Kathmandu— In a tense escalation of conflict, Iran denied on Sunday that it had struck an unmanned U.S. vessel attempting to enter the Strait of Hormuz, while the U.S. military dismissed Iran’s claims as a “total lie.” The dispute, which began with U.S. and Israeli attacks on Iran on February 28, has seen renewed fighting since a ceasefire agreement was announced in June, with both sides seeking to inflict economic and military pain as negotiations have faltered.

Background of the Conflict

The conflict began with U.S. and Israeli attacks on Iran on February 28. Since a ceasefire agreement was announced in June, on-and-off fighting has persisted, with both sides trying to inflict military and economic pain as negotiations have collapsed. The Strait of Hormuz, a narrow waterway that is vital to global energy supply, has been a focal point of the conflict, with strikes and attacks targeting Iranian communities and commercial vessels in the area.

Iran's Claims and US Rejection

Iran claimed that it struck an unmanned U.S. vessel attempting to enter the Strait of Hormuz, but the U.S. military dismissed the claim as a “total lie.” The U.S. military had previously stated that it had struck three Iranian oil tankers in response to a missile attack on Navy warships. The latest claims and denials have added to the already tense atmosphere in the region, with both nations accusing each other of escalating the conflict.

Economic and Military Impact

The conflict has significant economic and military implications. The Strait of Hormuz is crucial to global oil and natural gas shipments, and Iran has found ways to circumvent sanctions and get its oil to buyers. The U.S. has adopted a dual-prong approach, responding militarily to attacks on the strait while targeting foreign financial institutions that handle Iran’s money. Tehran’s new hard-line leaders have signaled a willingness to dig in after weathering decades of sanctions.

The conflict continues to escalate, with both nations accusing each other of attacks and seeking to inflict economic and military pain. Diplomats are considering referring Iran to the U.N. Security Council for failure to comply with its nuclear nonproliferation obligations, but negotiations have fallen apart.

(With inputs from AP)

Originally published on abcnews.com.np.