Wednesday 2 September 2026 07:30 UTC
US-Iran Strikes Threaten Hormuz Shipping and Oil Markets
In the 24 hours ending 2 September at 07:30 UTC, US and Iranian forces traded their largest strikes in weeks.
US forces struck at least 100 targets in Iran near the Strait of Hormuz. Targets included air defences, radar, communications, mine systems, ships and coastal facilities. Two Iranian government tankers were also hit.
Iranian officials said strikes hit a wedding and several southern coastal areas. They said four or five people died, while dozens suffered injuries.
Donald Trump, the US president, threatened much heavier attacks if Iran responded again. He claimed the operation reduced threats to commercial shipping for at least one month.
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Iran answered with missiles and drones against US-linked sites across the region. Jordan intercepted 10 of 13 ballistic missiles aimed near a US facility. The other three landed in empty areas, and no US casualties were recorded.
Kuwait engaged hostile missiles and drones during its first reported attack in weeks. Bahrain activated warning sirens, while Iran also targeted airbases in the United Arab Emirates.
Qatar, Oman, Pakistan and Saudi Arabia continued efforts to reduce the fighting. However, Iran said current conditions prevented a return to its earlier US agreement.
Two tankers carrying Saudi crude were struck while leaving the Strait of Hormuz. Each vessel carried two million barrels, but all crew members remained safe.
Oil prices rose sharply as the fighting threatened global supplies. Brent crude passed $91 a barrel, while US crude reached $90.22.
US diesel refining margins reached a record $106 per barrel. Low fuel stocks pushed retail diesel prices near $5.63 a gallon. Higher fuel costs raised new concerns about transport costs and inflation.
Traders raised the chance of a September US interest rate increase above 66%. Global government borrowing costs climbed, while US shares, gold and silver fell.
Iran continues to deny international inspections of its missing uranium. Scott Bessent, the US treasury secretary, said new banking sanctions would likely follow.
Russia has secretly helped Iran develop advanced supersonic cruise-missile technology since 2023. Russian engineers shared design and testing knowledge with Iranian developers. Iran has built and tested an engine for faster, low-flying missiles.
Vladimir Putin, Russia’s president, ordered massive strikes against Ukraine’s energy system. Russia also cut its 2026 oil production forecast to the lowest level since 2009.
Germany blamed Russia for an August drone attack on Leipzig Airport. It will close two Russian diplomatic and cultural offices and restrict Russian entries. Germany decided against requesting formal NATO talks over the attack.
Israeli forces killed two Hamas members in Gaza City, including a military-security commander. An Israeli-backed Palestinian militia also captured the head of Hamas’s internal security service.
Venezuela’s National Assembly approved the oil agreement announced with the United States. Chevron also moved closer to an agreement covering two Venezuelan oil fields.
Sir Keir Starmer, the former British prime minister, announced plans to leave Parliament. Britain also recorded its hottest summer on record.