Iran-US Conflict

An oil tanker caught fire after being struck by an unidentified projectile in the Red Sea on Monday, 63 nautical miles west of the Saudi port of Yanbu, following the near-total halt of Iranian seaborne crude exports.

The entire crew survived and no environmental damage has been reported, according to the United Kingdom Maritime Trade Operations centre. British maritime security firm Vanguard Tech said the Saudi-flagged vessel was hit by a missile, though the projectile's origin remains unconfirmed. Iran's foreign ministry separately warned of consequences for countries joining the US economic pressure campaign.

The attack comes after the Iran-backed Houthi rebels declared a maritime blockade against Saudi Arabia in late July, and as Washington prepares to impose its most severe sanctions yet on Tehran.

No oil tankers linked to Iran have transited the Strait of Hormuz in the past three days, and no very large crude carriers bearing Iranian crude have been detected since mid-July, according to data compiled by Kpler, extending a near-total freeze on Iranian seaborne exports after shipping collapsed over the weekend.

The shipping blackout follows a warning from Mohsen Rezaei, secretary of Iran's Supreme National Security Council, that Tehran would block every drop of oil from the strait and the wider Gulf if neighbouring states cooperate with US sanctions. Rezaei claimed Iran had still shipped roughly 70 million barrels over the preceding two months.

US Treasury Secretary Scott Bessent announced that Washington will unveil what he called the 'toughest sanctions in history' on Iran on Monday, escalating an economic campaign President Donald Trump has described as 'isolation on an unprecedented scale' since hostilities began on February 28.

The U.S. strategic petroleum reserve has dropped below 300 million barrels, its lowest level since 1983, with salt caverns now roughly 41 percent full, as Washington weighs a plan to release 172 million barrels to calm markets after President Donald Trump declared an unprecedented economic war on Iran.

Global oil inventories declined at roughly 3 million barrels per day between February and August 2026, a cumulative draw of about 519 million barrels. Citigroup projects OECD stocks could reach just 70 days of supply cover by late 2027, while refinery margins have surged approximately 350 percent this year to $33 per barrel.

At the pump, German diesel averaged €2.260 per litre on Saturday, with wholesale diesel trading above $100 per barrel over WTI. The ADAC warned 2026 could become the costest refuelling year on record for German motorists.

Iran has announced the discovery of a substantial new natural gas deposit within the South Pars field, with total reserves estimated at 7.5 trillion cubic feet, Oil Minister Mohsen Paknejad said Sunday.

Of the total volume, approximately 5.7 trillion cubic feet is considered recoverable, equivalent to 15 years of production from a single phase of the field, Paknejad said. The deposit also contains significant volumes of high-value gas condensate potentially worth billions of dollars.

South Pars, the Iranian portion of the world's largest offshore gas field shared with Qatar, has faced disruption from Israeli military strikes since late February. An industry official warned that attacks by the United States and Israel had reduced the field's production capacity by a third. A ceasefire and 60-day negotiation period agreed in June expired Monday.

The United States plans to impose its most severe sanctions yet on Iran in a campaign designed to bring down the government in Tehran, Treasury Secretary Scott Bessent announced on Thursday, with details expected at a press conference on Sunday.

The escalation follows a June agreement signed by President Donald Trump that set a 60-day deadline to end hostilities and reach a nuclear deal. Trump has since threatened the most crushing economic operation against Iran, while Bessent pledged unprecedented economic measures against Tehran.

Iranian President Masoud Pezeshkian, apologising in a televised national address on Sunday, acknowledged citizens face numerous problems and said Iran is now in a full-scale economic, military, and security war waged by Washington, after wartime strikes and a naval blockade crippled the economy.

Pakistan's army chief General Asim Munir is expected to visit Tehran in the coming days for talks aimed at reviving stalled negotiations between the United States and Iran, Pakistani government sources said.

Munir and Iranian Foreign Minister Abbas Araghchi discussed regional developments and ways to strengthen peace and stability in West Asia in a phone call, Iran's government posted on X. The visit, confirmed by two Pakistani government sources, will address threats from President Donald Trump to impose sweeping new sanctions on Iran, the status of the Islamabad reconciliation framework, and Houthi-related issues. Oil shipping through the Strait of Hormuz has halted, with Tehran threatening to attack any vessel transiting without its consent.

The mediation push follows the expiration of a 60-day deadline for a final agreement. US-Iran talks, launched after a June 17 memorandum of understanding, collapsed over security guarantees and navigation rights in the strait. The defence ministry spokesperson Esmail Baqaei said the visit would strengthen bilateral relations. Pakistan signed a joint defence agreement with Saudi Arabia and Turkey earlier in August.

Iran will treat any country participating in US-led economic sanctions as an enemy and target American commercial interests worldwide, Mohsen Rezai, head of Iran's Supreme National Security Council, warned Saturday, escalating rhetoric after Tehran dismissed the new US pressure campaign as destined to fail.

Rezai told state television that nations joining Washington's economic war should distance themselves or face strikes on their interests. He said Iran had so far targeted only US military bases but would now strike American oil holdings and corporate assets in Iran and elsewhere. The warning follows the United Arab Emirates' decision to suspend all trade and financial transactions with Iran.

US Treasury Secretary Scott Bessent, who pledged the measures would trigger the collapse of the Iranian government, is scheduled to detail further pressure on Monday, nearly six months after the US-Israeli offensive that launched the war. China criticised the sanctions push, arguing it would not resolve the Middle East conflict.

U.S. President Donald Trump said Friday that his newly declared economic campaign against Iran does not restrict American military options, insisting Washington retains full control of the Strait of Hormuz region after announcing what he called an unprecedented economic war and isolation targeting Tehran.

Trump asserted that Iranian authorities have no money, navy, or air force, are unable to pay soldiers or police, and face 350 percent inflation. While Tehran would like to negotiate, he said, it is not prepared to reach the right deal. Treasury Secretary Scott Bessent is expected to provide details of the sanctions plan on Sunday.

Iranian Foreign Minister Abbas Araghchi dismissed the measures, calling the so-called economic D-Day a diversion from America's own crisis. The UK Maritime Trade Operations office reported Friday that traffic through the strait is roughly 90 percent lower than before the conflict, which began in late February with a joint U.S.-Israeli strike.

Iranian President Masoud Pezeshkian declared on Friday that the time has come to end the war with the United States, arguing that Tehran currently holds a strong and dignified position. Pezeshkian called a June memorandum of understanding — a 14-point deal signed in Islamabad with Pakistani and Qatari mediation — a major achievement, though the 60-day negotiation window toward a final agreement expired on Monday. Talks between the two sides remain suspended, and Iran continues to block the strategic Strait of Hormuz.

The conflict began when the US and Israel struck Iran on February 28, killing Supreme Leader Ali Khamenei. A ceasefire has nominally been in place since April 8, though both sides have violated it. Tehran has accused Washington of breaching the memorandum and committing economic terrorism and crimes against humanity.

US Treasury Secretary Scott Bessent announced plans to tighten economic sanctions, saying the measures would reduce the need for large-scale military operations.