The U.S. has launched a fresh wave of strikes on Iran, targeting Islamic Revolutionary Guard Corps (IRGC) sites as Tehran retaliated against U.S. positions across the region, while Iranian officials said at least five people were killed and dozens wounded at a wedding near Sirik.
U.S. President Donald Trump said on Wednesday that the renewed U.S. military campaign against Iran would not continue for too long, as fighting between the two countries intensified after a period of relative calm.
Iranian border guards have seized a vessel with 382,000 litres of smuggled fuel in the northern Gulf, and arrested its foreign crew of 11, the state broadcaster IRIB reported on Wednesday, without giving the nationality of the detained crew.
Iran, which has some of the world's lowest fuel prices due to heavy subsidies and a sharp fall in the value of its national currency, has been seeking to curb widespread fuel smuggling by land to neighbouring countries and by sea to Gulf states.
U.S. Central Command denied targeting civilians after Iranian media reported at least four people were killed in a U.S. strike on a wedding in Sirik, southern Iran.
"The U.S. military never targets civilians, unlike the Revolutionary Guards," CENTCOM told Reuters on Wednesday.
U.S. Treasury Secretary Scott Bessent told Fox News on Wednesday that airlines, the maritime industry and digital assets could be possible targets for sanctions as the Trump administration continues its planned efforts to squeeze Iran's economy.
China's President Xi Jinping on Wednesday called for the rejection of "external interference" in the Middle East, and said external powers should abandon double standards in the region, Chinese state media outlet Xinhua reported.
Xi made the remarks in talks with Egyptian President Abdel Fattah al-Sisi in Cairo, according to Xinhua.
Global markets came under pressure on Wednesday as rising oil prices and higher bond yields increased concerns over inflation amid escalating U.S.-Iran tensions. Oil prices surged above $95 per barrel for Brent crude, while the U.S. 10-year Treasury yield climbed to its highest level since November 2023.
Investors feared that higher energy costs could push the U.S. Federal Reserve toward tighter monetary policy, adding pressure on stocks and bonds. U.S. President Donald Trump warned of larger strikes on Iran if Tehran retaliates, while Iranian media reported missile and drone attacks in response.
The Dow Jones, S&P 500 and Nasdaq all closed lower on Tuesday, with futures pointing to further declines. Washington also prepared new sanctions against Iran, while markets monitored signals from Fed officials over possible interest rate decisions.
Kuwait has strongly condemned Iranian missile and drone strikes on its territory, calling them a violation of its sovereignty and a threat to regional stability. The Foreign Ministry said the attacks breach international law, the UN Charter and Security Council Resolution 2817, while reserving the right to take measures to protect the country and its citizens.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for targeting the U.S. commander’s headquarters and accommodation at Ali Al Salem Air Base in Kuwait, saying the attack was aimed at U.S. forces, not the Kuwaiti people. The IRGC said the strikes were carried out in response to a U.S. attack on southern Iran that killed four people, including a child. The escalation follows U.S. strikes on Iranian targets and reports of explosions in several Iranian cities.
Top Trump administration officials are reportedly trying to keep the Iran war from escalating before the 3 November midterm elections, as the conflict remains unpopular with U.S. voters.
The White House is currently prioritising tougher economic pressure on Iran rather than a return to full-scale military action, while leaving open the possibility of stronger strikes after the election.
The strategy is complicated by renewed U.S.-Iran attacks, which could trigger another cycle of retaliation and escalation. Political pressure is significant: only 31 per cent of Americans approve of the war, while Trump’s approval rating has fallen to 33 per cent since the conflict began.
The U.S. military is also facing logistical constraints, with reports that stocks of some precision munitions have been heavily depleted. Washington is therefore intensifying sanctions and economic isolation, although analysts question how effective this approach can be without the support of major powers such as China.
Two oil tankers hit sea mines and were disabled while attempting to transit the Strait of Hormuz, Iran's Revolutionary Guards said on Wednesday, in a statement shared by state media.
The statement said the tankers had been forced to disembark their crews and were placed in the hands of U.S. operatives to pass through what it called an "illegal route" in the strategic waterway, despite earlier warnings from the Guards' navy about the dangers of crossing the mined passage.
Israel intensified airstrikes and artillery shelling across southern Lebanon’s Nabatieh province overnight, destroying homes and damaging a cemetery and nearby buildings, according to Lebanon’s National News Agency.
Heavy shelling also hit several areas around Nabatieh, with the agency reporting the use of phosphorus shells. No injuries were reported in the strikes.
Lebanese authorities say Israel’s offensive since 2 March has killed more than 4,000 people, injured over 12,000 and displaced more than one million.
The escalation comes as Israel and Lebanon continue U.S.-led talks on security arrangements along the southern border.
Saudi shipping company Bahri has reported that two sailors were killed after its Sidr vessel was involved in an incident while transiting the Strait of Hormuz on 31 August.
The two seafarers were Filipino nationals, according to the latest alert. Contact with the vessel remains ongoing.
Earlier reports said the tanker was struck by unidentified projectiles near Khasab, Oman, as it sailed out of the strait.
Iran’s Revolutionary Guard says four military personnel were killed in a U.S. strike on the western province of Kermanshah overnight.
The IRGC said in a statement carried by Fars news agency that the four members of its Aerospace Force were killed in the attack.
Qatar has condemned Iran’s renewed attacks on its Middle East neighbours, describing the missile and drone strikes as a “flagrant violation” of their sovereignty.
Qatar’s Foreign Ministry said the attacks represented a “dangerous escalation” that would complicate efforts to contain tensions and undermine political and diplomatic efforts to achieve security and stability in the region.
Earlier, Iran’s Supreme Leader Mojtaba Khamenei said the country’s armed forces had “unforgettable lessons” in store for the United States following a series of attacks on Tuesday.
Iran’s Islamic Revolutionary Guard Corps said it launched drone attacks on U.S. military positions at the al-Dhafra and al-Minhad bases in the United Arab Emirates.
The IRGC said the strikes targeted radar systems and U.S. forces in retaliation for American attacks on Iranian residential areas and a wedding ceremony.
The UAE has not immediately confirmed the claims, which were reported by Iranian state media.
Kuwait said an Iranian drone attack caused a fire at a residential building in Kuwait City, with no casualties reported.
Firefighters have extinguished the blaze, according to state news agency KUNA. Officials said the building was targeted by a hostile drone as part of what they described as Iranian aggression.
Iran’s Islamic Revolutionary Guard Corps said on Wednesday that it launched missile and drone strikes on U.S. bases in Erbil, Iraq, in retaliation for overnight U.S. attacks.
The IRGC claimed the strikes destroyed military equipment and facilities, damaged a surveillance balloon system and set fuel storage areas on fire, while also alleging that some U.S. troops were killed.
The U.S. military had earlier said it struck IRGC targets in Iran.
Bahrain’s Interior Ministry issued its third alert in six hours over a “potential threat”, urging residents to stay calm and move to the nearest safe location.
The ministry said people should follow official channels for safety updates, after Bahrain’s Defence Force reported intercepting and destroying several Iranian aerial attacks.
The dollar held near a two-week high on Wednesday as renewed Middle East hostilities pushed oil prices higher, reviving inflation concerns and lifting U.S. bond yields.
The dollar index rose 0.11 per cent to 99.79, while Brent crude climbed 1.15 per cent to $95.74 a barrel.
Two locations near Ahvaz and Aghajari in Iran's southwestern Khuzestan province were targeted by missiles, the provincial deputy governor for security affairs said, according to state broadcaster IRIB.
U.S. Energy Secretary Chris Wright said 17 million barrels of oil passed through the Strait of Hormuz on Monday, 31 August, the highest daily volume since the war with Iran sharply reduced flows through the key shipping route.
Just four commodity vessels passed through the Strait of Hormuz on Tuesday, preliminary Kpler data showed, marking a sharp drop from the 10 recorded a day earlier and the recent average of around 13.
The vessels comprised two tankers and two bulk carriers.
The tally could rise as some ships turn off their tracking signals while at sea.
The U.S. Navy's USS Abraham Lincoln arrived in Thailand on Wednesday, 2 September, after more than 200 consecutive days at sea, including a lengthy deployment in the Middle East.
The carrier, carrying about 5,000 sailors and Marines, will spend five days in Thailand for rest and recuperation, amid reports of mounting mental health concerns and deteriorating conditions on board.
The arrival is also expected to boost businesses in nearby Pattaya, while authorities have increased security and warned military personnel against taking part in prohibited activities.
The U.S. military said it had completed a new wave of strikes on Iran, hitting IRGC air-defence, radar, maritime and communications sites.
Iran retaliated against U.S. assets in Jordan, Bahrain and Iraq, in the most serious escalation in weeks.
The fighting has disrupted shipping through the Strait of Hormuz and pushed global energy prices higher. Iranian officials said at least five people were killed and dozens wounded at a wedding near Sirik.
President Donald Trump said he was "not trying to force Iran to the bargaining table", asking: "When are the Iranian people going to rise up and fight?"
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