According to two US officials, the US military escorted 40 commercial vessels carrying 18 million barrels of oil through the Strait of Hormuz on Tuesday amid ongoing exchanges of strikes between the US and Iran. The officials stated that US forces employed air, sea, and space assets to counter drone attacks and neutralize anti-ship missiles during the operation, which they described as part of a broader strategy to protect commercial traffic while maintaining a naval blockade on Iranian ports.

Iranian state media reported ongoing retaliatory strikes on Kuwait and the UAE following a US announcement of a bombing cessation, while citing 18 fatalities and over 140 injuries in Iran since August 30. Additionally, The New York Times reported that US forces struck a wedding in Kuhestak, resulting in at least five deaths including a child, a claim that remains under verification by Western media.

US stock futures remained largely flat ahead of the weekly jobs report, with technology contracts slightly lower while small caps lagged, despite a rise in crude oil prices. Bond yields edged down 1 basis point, seemingly disconnected from energy market movements, as market-implied odds of a Fed rate hike stood at approximately 64%.

In Asia, the Japanese yen strengthened on speculation regarding more hawkish policy from the Bank of Japan, while US economic data releases and Fed officials' speeches were scheduled for the day.

This is an entry from: Live: Iran warns US that Israeli attack in southern Lebanon could restart full-scale war Iran confirms missile and drone attacks on US bases in UAE and Kuwait 3 September 2026 12:12 BST Iran’s army says it launched missiles and suicide drones at US military bases in the United Arab Emirates and Kuwait early today.

The strikes hit satellite communications systems, equipment warehouses and hangars housing American fighter jets at Kuwait’s Ahmed Al Jaber Air Base, the army said. Iranian forces also targeted US positions and radar systems at Al Minhad Air Base in the UAE.

The army warned that its ground forces would answer any further American attack with a “harsh and devastating response” and continue their operations until they secured victory and punished the aggressor.