U.S.-Iran conflict intensifies as strikes expand and Tehran retaliates

Huo Xing Finance reported that on Sept. 2 the U.S.-Iran confrontation sharply escalated after U.S. forces began striking targets inside Iran. Former President Donald Trump warned that any Iranian retaliation would be met with even heavier attacks, as Tehran launched counterstrikes. Key developments in the Middle East include: - U.S. strikes: A new round of attacks targeted Iran, including strikes on a major energy hub port. Multiple sites along Iran's southern coastline were also bombed. - Trump's warning: "We are striking Iran. If it dares to retaliate, Iran will be left with nothing." He later added that the agreement reached with Iran is "worthless," saying the U.S. had given Iran many opportunities and that another mistake would see Iran "completely erased." - Iranian retaliation: Iran's Islamic Revolutionary Guard Corps said it shot down a U.S. MQ-9 drone. Explosions were reported in Erbil, Iraq, and U.S. bases in Jordan and Bahrain came under attack. - Tehran's stance: Iran said it would respond with "severalfold" force and target U.S. military bases, and issued threats toward Bahrain and Kuwait, saying "the gift is on its way." Iran also said the current situation does not allow a return to the memorandum of understanding signed with the United States. - Strait of Hormuz: Commercial traffic through the Strait of Hormuz was largely unchanged on Monday, remaining at single-digit levels. Two supertankers were hit by shelling in the strait. - Routing and sanctions outlook: U.S. Treasury Secretary Bentsen said the Strait of Hormuz would achieve "bypass routing" within two years. Iran said it would not allow the United States to enable vessels to transit via the strait's southern route. The U.S. military has rerouted 84 commercial vessels, and three others have been rendered inoperable.