Oil prices jump 3% as U.S. and Iran renew military strikes
Aug 31, 2026
(CNN) -- Iran and the United States traded attacks for the first time in more than a month overnight Monday, threatening to reignite the conflict after weeks of relative military calm.Iran said it fired missiles toward U.S. mili
tary targets in Jordan and the United Arab Emirates in retaliation for a U.S. strike on Iranian rocket launchers on Larak Island. The United States said Iran tried to launch sea mines into the Strait of Hormuz, a shipping route at the center of regional tensions and diplomatic efforts.The exchange sent global oil prices up nearly 3%, and came days after President Donald Trump declared the Strait of Hormuz free from mines and signaled a shift toward maximizing economic pressure on Iran instead of using military force.Six months into the fighting, both sides remain locked in a dispute over the waterway, which carries much of the worlds energy.U.S. Central Command said it targeted two Iranian rocket launchers on Larak Island after it observed Iranian forces preparing to launch rockets with mines into the strait.Trump, who did not specifically mention the strikes in a Truth Social post Monday, again criticized Iran as a failed nation, and said Irans leadership is in total disarray and incapable of properly representing the country. He also told Fox News Monday that the United States would hit them hard and that there would be a response.A blast near the island prompted reports from state media that described casualties among Iranian forces and civilians. CENTCOM later said it conducted a targeted strike against Irans mine-laying forces, which it said posed an imminent threat.Irans state-run Islamic Republic News Agency said the strike on Larak Island killed at least two people and wounded several others, citing Qeshm County Governor Hossein Amirtaymouri.Iranian President Masoud Pezeshkian said Iran does not seek war but will respond to aggression. State media also carried a statement from the Islamic Revolutionary Guard Corps calling the U.S. strike a strategic and deadly mistake and vowing retaliation.Jordan said its air defense systems intercepted and destroyed eight missiles that entered the countrys airspace.The UAE detected a drone over its territorial waters after Iranian state media said the IRGC targeted a base hosting U.S. personnel there. The UAE denied the base was targeted and called the attack a dangerous escalation, adding that it reserves the right to respond, according to a Foreign Ministry statement.Iran warned regional countries Monday against allowing their territory, airspace or coastlines to support U.S. operations. In a statement carried by Iranian state media, the military said it would strike the point of origin of any aggression while respecting neighboring countries sovereignty.U.S. officials said they monitored the area and remained prepared to protect commerce through the waterway.Stalled talksSix months after the conflict began, the White House said Thursday there were no ongoing negotiations. Iran and Oman continued discussions on a plan to restore maritime traffic through the strait, with Qatar and other mediators supporting the effort.UAE presidential adviser Anwar Gargash said Monday that neither war nor peace could be a sustainable solution, and he called for realistic political answers to address the crisis. He made the comments in a post on X, formerly Twitter.Sundays attack marked the first U.S. strikes on Iran since July 29, when the U.S. carried out a heavy wave of strikes after an attempted attack on American military positions the day before.In recent weeks, Trump has focused on increasing economic pressure on Iran. The U.S. Treasury Department has threatened new sanctions on countries that do not cut ties with Iran, calling the move an economic D-Day. On Sunday, Treasury Secretary Scott Bessent told Reuters the department planned to announce secondary economic sanctions on Iran weekly, at first targeting banks. Bessent said that more actions would follow each week and that the department was telling banks it was not acceptable to hold Iranian money or aid the regime.
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