Bahrain, Kuwait, Jordan face renewed Iranian attacks after US hits Iran's south

US forces bombed targets in southern Iran overnight after President Donald Trump said Tehran would pay dearly for the deaths of American soldiers, while Iran targeted US sites in Bahrain, Kuwait and Jordan and a tanker was hit in the Strait of Hormuz.

The exchanges came a day after Yemen's Houthis said they would impose a naval blockade on Saudi Arabia, opening a potential new front in the war and raising the threat to global energy supplies and trade beyond the Gulf.

Despite the escalating cycle of attacks that has all but wrecked an interim peace agreement signed last month, signs that Tehran and Washington want to resume diplomacy kept oil prices in check.

US Central Command said it had completed its latest round of strikes on Iran, saying it hit Iranian military command centers, maritime capabilities, missile and drone launch sites, and air defence systems.

Iran responded with renewed attacks across the Gulf, where recent strikes on desalination facilities have raised concerns about water shortages and underscored the growing threat to civilian infrastructure.

Jordan said it intercepted and destroyed five Iranian drones. 

The United Kingdom Maritime Trade Operations agency said on Tuesday a tanker in the strait reported being struck by an unknown projectile, forcing its crew to abandon the vessel and board a lifeboat.

Oil markets weighed the threat to shipping against reports of diplomatic efforts to contain the conflict, with benchmark Brent crude prices easing slightly in early trading.

The latest phase of fighting has proved to be among the deadliest of the conflict for US forces. US troop deaths rose to 17 over the weekend.

Trump, under mounting pressure at home over rising gasoline prices since the war began, said the latest US strikes on Iran were honouring the deaths of American service members.

The war has killed thousands of people, mostly in Iran and Lebanon. Parts of Lebanon remain under Israeli occupation following attacks on Israel by Hezbollah fighters, who said they were acting in solidarity with Tehran.