Iran, US escalate in Gulf but release of American signals path to climb down

DUBAI: Iran and the United States exchanged intensified fire on Thursday (Jul 16) in a week-long escalation that has all but torn up last month's truce, but Iran's release of a US citizen was seen as signalling a path to avert the resumption of all-out war.For the first time since a memorandum of understanding paused fighting last month, the United States launched two big waves of air strikes in one day on Wednesday, mostly on targets near the coast in southern Iran.Iran responded with missiles and drones fired at US military bases in neighbouring countries, including a major barrage at a recently expanded air base in Jordan.The week of increasingly intense fire has tested the limits of escalation that both sides set during four months of fighting before last month's truce. But in the mids