SummaryTrump vows retaliation, mulls more 'limited' strikes after Iran's own 'retaliatory' missile attacks on US bases in Jordan.Eight Iranian missiles were intercepted by Jordan amid the first major tit-for-tat military strikes in a month.US forces struck Iranian missile launchers on Larak Island, reportedly killing two people.
Iran threatens further retaliation, while regional tensions reignite across UAE, Qatar and Red Sea.Global oil prices rose Monday in wake of the overnight renewed fighting.Strait of Hormuz traffic returns to normal by October 31?
Yes 11% · No 90%View full market & trade on Polymarket * * *Trump Mulling New 'Limited' Strikes (Again)New reporting from Axios: "President Trump and his senior aides have been considering waging limited strikes in the Strait of Hormuz to prevent Iran from reconstituting its radar and missile capabilities to attack ships, according to three U.S. officials.
"This suggests that once again when US 'bad options' tighten related to Iran and the Hormuz crisis, there is still this (bad) idea among decision-makers that the Pentagon can just 'bomb its way out' of a crisis that's of Washington's own making. Such an assumption has already been tried and tested several times before, amid what is now six months into the war."The plan, which was developed over the past week by U.
S. Central Command (CENTCOM) and supported by Secretary of Defense Pete Hegseth, had not been approved by Trump ahead of this weekend's exchange of fire with Iran," Axios continues. "But he could greenlight it after the new escalation.
"And still this reported new potential escalation is being presented by Axios as if it's somehow the US fully in the driver's seat, when in reality this continues to be a "bombing campaign in search of a strategy". More from Axios:One U.S.
official said the idea behind the plan is to reduce the risk of Iranian attacks on oil tankers, U.S. Navy ships and Air Force aircraft — to "mow the lawn," as this person put it.
A White House said: "The President retains all options at his disposal. The Iranians want to make a deal, but they are always a day late and a dollar short."This comes as some top generals have taken the ultra-rare action of leaking their views of this to the press.
"Several U.S. military leaders have advised Defense Secretary Pete Hegseth that prolonging large-scale operations against Iran is unsustainable and risks weakening their ability to confront threats elsewhere, including the U.
S. homeland, according to people familiar with a recent assessment prepared for the Pentagon chief," wrote the Washington Post on Sunday.More latest from Trump (via Newsquawk):US President Trump says Iran strikes will be limited; Strait of Hormuz is in extremely good shape; A lot of oil coming out of Hormuz; Ships came through Hormuz last night with Navy assist.
The Iranians meanwhile appear to be ready for the possibility of renewed dialogue, but they also certainly don't appear to be "begging" - as Trump has maintained. "The US must return to its commitments and abide by the terms of the memorandum; only then can we exit this situation," Iranian Foreign Minister Abbas Araghchi said on Telegram Monday.Vance: I believe that Trump was sending a message to Iran through his post about Kharg Island.
https://t.co/y3HZjRhjEE — barry with the NED (@bonzerbarry) August 31, 2026"The solution is clear and unambiguous: the US must return to its commitments and to the agreement its own president signed" - and, he continued, "Should that happen, everything can be put back on track." The Iranian top diplomat said, "All countries share the concern that the war must end as quickly as possible.
"Trump Vows US will Respond to Iranian AttacksPresident Trump has continued teasing possible 'retaliation' on Kharg Island after an Iranian overnight ballistic missile attack on American bases in Jordan. Trump says the US will respond to the Iranian attacks, according to Fox. According to further context via Newsquawk: Note, the remarks from US President Trump were broadcast as part of a interview on Fox on "Sunday Night In America".
Follows the US hitting Larak Island on Sunday. In response, Iran fired on US bases within Jordan.Reports since indicate that Iran's retaliation did not cause any significant damage.
Modest upside seen in energy benchmarks and downside in the risk tone in proximity to this remark.Iran state media is meanwhile reporting that two were killed in the CENTCOM attack on Larak Island late yesterday, which triggered this fresh round of fighting."During the attack on Larak Island late Sunday, two people were martyred and several others were injured.
The injured in the incident are receiving medical services and their treatment is ongoing," the official IRNA news agency said.Also, the Iranian foreign ministry stated: "The Armed Forces of the Islamic Republic of Iran will have no hesitation in exercising their inherent right to self-defense and will respond decisively, as appropriate, to any military aggression by the enemy."The Jordanian government has meanwhile confirmed the Iranian ballistic missile attack: The Jordanian Armed Forces said Sunday it intercepted eight missiles that had entered the country's airspace, according to Jordan's Al-Mamlaka TV broadcaster.
A spokesperson for the military said all eight missiles were destroyed before they could do any damage, according to the broadcaster.Military Strike Tit-for-Tat Resumes After Weeks Brent crude futures climbed back above $90 a barrel, while West Texas Intermediate topped $86 after the US and Iran exchanged strikes for the first time in about a month. Tehran also claimed that an unidentified supertanker was struck by naval mines in the Strait of Hormuz.
Meanwhile, diesel crack spreads are approaching $100 a barrel again, suggesting an increasingly severe shortage across refined-product markets as the summer draws to a close. US Central Command said American forces struck Iranian rocket launchers that were preparing to deploy anti-ship mines in the critical waterway. The US has touted the Oman shipping corridor as open for business and moving crude and other energy products.
Tehran's inability to halt tankers passing through that part of the strait may suggest that its offensive capabilities have been degraded.Iran's Islamic Revolutionary Guard Corps said it retaliated by targeting US air bases in Jordan, while the United Arab Emirates intercepted an Iranian drone over its territorial waters.Trump: 'Failed Nation'Trump on Monday morning issued a Truth Social declaring Iran a "failed nation":The US military (CENTCOM) has said it did not target Kharg Island in the overnight strikes.
According to a summation of there things stand:The latest U.S.-Iran escalation appears increasingly centered on control of the Strait of Hormuz.
Iran has been using small boats to monitor and identify commercial vessels transiting the Strait using Omani waters for an undetermined period. The boats can blend into civilian maritime traffic, making them difficult to distinguish from ordinary vessels. This comes amid sporadic Iranian attacks and attempts to restrict ships transiting Hormuz without Iranian permission.
The U.S. then struck Iranian missile launchers on Larak Island after assessing they were preparing to deploy sea mines into the Strait.
Iran responded with missile attacks targeting U.S. bases in Jordan, with eight missiles reportedly intercepted.
Al Udeid Air Base in Qatar was also reportedly targeted, though that remains unconfirmed.The pattern suggests Iran is attempting to reassert control or disrupt maritime traffic through Hormuz, while the U.S.
is acting to prevent Iran from closing or mining the waterway. Various reports indicate transits through the strait of Hormuz have declined. What remains to be seen is whether the strikes from both sides tonight will continue in the coming days.
Crude Transit Opening?"Brent crude is firmer at $90.48/bbl, up 2.
5%, as tensions around the Strait