were occurring as troops “prepare to resume the naval blockade against Iranian ports and coastal areas.”
The scope and scale of the strikes were not immediately clear. The US blockade, barring ships from passing through the Strait of Hormuz to access Iranian ports, is due to commence at 4 p.m. ET.
