Iran and US step up attacks, though release of American may signal path to climbdown

The United States and Iran have intensified military strikes against each other, effectively ending a month-long truce. While the U.S. claims a prisoner was released as a gesture of goodwill, Iranian officials have denied the report.
Why it matters
The escalation threatens regional stability in the Middle East and risks further disrupting global oil supplies and diplomatic relations.
DUBAI, July 16 (Reuters) - Iran and the United States exchanged intensifying fire on Thursday in a week-long escalation that has largely unraveled last month's truce, while Tehran disputed President Donald Trump's claim that a U.S. citizen had been released.
The U.S. military said it launched a sixth night of consecutive strikes on Iran on Thursday "to further degrade Iranian military capabilities." For the first time since a memorandum of understanding paused fighting last month, two big waves of U.S. air strikes hit Iran in a single day on Wednesday, mostly aimed at its southern coast.
Tehran has countered with missiles and drones targeted at U.S. military bases in neighbouring states including a recently expanded air base in Jordan that Iran said was used in a U.S. attack on an Iranian children's cancer hospital on Wednesday night.
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