Trump vows more strikes as US-Iran conflict hits global shipping

US President Donald Trump on Monday vowed to take further military action against Iran, telling a reporter, “We’re going to hit them hard.” The statement came after the first direct exchange of fire in a month between the two countries. A senior Iranian source described the exchange as a “limited and contained confrontation” but warned of a harsh response if attacked again.

President Trump also posted AI-generated videos to social media depicting explosions at Iran’s main oil export terminal on Kharg Island, with the message “Kharg island being blown to smithereens!!!” Iran dismissed the post as “laughable,” and no such attack was confirmed to have taken place. US Vice President JD Vance told reporters the president “likes to switch it up on social media a little bit” and was “sending a message.”

The conflict's economic fallout is impacting Pakistani exporters, with shipping costs to the United States surging by over 200 percent on some routes. Ismail Suttar, founding chairman of the Salt Manufacturers Association of Pakistan (SMAP), said a container from Karachi to New York that previously cost around $2,000 is now being quoted at $8,000 to $9,000, undermining the competitiveness of Pakistani goods.

In Washington, President Trump is scheduled to meet with oil refining executives on Tuesday to address high domestic fuel prices ahead of the November midterm elections. The White House said the talks would focus on increasing refining capacity and bringing down costs for Americans.

Iranian President Masoud Pezeshkian said on Monday that Tehran remains committed to finding a diplomatic solution to its confrontation with the United States, despite a recent escalation in hostilities. The statement came a day after the US conducted strikes on Iran's Larak Island and Iran launched retaliatory attacks.

Speaking on the sidelines of a regional security gathering in Kyrgyzstan, Pezeshkian told Indian Prime Minister Narendra Modi that dialogue and cooperation were the solution to the current issues. According to Iran’s semi-official Tasnim news agency, he accused the US of failing to honour previous commitments but stressed that continued warfare would not serve the region or the international community.

The call for diplomacy follows a tense period of military action. A US official stated the American strikes targeted Islamic Revolutionary Guard Corps (IRGC) members who were seen preparing to launch rockets and deploy naval mines into the Strait of Hormuz. In response, Iran's Foreign Ministry said its strikes in Jordan targeted American facilities involved in the Larak operation. The IRGC also claimed to have downed a US drone in the Gulf and stated that a supertanker had caught fire after hitting two naval mines in the Strait of Hormuz.

The escalating military conflict between the United States and Iran has sent shockwaves through global financial markets, causing stock indexes in the US and the Gulf to fall on Monday.

In the Gulf, stock markets in Dubai, Abu Dhabi, Qatar, and Saudi Arabia all registered losses as the renewed military action weighed on investor confidence. The United Arab Emirates also reported on Monday that its air force had engaged a drone over its territorial waters that had originated from Iran.

Meanwhile, reports indicate that the US Strategic Petroleum Reserve (SPR), a key tool for managing oil prices during crises, is at its lowest level since 1982. After years of releases, the reserve holds just 289.7 million barrels, significantly reducing Washington's ability to calm oil markets. President Donald Trump has stated the US intends to refill the reserve using Venezuelan oil.

The economic fallout comes as Iran reportedly faces severe internal pressure, with analysts pointing to a shrinking economy, soaring inflation, and significant job losses since the conflict began.

Iran has launched retaliatory ballistic missile strikes against US military bases in Jordan and the United Arab Emirates, following an American airstrike on Iran's Larak Island on Monday, August 31. The Islamic Revolutionary Guard Corps (IRGC) confirmed the strikes, which it said were in response to the US attack that it claimed killed multiple personnel and civilians.

According to US and Jordanian officials, Jordan's air defence systems intercepted most of the incoming missiles aimed at the Muwaffaq Salti Air Base, and no American casualties were reported.

The escalation has driven global crude oil prices above $90 per barrel. In a related development, the US Treasury announced it would impose new weekly sanctions targeting banks to increase economic pressure on Tehran.

The United States has reportedly launched new military strikes against Iran, resulting in the deaths of more Iranian forces, according to available reports on Sunday, August 31. Following the latest attacks, Iran has issued strong warnings to the US, with its president delivering a “blunt reply” and other officials vowing a “devastating payback” and an “appropriate response” to what they termed “aggressive actions.”

In the wake of the escalating conflict, global crude oil prices have reportedly broken a major record. Meanwhile, Iranian sources have claimed that its forces caused “massive damage” to US military bases in the Middle East, a claim that has not yet been independently confirmed.

In a subsequent development, President Donald Trump released a video of the attack, with some reports now claiming the video was generated by artificial intelligence.

In a significant escalation, President Donald Trump has released a video purportedly showing the US attack on Iran's Larak Island.

Following the strike, Iran has issued a warning to US allies in the region, though the specific nature of the warning remains unclear. These developments follow the initial US drone strike near the Strait of Hormuz which American officials claimed targeted Iranian missile launch positions.

Further reports indicate the US military action on Iran's Larak Island was carried out using a drone.

A US official has reportedly claimed that two rocket launchers belonging to Iran’s Islamic Revolutionary Guard Corps (IRGC) were destroyed in the airstrike on Larak Island.