Iran live updates: Trump says he thinks Iran agreement is 'over' after exchange of fire

While attending the NATO summit in Turkey on Tuesday, President Donald Trump spent part of the day conferring with top advisors about how to respond to Iran targeting commercial ships in the Strait of Hormuz, multiple people familiar with the discussions told ABC News.

Ahead of a dinner hosted by Turkish President Recep Tayyip Erdogan, Trump huddled with Defense Secretary Pete Hegseth, Secretary of State Marco Rubio and Joint Chiefs of Staff Chairman Gen. Dan Caine to formulate a response, which included the U.S. strikes on Iranian targets.

"This response is a direct result of the acts of international terrorism that have been perpetrated by Iran on innocent ships transiting the Strait of Hormuz," a U.S. official told ABC News.

"The Iranians know the consequences to their ridiculous actions, yet they still chose to carry out these attacks," the official added.

-ABC News' Rachel Scott

Crowds of mourners took to the streets of the Iraqi city of Najaf on Wednesday as late Iranian Supreme Leader Ayatollah Ali Khamenei's funeral procession made its way through the holy city, ahead of his planned burial in Iran on Thursday.

Iraqi Prime Minister Ali al-Zaidi and senior Iraqi officials met Khamenei's coffin at Najaf International Airport ahead of the planned ceremonies, according to state television. Iranian President Masoud Pezeshkian was among the Iranian officials accompanying the coffin to Iraq.

Najaf is one of the holiest cities in Shi'ite Islam. It is the burial place of Imam Ali, the cousin and son-in-law of the Prophet Mohammad.

Khamenei's body is scheduled to be buried in the city of his birth, Mashhad, on Thursday.

The Kuwait Army said in a post to X on Wednesday morning that its air defenses were "confronting hostile missile and drone attacks."

In Bahrain, meanwhile, the Interior Ministry confirmed in posts to X that air defense sirens were being sounded.

The Iranian military on Wednesday claimed to have attacked U.S. military bases in both nations.

Iran's military said it launched on Wednesday attacks targeting 85 U.S. military sites in Kuwait and Bahrain, saying they were retaliatory strikes following a wave of U.S. airstrikes on Iranian targets.

The Islamic Revolutionary Guard Corps said in a statement that it targeted Bandar Salman, the Fifth Naval District in Bahrain and Ali Al-Salem Air Base in Kuwait.

Bahrain's Interior Ministry said air raid sirens were activated, adding that all "citizens and residents are urged to remain calm and head to the nearest safe place."

Iran also claimed to have destroyed a drone "that intended to interfere with the operation."

-ABC News' Joe Simonetti