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

Iran and the U.S. have traded major air strikes, missiles and drones this week, marking a sharp escalation that risks undoing last month’s truce.
Iran released a U.S. citizen (identified as Dena Karari), a move Washington called a "gesture of goodwill" that could help avert all‑out war.
Fighting has nearly stopped traffic through the Strait of Hormuz, pushing energy prices up and raising global economic concerns.