The US and Iran are now locked in a direct, accelerating exchange of missile and drone strikes that has shattered a month-old interim agreement and spread damage across at least six Gulf states. US Central Command launched a new wave of strikes beginning at 2100 GMT Sunday, following approximately 140 strikes the previous night. Iran responded by targeting US facilities across the Gulf and declaring the Strait of Hormuz closed "until further notice." The trigger for this latest escalation was Iran's attack early Sunday on a commercial ship in the Strait of Hormuz, which caught fire and forced its crew to abandon the vessel. Iran's Revolutionary Guards announced the strait's closure via state news agency IRNA. CENTCOM countered on X that the strait remained "open to all vessels seeking to lawfully transit" and that US forces were "positioned and prepared to ensure" freedom of navigation. An adviser to Iran's supreme leader said control of the waterway was more important than "dozens of atomic bombs." The collateral damage is no longer hypothetical. Qatar — a ceasefire mediator that had not been targeted since April — reported three people injured by falling shrapnel, including a child, and declared Iran "fully legally responsible." The UAE engaged missiles and drones with its air defenses for the first time since early May. Bahrain intercepted Iranian aerial attacks. Jordan reported missile strikes. Oman, rarely targeted, was hit by drones and summoned Iran's ambassador in protest. Kuwait reported damage to three northern border posts and a drone strike on an offshore oil drilling platform that injured a worker. Iran's foreign ministry condemned the US strikes as "aggressive" and said the attacks had "rendered futile" all diplomatic efforts of recent months. Separately, Iran said talks with Oman in Muscat on Saturday — focused on managing the strait and transit routes — failed because of "overt and covert" US pressure on Oman. Trump told Reuters on Sunday afternoon: "We're beating them up." Iran's top negotiator Mohammad Baqer Qalibaf posted on X: "The era of one-sided deals is OVER. We told you: keep your word or pay the price. Reality is knocking." Iranian state media reported at least 10 "enemy projectiles" hitting Qeshm Island near the strait, and strikes on Farur Island that killed a telecommunications worker and wounded two others. Tehran said it had targeted two ships in Hormuz early Sunday, including the one that caught fire. The US embassy in Oman told nationals in Duqm and Musandam to shelter in place. The structural problem is now visible: the interim US-Iranian agreement signed last month — which aimed to reopen the strait and end the war after 60 days of further negotiations — is functionally dead. Both sides are escalating while claiming the other destroyed diplomacy. The Gulf states that served as mediators and hosts are now absorbing physical damage, which eliminates their capacity to broker peace. Qatar cannot mediate while treating shrapnel injuries. Oman cannot host talks while summoning Iran's ambassador over drone strikes on its territory. What remains is a conflict with no off-ramp and expanding geography. Every Gulf state that takes collateral damage becomes a potential co-belligerent rather than a mediator. The strait itself — through which roughly 20% of global oil transits — is now contested terrain rather than shared infrastructure. Iran treats it as leverage; the US treats it as a freedom-of-navigation problem. Neither framing leaves room for the commercial shipping that actually depends on it.