DUBAI, United Arab Emirates (AP) — The United States intensified its strikes on Iran Thursday, hitting targets farther north and firing into a ship the U.S. accused of trying to break its naval blockade on the Islamic Republic. Iran retaliated by launching missiles and drones at U.S. allies in the region, and warned its attacks may escalate.

The interim ceasefire agreed to last month has collapsed, and the region risks tipping back into all-out war after days of back-and-forth strikes by the U.S. and Iran as they wage for control over the Strait of Hormuz. Iranian officials say U.S. strikes have killed more than 35 people and wounded over 300 others.

For the first time in this latest round of violence, strikes also reached into areas around Iran’s capital, Tehran, showing a widening set of targets for the Americans.

When the U.S. and Israel launched the war on Iran on Feb. 28, Tehran effectively closed the strait to shipping traffic, a move that sent the price of oil, fertilizer and many other goods soaring far beyond the region and gave Iran major leverage in negotiations.

Col. Ebrahim Zolfaghari, a spokesperson for the Iranian military’s Khatam al-Anbiya Central Headquarters, threatened that Iran could launch widespread attacks on “all the infrastructure in the region” if the U.S. acts on President Donald Trump 's repeated warnings that America could hit Iranian bridges and power plants.

“Under no circumstances and in no way will we allow America, as a foreign and extraregional country, to interfere in the Strait of Hormuz,” he added. “This is Iran’s invincible red line.”

Both the US and Iran launch attacks as blockade is reimposed

The U.S. strikes early Thursday hit around Tehran, state media reported. It also reported that American attacks targeted Semnan province, home to Iran’s ballistic missile production and space program.

Iranian media also reported strikes Thursday around the provinces of Hamedan, Hormozgan, Khuzestan, Lorestan, Markazi, and Sistan and Baluchestan, as well as on Iran’s Qeshm island, near the Strait of Hormuz.

On Wednesday, the U.S. resumed striking Iran during daylight, further showing the increasing tempo of the attacks. An attack on Greater Tunb Island targeted Iranian defense and missile sites, Central Command said.

Greater Tunb Island is one of three small rocky islands that sit at the confluence of the Persian Gulf and the Strait of Hormuz — seized in 1971 by Iran from what would become the United Arab Emirates — and have become a garrison for Iran that help it exert significant control over the strait.

The U.S. military also said it disabled a Curacao-flagged oil tanker as it sailed toward Iran’s main oil export terminal, firing a missile after the ship “ignored multiple warnings.”

Another American strike Wednesday targeted a barracks for Iran’s 388th Mechanized Infantry Brigade, which operates tanks and armored vehicles, in Sistan and Baluchestan province, Iranian state television reported. The report said Americans fired at least 13 missiles in the attack and the seven dead included conscripts and career soldiers.

Iran retaliated Thursday morning with missile and drone attacks on Bahrain, Jordan and Kuwait, authorities in those countries home to U.S. forces said. There was no immediate acknowledgment of damage or casualties from the attacks. Kuwait reported a new round of incoming fire on Thursday afternoon.

Meanwhile, Iraqi Prime Minister Ali al-Zaidi condemned an overnight drone attack on the city of Irbil in Iraq’s semiautonomous northern Kurdish region. The drone, which authorities said had been intercepted, came during his trip to the U.S. in which he said Iraq would work to disarm non-state armed groups, including those backed by Iran.

A drone separately targeted a tanker in the Persian Gulf off the coast of Basra in southern Iraq on Thursday afternoon, the state-run INA news agency reported. A port employee who witnessed the attack said there appeared to be only minor damage to the tanker. No casualties were reported.

Trump says a peace deal is still possible

The latest round of fighting is focused on the Strait of Hormuz, as Iran attacks ships using a U.S.-controlled route through the vital waterway.

Week-to-week cargo shipments through the strait dropped by almost a quarter at the beginning of the month, according to Maritime data firm Lloyd’s List Intelligence -- and that was before the recent surge in tit-for-tat attacks.

Given the risks, some oil shippers are transiting the strait with their location devices turned off, but many are just staying put, Lloyds said Thursday. A growing amount of the region’s energy is being shipped through pipelines, but not nearly enough to offset the decline in shipping through the strait.

The U.S. has threatened to reopen the strait by force, but experts say that would require a much bigger armada if not tens of thousands of ground troops.

The price for Brent crude oil, the international standard, traded above $85 a barrel on Thursday, more than 15% higher than the price before the war, but still well below the nearly $120 reached at the height of the conflict.

Rising prices pose a particular challenge to Trump and his Republican Party, which hopes to retain control of Congress in elections in November. But Washington has struggled to successfully reopen the waterway, leading to Trump reimposing the naval blockade Wednesday.

Trump again insisted Iran was ready to strike a peace deal, but he did not elaborate.

“They don’t like what we’re doing, and they do want to settle. We’ll find out whether or not we settle with them, or we just finish it off,” he said Wednesday at the U.S. Army War College in Pennsylvania.

Mediators have sought to calm the tensions, but so far have been unsuccessful. Pakistan’s Foreign Ministry on Thursday said it was still trying to bring the U.S. and Tehran to the table, while acknowledging that mediation was becoming increasingly difficult.

“Whenever the parties exhaust the logic of escalation, the formula for peace is there,” ministry spokesperson Tahir Andrabi told a news conference.

Trump separately said on social media that Tehran made a goodwill gesture by releasing an American citizen wrongly detained in Iran since 2024. He didn’t release further details. Human rights lawyer Jared Genser released a statement identifying the detainee as his client Dena Karari, a U.S.-Iranian citizen who runs a nonprofit and was charged with espionage.

Iran did not immediately acknowledge the release, and her case was not publicly known, as sometimes happens with detentions in the Islamic Republic.

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Associated Press writers Abby Sewell in Beirut and Mae Anderson in New York contributed to this report.