Iran and Oman discussed arrangements for securing shipping through the Strait of Hormuz in talks in Muscat, hours before Iran announced it was closing the waterway and struck US bases and Gulf states in retaliation for US attacks, Iran's foreign ministry said on July 12.

The sequence lays bare the collapse of the diplomatic track Tehran and Muscat had been pursuing over the world's most important oil chokepoint, with the closure of the strait threatening a fresh surge in energy prices and drawing missile and drone fire onto Gulf states hosting US forces.

Talks between the Iranian and Omani foreign ministers were held in Muscat on July 11 to coordinate between the two coastal states on managing traffic through the strait, foreign ministry spokesman Esmaeil Baghaei said.

Legal and technical delegations from both countries attended, alongside a delegation from Qatar, which has acted as a mediator in US-Iran talks.

The two sides discussed securing the safety of shipping while respecting the sovereign rights of the two coastal states and applicable international law, in line with clause five of the Islamabad memorandum, Baghaei said. Iran maintained that future arrangements for managing passage must be set through consultation between the two coastal states, taking into account the US-Israeli strikes and their security consequences.

Within hours, the diplomacy was overtaken. Iran's Revolutionary Guards said the strait would be closed until further notice, according to state media, after striking and stopping a ship they said had ignored instructions to use an approved route, describing the fire as warning shots.

US Central Command (CENTCOM) said the vessel had been disabled by fire and damage to its engine room. India said 10 of its nationals had been rescued and one remained missing after the strike off Oman, which the US blamed on Iran. UKMTO said the crew had abandoned ship.

CENTCOM said the US military had struck approximately 140 targets in Iran on July 11 in retaliation for an earlier Iranian attack on a commercial ship, hitting missile and drone sites, naval capabilities, ammunition storage, communication networks and coastal surveillance locations.

Gulf states came under attack as Iran retaliated. Jordan's army said three Iranian missiles had fallen across the kingdom without casualties. Kuwait's military said its air defences were intercepting an ongoing attack, air raid sirens sounded in Bahrain, and the UAE said its defences were engaging threats. Qatar reported intercepting attacks and said three people had been injured.

The Guards said they had attacked a US base in Qatar and destroyed logistical and refuelling facilities for US aircraft carriers at the port of Duqm in Oman, state media IRIB reported. Oman condemned the attack, which came hours after it hosted Iran's foreign minister, the Oman News Agency said. The strike claims could not be independently verified.

"Iran made a poor choice. Now they pay," US Defence Secretary Pete Hegseth said. Pakistan's foreign minister called for de-escalation in a call with his Iranian counterpart. Iran's supreme leader Mojtaba Khamenei vowed revenge for the US-Israeli killing of his father and predecessor on February 28.

"Vengeance is the will of our nation and must inevitably be carried out," he said in a written message on July 11, his first since his father's funeral.