Why do both US and Iran find it necessary to retaliate after each incident?

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Both the United States and Iran View Retaliation as Essential for Maintaining Credibility and Deterrence

Both the United States and Iran perceive retaliation as a necessary response to maintain their credibility and deter further attacks. Iran believes that refraining from retaliation without reciprocal concessions would be interpreted as a sign of weakness, while the United States fears that a lack of response would invite more aggressive actions. This dynamic leads to an escalation cycle where each side's attempt to restore stability or deterrence is seen by the other as justification for further action, a situation exacerbated by their differing definitions of deterrence and the critical nature of the Strait of Hormuz.
Iran Views the Strait of Hormuz as a Key Leverage Point

Iran considers the Strait of Hormuz to be one of its most significant sources of strategic leverage, given its conventional military inferiority to the United States. Tehran aims to demonstrate that any attempts to exclude, sanction, or attack Iran will result in the internationalisation of costs, specifically by disrupting energy exports. The delay of tankers, increased insurance premiums, and reconsideration of shipping routes by companies all translate Iran's geographical position into political leverage.
The US Cannot Allow Iran to Dictate Maritime Passage

The United States cannot permit Iran to establish a de facto right to control access to an international waterway. Furthermore, Washington needs to reassure its Gulf partners and maintain its standing by not appearing hesitant when tankers, terminals, or military installations are attacked. This imperative drives the US response, as non-retaliation is perceived as potentially encouraging further attacks.
Differing Definitions of Deterrence Fuel Escalation

The core of the recurring armed exchanges lies in each side's distinct interpretation of deterrence. When one party attempts to re-establish stability or a deterrent posture, the other side interprets this action as a precursor to further aggression, thus providing its own rationale for retaliation. This fundamental disagreement creates a classic security dilemma, playing out in a globally significant economic artery.
Domestic Political Narratives Constrain Both Nations

Both the United States and Iran are influenced by their domestic political landscapes, which shape their approaches to the conflict. American leaders find it difficult to concede that Iran has gained leverage through attacks on shipping, while Iranian leaders are unwilling to accept arrangements that appear to place their country's maritime access, oil exports, or nuclear program under permanent external supervision. Consequently, both governments seek agreements that can be presented domestically as victories, leading to maximalist rhetoric and shifting objectives.

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Why do both US and Iran find it necessary to retaliate after each incident?

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