US military leaders reportedly warn of strain as Iran tensions simmer

As tensions with Iran continue, senior US military leaders have reportedly warned Defense Secretary Pete Hegseth that prolonging large-scale operations against Iran could strain American military readiness. According to reports, the warning came from top officials in the Army and Navy.

Separately, reports indicate that Washington is seeking support from its allies to manage the escalating crisis in the region.

Tensions in the Strait of Hormuz have escalated further after a tanker was reportedly hit by an unknown projectile in the strategic waterway. The incident comes as Iran indicated the strait could remain closed for three more days.

Separately, US Central Command (CENTCOM) rejected a claim by Iran's Islamic Revolutionary Guard Corps (IRGC) regarding strikes in the strait, terming it an 'act of aggression'.

Global oil prices climbed on Monday, with Brent crude rising above $90 a barrel, as tensions escalated following an exchange of military strikes between the United States and Iran. West Texas Intermediate (WTI) crude also saw gains, trading at over $85 a barrel.

In Tehran, the head of Iran's parliamentary national security committee, Ibrahim Azizi, stated that a response to the US attack on Larak Island was "inevitable" and vowed it would be "devastating, painful, and instructive."

Meanwhile, a report citing The Washington Post claimed that senior US military officers, including the heads of the Army, Navy, and Air Force, have warned Secretary of War Pete Hegseth against prolonging the military operation in Iran, expressing concerns that it could weaken American military capabilities.

US President Donald Trump on Monday claimed Iran’s Kharg Island was being “completely destroyed” and posted an AI-generated video to his Truth Social platform that appeared to show military strikes inside Iran. Kharg Island is home to significant Iranian oil facilities.

The social media post marked a further escalation in the conflict, which has already impacted global financial markets. Share markets in Asia slipped on Monday, with MSCI's broadest index of Asia-Pacific shares outside Japan losing 0.7%. The increased geopolitical risk also contributed to a rise in the probability of a US interest rate hike in September to 57%, according to market watchers.

Global oil prices surged by more than $1 a barrel on Monday, August 31, after Iran and the United States exchanged military strikes, escalating tensions in the Middle East. Brent crude futures climbed to $89.18 a barrel, while US West Texas Intermediate crude rose to $84.32. The market reaction followed Iran's retaliatory ballistic missile attack on what it described as two US military air bases in Jordan, claiming to have caused "heavy damage." Jordan's army confirmed it had intercepted eight missiles.

The Iranian attack was a response to a US airstrike on Sunday on Iran's Larak Island in the Strait of Hormuz. US Central Command described its action as "limited, precise action against IRGC mine laying forces posing an imminent threat." The exchange of fire marks the first known US strikes on Iranian territory since late July and comes as the conflict enters its sixth month.

The United States has resumed airstrikes in the Strait of Hormuz, targeting positions belonging to Iran's Islamic Revolutionary Guard Corps (IRGC), according to available reports on Monday, August 31.

This action follows an earlier exchange of fire between the two countries. On Sunday, August 30, US forces conducted an airstrike on Iran's Larak Island, targeting missile launchers that were allegedly being prepared for use. Iran retaliated with a ballistic missile attack on American forces stationed in Jordan, though most of the missiles were reportedly intercepted.

A US official confirmed that American forces struck two Iranian launchers on Larak Island on Sunday, August 30. The official stated that forces from Iran's Islamic Revolutionary Guard Corps (IRGC) were observed preparing to launch rockets with sea mines into the Strait of Hormuz.

According to Iranian state media, the IRGC said the attack killed and wounded several soldiers and citizens and would be met with a “response and punishment.” Iran’s semi-official Tasnim news agency reported the US carried out a drone strike. The action follows a statement from US President Donald Trump last week that any new mines placed in the strait would be destroyed.

Iran has retaliated for the US strike on Larak Island by attacking American forces stationed in Jordan, according to reports on Sunday citing a US source.

The reports indicate that ballistic missiles were used in the attack. Nearly all incoming missiles were intercepted, and there has been no significant impact reported so far.