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US-Iran Clashes Hit Water Plants, Block Hormuz, Threaten Economies

7/20/2026

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Story summary
  • Strikes on water and desalination plants have threatened thousands with power and water shortages amid Gulf heat.
  • U.S. forces and Iran exchanged attacks that killed two U.S. soldiers, wounded dozens and damaged roads in southern Iran.
  • Tehran, Washington and the United States have blocked traffic through the Strait of Hormuz and blocked Iranian ports.
  • Analysts say the conflict threatens the economies and political stability of the United States and Iran.