U.S. and Iran trade strikes as ceasefire tensions grow

Added: 2026-06-02

[00:00:01]Iran and the US have traded another round of back-and-forth strikes. Both countries accuse the other of violating the ceasefire, putting the spotlight on the temporary truce and any future negotiations. Meanwhile, as ABC's Christiane Cordero reports, the economic impact in the US is expanding.

[00:00:20]>> Today, new airstrikes across the Middle East are agitating the tension between the US and Iran yet again. US Central Command says Kuwait's air defense systems successfully intercepted an Iranian launched ballistic missile late last night. Officials say the attack followed an escalation near the Strait of Hormuz. One US official tells ABC News Iran was preparing to launch drones, but that US forces shot them down perceiving them as a threat. Now, both the US and Iran accuse the other of violating the ceasefire. Though neither have made clear the ceasefire is officially over.

[00:00:54]>> The issue here is if it if it if it does go back to a full-scale war, then there'll be no mitigation.

[00:01:01]>> Just days ago, the administration suggested a short-term deal was largely sorted out. The optimism nudged oil prices down temporarily, but they're now creeping back up. According to GasBuddy, the average price of regular gas in the US is about a dollar 50 more per gallon than when the war began. And today, the Federal Reserve's favored inflation gauge shows a 3.8% rise in prices compared to 1 year ago. Broader inflation report is expected next month.

[00:01:29]Some of the president's allies insist the administration is working to address the rising costs.

[00:01:34]>> It's a big priority, and I know the president's clearly focused on it.

[00:01:37]>> But when ABC's Rachel Scott asked the president about inflation, he said he's primarily focused on one thing.

[00:01:43]>> Gas prices that are still high across the country, people are paying more for travel. Does that give you more urgency to make a deal? Why doesn't it?

[00:01:50]>> Well, I'll tell you the primary urgency, and I have I said this, it wasn't covered properly, but the primary urgency is that we can't let Iran have a nuclear weapon.

[00:01:59]>> Iran has recently announced a new process for tolling ships in the Strait of Hormuz, something the administration is strongly against. And today the Treasury Department sanctioned the entity Iran created to manage and charge such tolls.

[00:02:13]Christianne Cordero, ABC News, Washington.