US President Donald Trump warned that American forces would hit Iran hard after both nations exchanged fire in the Strait of Hormuz.
The United Arab Emirates intercepted an Iranian drone over territorial waters following fresh American strikes on Iranian targets.
UK maritime agency UKMTO confirmed a commercial tanker was struck by three projectiles east of Khasab, Oman.
Regional hostilities erupted again on Monday. US President Donald Trump promised to strike Tehran "hard" as both powers broke a period of calm with mutual fire. This comment comes following United Arab Emirates claim that it downed an Iranian drone over its maritime territory following renewed American bombardments.
The conflict is now in its sixth month. It escalated again on 30 August after the United States struck an Iranian island in the Strait of Hormuz, and the Islamic Republic retaliated quickly by targeting US military targets in the Middle East.
Trump told a Fox News reporter, "We're going to hit them hard," and added, "There will be a response." He also brushed aside concerns that the conflict was draining American firepower, calling it a "little war."
Oil markets climbed on Monday. Renewed US-Iran clashes sparked fears of extended transit bottlenecks across the Strait of Hormuz, building on oil's steepest rally in three weeks. West Texas Intermediate crossed $86 following an earlier 2.8 per cent jump, while Brent settled near $90. Across a choppy August, crude logged a slight advance amid shifting truce initiatives and American pledges to cripple Tehran's economy.
Gold prices stabilised following a two-day slide. The renewed US-Iran military exchanges after a month-long lull heightened market worries that surging energy expenses could drive up inflation, forcing the Federal Reserve to increase interest rates. Bullion hovered near $4,445 per ounce, recovering from a drop of more than 3.5 per cent over the prior two trading days.
Hormuz Strike Exchange
American forces hit an island in the Strait of Hormuz, and the Islamic Republic responded by launching attacks on the United Arab Emirates and Jordan.
The United Kingdom Maritime Trade Operations (UKMTO), the British maritime agency, on Monday local time said that a tanker was struck by '3 unknown projectiles' in the Strait of Hormuz. In a post on X, the maritime agency said, "A tanker has reported being struck by 3 unknown projectiles whilst completing an outbound transit of the Strait of Hormuz." It added that the incident occurred 17 nautical miles (31 kilometres) east of Khasab, Oman. No casualties or environmental impact had been reported.
Trump And Treasury
Bessent vowed to keep a pressure campaign aimed at hobbling Tehran's economy. Trump attacked Iranian leadership on Truth Social on 31 August and said the country should be tried for war crimes. "Iran is officially a Failed Nation. IT IS DEAD! They have no Navy, they have no Air Force, they have no currency, they are not paying their soldiers or police, Inflation is at 300%, and their leadership is in total disarray and incapable of properly representing the country. The only thing they have is FAKE NEWS from the USA, a willingness to kill their protesters (now over 100,000 people dead," he wrote.
Separately, Trump told reporters in the Oval Office that the renewed strikes did not signal a return to full-scale war, describing Iran as a "failed nation" whose economy and military had been severely degraded. "That doesn't mean we won't smack them. We'll see what happens."
Asked whether he had ruled out using nuclear weapons against Iran, Trump said there was "no reason" to do so because Iran was already "totally defeated militarily."
