Iran's top negotiator has declared the country's armed forces have “complete freedom of action” against American aggression, as a fragile interim peace deal collapses under repeated US strikes. The declaration marks a sharp escalation in hostilities that now threaten to engulf the broader region. Main Developments Mohammed Bagher Ghalibaf, Iran's top negotiator, said the country is “in an essential and existential war with America” and has no reason to continue adhering to the June 17 memorandum of understanding. The US launched multiple rounds of air strikes overnight Tuesday and again Wednesday, hitting military targets near the Strait of Hormuz and on Greater Tunb island. Iran's army reported that one attack struck a barracks in Bampour in the country's southeast, killing seven personnel from the 388th Brigade and injuring several others. Iranian media also reported an overnight US attack hit a wheat storage facility in western Khuzestan province, though the US military denied that claim. Read also: 3 reasons xAI's lawsuit against a Grok user marks a legal first The US announced its latest wave of strikes Wednesday at 10:30pm Iranian time (19:00 GMT), as Iranian media reported explosions in or near Bandar Abbas, Chabahar and Ahvaz. Earlier, the US military said it had redirected two commercial vessels as part of a renewed blockade on Iranian ports, which began the night before. Iran's Islamic Revolutionary Guard Corps said it targeted the US Fifth Fleet in Bahrain and a major US military logistics hub in Mina Abdullah, Kuwait. Kuwait's Ministry of Defence reported downing at least four cruise missiles and 21 drones from Iran throughout the day, while Jordan's military said it downed three missiles from Iran. Background The interim peace deal, signed June 17, had been the first significant diplomatic breakthrough between Washington and Tehran in years. Ministry of Foreign Affairs spokesman Esmaeil Baghaei said Iran abandoned its commitments under the memorandum because the US reneged on its side of the agreement. “Our commitments remain in effect only as long as the other side fulfils its pledges,” Baghaei said. Reporting from Tehran, Al Jazeera's Resul Serdar noted that the latest escalation makes a return to negotiations “extremely difficult.” However, he added that “if the Americans commit to the articles of the memorandum of understanding, then the Iranians say they're open to engaging diplomatically.” Gulf Cooperation Council Secretary-General Jasem AlBudaiwi condemned the latest Iranian attacks on Bahrain, Kuwait and Jordan, calling them “treacherous” and saying they “reveal Iran's determination to drag the region into further chaos and instability.” Zeidon Alkinani, founding director of the Arab Perspectives Institute, warned that Iran's continuing attacks on its neighbours have tested Gulf states' patience, which could “fall apart very soon.” Why It Matters The collapse of the peace deal and the intensifying hostilities threaten to draw in multiple regional players. The renewed US blockade on Iranian ports, combined with Iran's retaliatory strikes on Gulf states, risks a broader conflict that could disrupt global shipping through the Strait of Hormuz. Gulf states, which had opposed the US-Israel war on Iran and advocated for diplomacy, now face direct attacks from Tehran. US President Donald Trump warned Tuesday that attacks would intensify if Iran's leaders did not return to negotiations, even threatening to “knock out” Iran's power plants and bridges. When asked for a firm deadline Wednesday, Trump declined, saying: “I don't like giving deadlines, but they pretty much know; they know the story… they better behave.” What's Next Ghalibaf said Iran is still balancing diplomacy with military action in pursuit of its national interest, stating that while Iran has “never welcomed war… we must always be prepared for battle.” He added that Iran must “use the tools of diplomacy and negotiation to achieve and solidify our national interests.” Tehran currently has no plans to engage in further talks with Washington and is focused solely on defending the country. The US has not indicated whether it will continue the blockade or launch additional strikes, leaving the region in a precarious state of low-intensity conflict with no clear off-ramp.