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AAP
AAP
Business
The Associated Press

The Latest: Iran and US exchange fire for second day as hostilities escalate in Mideast region

Iran retaliated against U.S. air and cruise missile strikes as hostilities escalated Thursday with attacks against Kuwait and Bahrain in renewed fighting after U.S. President Donald Trump warned that Tehran would "pay the price" for stalled negotiations.

The exchange came shortly after the U.S. launched a second round of airstrikes overnight Thursday. Bahrain is the headquarters of the U.S. Navy's 5th Fleet.

The new assault across multiple Iranian cities came as efforts to negotiate an end the war appeared to have stalled, with Iran insisting it would maintain its grip on the Strait of Hormuz. Talks have also faltered because of Israel's attacks against the Iranian-allied Hezbollah militant group in Lebanon. On Monday, Iran and Israel targeted each other.

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