US hits Larak Island, Iran retaliates with strikes on Jordan and UAE

Hostilities that flared overnight between the United States and Iran remain a "limited and contained confrontation", a senior Iranian source told Reuters on Monday, adding that Tehran was ready to deliver a harsh response if attacked again.

The source, who has direct knowledge of Iranian decision-making and declined to be named, said that conditions in the Strait of Hormuz "will become worse for vessels that violate" rules set by Tehran for passage through the waterway, adding that no target in the region was beyond Tehran's reach.

The US military said on Monday that no ships had hit mines in the Strait of Hormuz, and that Iran's claim that a supertanker struck two mines in the area was false.

Iranian state TV, citing a statement by the Revolutionary Guards, had earlier reported that a supertanker caught fire and came to a complete halt after striking two naval mines in the southern Strait of Hormuz.

US President Donald Trump claims that Washington will hit back after Iran's strikes last night on US forces in Jordan.

"We’re going to hit them hard," Trump told right-wing US outlet Fox News. "There will be a response."

Hours earlier, Trump posted A.I. footage of an attack on Iran’s Kharg Island. A US official then told media that there was no evidence of a US attack on Kharg overnight.

Iran launched missiles at a US base in Jordan in retaliation for Washington striking Iranian military’s assets on Larak Island allegedly dropping mines in Hormuz. Two people were killed by those strikes.

Trump also claimed that almost all of the Iranian missiles were intercepted.

Israeli forces have carried out a new wave of incursions, searches and artillery strikes in southern Syria's Quneitra governorate, despite reports of negotiations over a potential Syria-Israel security agreement. 

On Sunday evening, Israeli forces targeted the area around Tal al-Ahmar in Quneitra province with three artillery shells.

The strikes came hours after Israeli forces entered the village of Al-Samdaniya al-Gharbiya in the governorate's central countryside with four military vehicles. 

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Earlier today an Israeli strike killed at least five Palestinians in the Gaza Strip, health officials reported.

Medics said two people were killed and several others wounded when an Israeli airstrike hit a crowd of people near the municipal public park in Gaza City, an area densely populated with displaced families.

The Israeli military said it targeted Hamas militants, without giving further information.

Later on Monday, an Israeli airstrike hit a vehicle in the Tel Al-Hawa neighbourhood in western Gaza City, killing at least three people, medics added.

The European Union Aviation Safety Agency on Monday extended until 30 September its warning to airlines to avoid airspace over the waters of the Persian Gulf within Bahrain, Kuwait, Qatar and the UAE, narrowing an earlier advisory that recommended avoiding the countries' entire airspace.

The new advisory comes hours after the US and Iran resumed hostilities for the first time since late July.

"While risks over the waters of the Persian Gulf remain high, operations necessary for arrivals at or departures from aerodromes within the affected Flight Information Regions may be conducted with sufficient mitigation," EASA said in its latest advisory for the Persian Gulf nations.

It asked operators to exercise caution while operating above the land territory of these nations, adding that airlines should also not operate over Gulf of Oman waters within Oman's Muscat flight information region.

The agency lifted its previous recommendation that airlines avoid Jordanian airspace, but advised airlines to exercise caution through 30 September.

EASA also extended its recommendations that airlines not operate in the airspace of Iran, Iraq and Lebanon until the end of September.

However, flights arriving at or departing from the Lebanese capital Beirut are permitted if the approach starts from the sea or the departure ends over the sea, the agency added.

The European Union said on Monday that it would continue to work with the United States and other G7 and international partners to keep up pressure on Iran, as it issued a statement to coincide with this week's G20 meeting.

"The EU welcomes efforts at ensuring that Iran ceases its destabilising activities and engages in peace negotiations with good faith, also through additional economic pressure, including through the US-led Operation Economic Outcast," it said.

"The EU will continue to work closely with the United States and other G7 and international partners to maintain pressure on Iran and contribute to de-escalation and regional stability," it added.

Iranian state media IRNA reports that at least two people were killed and several wounded by the US attack on Larak Island.

Finance leaders from the Group of 20 major economies open talks Monday at a US-hosted gathering, with the Trump administration seeking to escalate economic pressure on Iran amid a renewed exchange of fire with Tehran.

The gathering of G20 finance ministers and central bank governors takes place through Tuesday in the Blue Ridge Mountains city of Asheville, North Carolina.

But the first exchange of attacks for a month between the United States and Iran in the Middle East loomed over the meetings as leaders convene early Monday.

Also clouding the talks are Trump's tightening of trade barriers and questions on whether the grouping can still work together to address big economic challenges.

Shortly before talks opened, the European Union urged "continued diplomatic efforts" to reach a peace settlement in the Middle East war, which has also seen Tehran virtually block off the Strait of Hormuz.

The G20 comprises 19 nations plus the EU and the African Union. It was established in the wake of the 1997-1998 Asian financial crisis to boost global economic and financial stability.

The EU added that it welcomes efforts at ensuring Iran ceases its "destabilising activities and engages in peace negotiations with good faith," including through additional, US-led economic pressure.

It pledged to work with international partners to maintain pressure on Tehran.

US Treasury Secretary Scott Bessent skipped last year's meeting led by South Africa, which has been excluded from the group by the US. Washington holds the rotating presidency this year.

Instead, US officials invited Poland to the table, although it is not a permanent G20 member.

Brazil's finance minister is shunning the gathering amid tensions with the Trump administration.

A Russian representative is participating, too. A European official speaking on condition of anonymity expressed disapproval that Moscow was not excluded.

Tehran still seeks a negotiated solution to its conflict with the United States, Iranian President Masoud Pezeshkian said on Monday, according to semi-official Tasnim news agency, following renewed clashes between the two countries.

Pezeshkian told Indian Prime Minister Narendra Modi on the sidelines of the Shanghai Cooperation Organisation summit in Bishkek, Kyrgyzstan, that continued war was in no one's interest and that dialogue and cooperation were the way to resolve existing problems.

An Israeli strike killed at least two Palestinians in the Gaza Strip on Monday, health officials said.

Medics said two people were killed and several others wounded when an Israeli airstrike hit a crowd of people near the municipal public park in Gaza City, an area densely populated with displaced families.

More than 1,300 Palestinians have been killed ‌in Gaza ⁠since an alleged US-backed ceasefire took effect last October, according to Gazan health officials, while the Israeli military says four Israeli soldiers have been killed.

In Hebrew, Netanyahu openly crows that he suckered the U.S. Administration into a war on Iran on behalf of Israel.

Netanyahu explicitly laughs about how he "influenced" America through 1,000 hours of airtime on U.S. networks.

In English, he praises POTUS' leadership.

Serpent. https://t.co/O2hXExS91M

— Seyed Abbas Araghchi (@araghchi) August 31, 2026

An oil tanker caught fire after hitting two sea mines while attempting to take an "illegal" route through the Strait of Hormuz, according to the IRGC.

The vessel was "completely stopped after being hit by two sea mines", said an IRGC statement, carried by state-run broadcaster IRIB.

The United Arab Emirates on Monday condemned an Iranian drone attack intercepted over its territorial waters, calling it a "dangerous escalation".

The foreign ministry said in a statement on X that it "strongly condemned the hostile Iranian attack on the country involving a drone that was intercepted by air defence systems over UAE territorial waters", adding that the UAE reserved the "full and legitimate right to respond".

Indian Prime Minister Narendra Modi met Iranian President Masoud Pezeshkian on the sidelines of the SCO summit in Bishkek, Kyrgyzstan, on Monday, ANI news agency reported, the first meeting between the two leaders in two years.

China's Xi Jinping and Iranian President Massoud Pezeshkian were in Kyrgyzstan for a summit of the Shanghai Cooperation Organisation, with Russia's Vladimir Putin expected later on Monday for the two-day event that will involve over a dozen other leaders.

The regional SCO bloc—which seeks to be a counterinfluence to the West—is celebrating its 25-year anniversary.

The group brings together Russia, China, India, Pakistan, Iran, four Central Asian countries and Moscow-allied Belarus.

Israel and Greece signed a 3 billion euro ($3.48 billion) defence deal on Monday under which Israel would build a "multi layered" defence system for Greece, according to a statement by the spokesperson of Israel's defence ministry.

The statement said a supplementary deal valued at 26 million euros would see Israel sell Greece drone dome systems.

The policy of targeting Gulf Arab states and Jordan has failed, UAE presidential adviser Anwar Gargash said in a post on X on Monday.

"A state of neither war nor peace cannot be a sustainable solution," Gargash said, adding realistic political solutions should begin with de-escalation and the restoration of normal shipping through the Strait of Hormuz.

European shares dipped at the open on Monday as fresh US-Iran military strikes pushed oil prices and bond yields higher, while the STOXX 600 remained on track for a fifth straight monthly gain.

The pan-European STOXX 600 was flat at about 655 points by 0712 GMT after a weaker start, with London markets closed for a bank holiday.

Energy stocks rose 0.6%, tracking a more than 2% jump in Brent crude , which traded around $90.70 a barrel.

Germany's DAX dropped 0.5% ahead of inflation data from the euro zone's largest economy that could offer on the European Central Bank's rate path. Euro zone inflation figures and US payrolls data will be in focus later this week.

Bakkafrost dropped 7.1%, among the top decliners on the STOXX 600 after the Faroe Islands salmon farmer reported second-quarter results.

Russia and Israel both spread and amplified disinformation related to the mass entry of migrants into Spain's North African enclave of Ceuta last month, Prime Minister Pedro Sanchez said on Monday, citing research by the European Union's foreign service EEAS.

Sanchez said it was "evident" that the two countries had used the crisis to criticise the Spanish government, as they were at odds with Madrid over its position on the wars in Ukraine and Israel's genocide of Gaza.

The United Arab Emirates on Monday denied claims that Tehran targeted a base housing US personnel with missiles, after announcing it had intercepted an Iranian drone over its waters.

"Media reports regarding a missile attack on Al Minhad Air Base are baseless," the Emirati defence ministry said in a statement on X.

Earlier, Iran had said it targeted the base using "dozens of attack drones".

The United Arab Emirates on Monday said it had dealt with a drone over its territorial waters coming from Iran, after Tehran claimed an attack on a US base in the Gulf country.

"The Ministry of Defence announced that the UAE Air Force responded to a UAV detected over the country's territorial waters, approaching from Iran," the ministry said in a statement on X.

Iran's President Masoud Pezeshkian will attend the annual Shanghai Cooperation Organisation (SCO) summit in Bishkek, Kyrgyzstan, where he is scheduled to hold bilateral talks with Russian President Vladimir Putin.

The two-day summit begins on Monday, with Turkish President Recep Tayyip Erdogan also expected to attend.

US President Donald Trump posted an AI-generated video clip that he said was Iran's oil hub Kharg Island being blown to smithereens, hours after the two countries traded attacks for the first time since July.

It was not clear if Trump's post was a threat to Kharg Island or if an attack was taking place.

Several hours after the post, there was no evidence Kharg had been attacked.

Iran attacked US military targets in the Middle East on Monday in retaliation for the first American strikes on its territory in a month, in a fresh flare-up of the war that has engulfed the region.

Tehran's powerful Revolutionary Guards (IRGC) said they had responded to Sunday's American attack by striking two US air bases with ballistic missiles in Washington-allied Jordan, causing "heavy damage".

Jordan's army said it had intercepted eight missiles, without stating their origin.

Tehran also claimed it targeted US military personnel at an air base in the United Arab Emirates and shot down a US drone over the Strait of Hormuz.

The flurry of attacks came after the United States said Sunday it had attacked Iranian rocket launchers on the small island of Larak in the strategic shipping lane.

Washington said its attacks were aimed at preventing Iran from placing more sea mines in the strait, days after the US announced it had completed clearing explosives from the waterway.

"US forces took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz," the US military's Central Command wrote on X.

Iran's Guards said the US strikes resulted in "casualties" and that their subsequent attack on Jordan was "in response to the US-Zionist aerial aggression".

The Iranian foreign ministry condemned the US attacks on Larak and justified the Jordan strikes as "legitimate defence".

"We are not seeking war, but we will deliver a decisive response to the aggressors," added Iranian President Masoud Pezeshkian in a statement quoted by state TV.

Pezeshkian was speaking before travelling to Kyrgyzstan for a summit of a bloc that seeks to counter influence from the West, along with Russia's President Vladimir Putin and China's Xi Jinping.

The exchange of fire between the United States and Iran came shortly after their war hit its six-month mark, and at a time when hostilities had been subsiding.