Trump says Iran will 'have to pay the price' after tit-for-tat strikes

US President Donald Trump said on Wednesday Iran had taken too long to negotiate a deal and would now "have to pay the price," while Tehran said it would reassess diplomatic engagement with Washington after overnight tit-for-tat strikes.

Iran launched missile and drone attacks on US bases in Jordan, Kuwait and Bahrain in what it called retaliation for American strikes on Iranian targets around the Strait of Hormuz.

The exchange of fire, which came after Trump said Iran had downed a US Apache helicopter near the strait, marks one of the most significant escalations since Washington and Tehran agreed to a ceasefire in April.

"Iran is all talk and no action," Trump said in a social media post on Wednesday morning. "They've taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!"

The US military said it had targeted Iranian air defences, ground control stations and surveillance radar sites in what it described as a "proportional response" to the downing of the helicopter, whose two crew members were rescued.

Iran's Gulf neighbours and Jordan activated air defences to intercept incoming missiles and there were no immediate reports of damage to US bases.

The escalation - just days after Iran exchanged strikes with Israel for the first time since the ceasefire - casts fresh doubt on prospects for a deal to end the war, which began on February 28 with joint US-Israeli strikes on Iran.

Iran's Foreign Ministry spokesperson said Tehran would reassess diplomatic engagement with Washington after what it called repeated ceasefire violations. "Any diplomatic process requires a minimum stable environment," Esmaeil Baghaei said.

Oil prices jumped by around 2 per cent and stock markets fell after Trump's remarks, which came at the end of a longer message about Iran's military capability, and appeared just minutes after a much longer post criticising a TV host for poor ratings.

Fox News, citing a phone interview, reported that Trump said he may order new strikes on Iran's power plants and bridges because Tehran was taking too long to make a deal.

Still, there were signs diplomatic efforts were continuing. An official with knowledge of the matter told Reuters that Qatari negotiators traveled to Tehran on Wednesday after consultations with the US, in an effort to finalise an agreement. There was no immediate comment from Washington or Tehran.

STRIKES AROUND HORMUZ

The US strikes overnight lasted about four hours, with Central Command saying shortly before 9 pm ET (0100 GMT Wednesday) that operations had ended. A US official said nearly 20 Iranian targets were hit.

Iran's Islamic Revolutionary Guard Corps (IRGC) said Qeshm Island and the port of Sirik were attacked. Iranian media also reported explosions in Bandar Abbas, another port city, and later near Jask at the entrance to the Strait of Hormuz.

The IRGC said it had responded by attacking US bases in Bahrain, Kuwait and Jordan with drones and missiles, and was ready to deliver a "crushing and decisive" response to any further US action.

It said it had fired long-range missiles at four sites at the US al-Azraq base in Jordan, including F-35 fighter jet hangars and a command-and-control centre.

A US official said initial assessments showed nearly all Iranian missiles and drones were intercepted, with no immediate reports of casualties or damage. The Pentagon did not immediately respond to a request for comment. Reuters could not immediately verify the battlefield reports.

Jordan's military said it had intercepted five missiles launched toward al-Azraq, and that falling debris caused no injuries or damage.

Kuwait's defence ministry said it had intercepted "hostile aerial targets", while Bahrain's air defences repelled Iranian attacks, a media adviser to the king said on X. Kuwait houses US military facilities including a major airbase, while Bahrain hosts the headquarters of the US Navy's regional fleet.

PEACE DEAL APPEARS REMOTE

The ceasefire in early April was announced alongside plans for peace talks. Diplomats have since sought to reopen Hormuz, end a US blockade of Iranian ports and create a pathway for negotiations over Iran's nuclear programme.

Trump has repeatedly said a deal is close, but despite several rounds of indirect talks mediated by Pakistan and Qatar, the two sides still appear far apart.

Fighting in a parallel war between Israel and Hezbollah in Lebanon has continued, and Tehran has maintained restrictions on most shipping through the strait, which before the war carried a fifth of the world's crude oil and liquefied natural gas. Washington has kept its own blockade of Iranian ports in place.

Trump has said any peace deal must ensure Iran cannot develop a nuclear weapon. Iran denies any such ambitions.

Iran's demands include the lifting of sanctions, the release of billions of dollars in frozen assets, recognition of its control of the strait and an end to fighting in Lebanon.