DUBAI, United Arab Emirates (AP) — Iran targeted American military sites in the Gulf on Wednesday after the U.S. launched strikes on several places in Iran and reinstated sanctions on its oil sales. Washington said it was responding to Iranian attacks on ships in the Strait of Hormuz.

The crossfire raised fears that the war in Iran could reignite, and U.S. President Donald Trump fueled those concerns by saying that the interim agreement to pause fighting was “over,” although he added that he would allow negotiations to continue.

Attacks have repeatedly threatened the shaky ceasefire, but Trump's comments add new uncertainty, and oil prices shot up after he spoke. A renewed conflict could engulf the wider Middle East and would likely again halt energy shipments through the strait that are crucial to the global economy.

“For me, I think it’s over,” Trump responded when asked about the status of the ceasefire. He added that U.S. representatives can continue negotiations, but he cast doubt on the outcome. “They can talk, but I think they’re wasting their time,” he said.

Negotiations to reach a final deal had been due to start after the dayslong funeral for Iran’s Supreme Leader Ayatollah Ali Khamenei, who was killed Feb. 28 in the war’s first moments. The funeral, which ends Thursday, was supposed to be a period of lower tensions.

The talks are meant to focus on the toughest matters, including fully reopening the strait and rolling back Tehran’s disputed nuclear program.

“The era of bullying and extortion is over,” Iran’s Parliament Speaker Mohammad Bagher Qalibaf wrote on X. “It leads nowhere. We don’t fold.”

Overnight US strikes target Iran

The U.S. military’s Central Command said American forces launched strikes “to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway.”

It said it hit Iranian targets including air defense systems, radars and over 60 small boats used by Iran’s paramilitary Revolutionary Guard.

Those boats have been key to threatening ships in the strait, through which a fifth of the world’s traded oil and natural gas passed before the war. Iran’s ability to bring shipping in the waterway to a near halt during the war proved its greatest strategic advantage as rising prices for energy supplies, fertilizer and food put pressure on the U.S. to make a deal. On Wednesday, the price of Brent crude, the international standard, spiked over 6% after Trump’s comments.

The U.S. military remains “prepared to hold Iran accountable when the agreement is not adhered to or obeyed,” it added, saying this round of attacks had ended.

Iranian state media reported explosions in several locations, including in Bandar Mahshahr, where a Guard member was killed. It also reported attacks on Bushehr, home to Iran’s nuclear power plant complex.

On Wednesday morning, both Bahrain, home to the U.S. Navy’s 5th Fleet, and Kuwait, home to U.S. Army forces, sounded missile alerts. The Guard issued a statement acknowledging targeting U.S. military installations in both countries.

Kuwait said it intercepted two ballistic missiles and 13 drones launched by Iran. It Electricity Ministry said a number of lines were out of service after shrapnel fell on them.

A similar spate of Iranian attacks on shipping and U.S. retaliatory strikes occurred late last month, which similarly drew Iranian attacks on Bahrain and Kuwait. Wednesday’s strikes came as Trump was in Turkey for a summit of the NATO military alliance.

Anwar Gargash, a senior diplomat in the United Arab Emirates, called Iran’s attacks on Bahrain and Kuwait “a clear indicator that Tehran remains incapable of committing to the requirements of de-escalation and turning the page on war.”

US revokes the license for the sale of Iranian oil

Before the strikes, the U.S. revoked a license that authorized the sale of Iranian oil as part of the interim deal. That paused U.S. sanctions and allowed Iran to conduct oil sales openly in U.S. dollars for the first time in years. Iran long had been suspected of selling sanctioned crude at below-market prices to China.

The decision came after the strikes on shipping. One tanker was off the coast of Oman when it was hit and caught fire, the United Kingdom Maritime Trade Operations center said. Iranian state television said the tanker came under attack after ignoring warnings but did not directly claim the assault.

Majed al-Ansari, a spokesperson for the Qatari Foreign Ministry, said the tanker was carrying Qatari natural gas and called the strike an “unacceptable attack” on international navigation and global energy security. He said Qatar, which has been a key mediator alongside Pakistan in the talks, holds Iran “fully legally responsible.”

The other two ships sustained some damage, but no one was injured, and both continued on their way, the U.K. agency said.

Iran and the United States agreed as part of the interim deal to allow ships to pass through the strait without paying charges for 60 days. But Tehran has insisted it must control the vessels’ routes and vowed to later charge fees for passage. That would upend decades of practice in the waterway. The ships attacked Tuesday all appeared to be using a route close to Oman’s shore, rather than one ordered by Tehran.

The U.S. and many Gulf Arab states say they will not agree to Iran charging for passage through the strait.

Mourners attend Khamenei's funeral services in Iraq

Funeral ceremonies for Khamenei were held Wednesday in the Iraqi city of Najaf. Attending the services are Iranian President Masoud Pezeshkian and other Iranian as well as Iraqi officials, including Prime Minister Ali Falah al-Zaidi. There will be funeral prayers later at the Imam Hussein shrine in Karbala as well.

Khamenei’s son, Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei, has yet to make an appearance at the ceremonies, which began Saturday in Tehran. He is believed to be in hiding after reportedly being wounded in the airstrike that killed his father.

Khamenei’s body will then be returned to Iran to be buried Thursday at the Imam Reza shrine in Mashhad, his birthplace.

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Kim reported from Ankara, Turkey. Associated Press writers Nasser Karimi in Tehran, Iran; Qassim Abdul-Zahra in Najaf, Iraq; and Collin Binkley in Washington contributed.