TUESDAY, SEPTEMBER 1, 2026|No. 13413
Geopolitics · Energy

US-Iran Tensions Escalate, Sparking Global Economic Concerns and Shifting Energy Investments

Heightened conflict between the US and Iran, including strikes on Larak Island and drone interceptions, has led to a significant increase in global energy costs and prompted substantial investment in new oil infrastructure.

A tanker navigates through the Strait of Hormuz, a critical chokepoint for global oil trade.
A tanker navigates through the Strait of Hormuz, a critical chokepoint for global oil trade.
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Iran urges UN Security Council to intervene after US attack on Larak Island

Iran has told the UN Security Council that the US attack on Larak Island killed and wounded soldiers and civilians, and that Tehran’s strikes on US bases in Jordan were an act of self-defence, according to the country’s IRNA news agency.

The letter was addressed to UN Secretary-General Antonio Guterres by Gholamhossein Darzi, Iran’s deputy permanent representative and ambassador to the UN, on Monday.

In it, Darzi stated that US forces struck the island in the Gulf on Sunday evening, damaging public and private property in “a clear violation of the sovereignty and territorial integrity” of Iran, according to IRNA.

Darzi maintained that the war on Iran has amounted to war crimes and crimes against humanity, for which the US bore responsibility, alongside those who ordered or carried out the attacks, IRNA reported.

Iran had shown restraint throughout, Darzi wrote in the letter, but its forces “would not hesitate” to answer any further attack, having already struck US bases in Jordan.

He asked the council to demand that the US end its attacks and requested that the letter be circulated as an official document, IRNA said.

US approves $800m military helicopter sale to Iraq

The US State Department has approved an $800m military sale of Bell helicopters and related equipment to Iraq, according to a statement issued on Monday.

The department said that the principal contractor will be Bell-Textron of Fort Worth, Texas.

“This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner,” the statement said.

“The proposed sale will improve Iraq’s capability to meet current and future threats by improving its rotary wing transport, reconnaissance, and air-to-surface targeting capabilities,” it added.

How many people has Israel killed and injured in Gaza?

A recap of recent developments

  • UK Maritime Trade Operations reports that a tanker was struck by three unknown projectiles near Khasab, Oman, while exiting the Strait of Hormuz.
  • US President Donald Trump says the Strait of Hormuz remains secure, while claiming that Iran’s financial systems, armed forces, and governing body have largely degraded, adding that “it doesn’t mean we won’t smack them to see what happens”.
  • Iran’s Islamic Revolutionary Guard Corps reports that its air defences intercepted a US MQ-9 drone over the eastern Strait of Hormuz, following a pledge from Trump to respond to Iranian strikes on US personnel in Jordan.
  • A White House spokesperson tells Al Jazeera that “every option” is on the table for Iran and “economic tools are a very powerful set of tools that the president and the administration have.”
  • The death toll from the US attack on Iran’s Larak Island on Sunday climbs to three after an injured person succumbed to wounds in hospital, according to Iranian state media.
  • US Treasury Secretary Scott Bessent states that Washington’s goal for sanctions on Iran is “to create the conditions that they will want to come to the table” for negotiations.
  • Iran’s deputy parliament speaker says the US must be “besieged in the region” while arguing that Tehran should target all oil-exporting nations to heighten economic pressure on Washington.
  • Israel deploys white phosphorus munitions during heavy bombardment campaigns across southern Lebanon’s Zawtar al-Sharquyah and Kfar Reman villages in the Nabatieh governorate, according to Lebanon’s National News Agency.

Welcome to our coverage

Hello, and welcome to our live coverage of the United States and Israel’s war on Iran.

Stay with us for the latest news and analyses from across the Middle East and beyond.

You can find our updates from Monday, August 31, here.

People walk near a billboard depicting US President Donald Trump on a building in Tehran, Iran, August 31, 2026 [Majid Asgaripour via Reuters]

PAN's pipeline reviewed approximately 4 open sources for this article. No human editor reviewed this article before publication.

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