US-Iran war news Highlights: US gas prices hit record $4.14 a gallon as Iran war disrupts oil flows

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US stock futures slipped in cautious trading as escalating Middle East tensions pushed oil prices higher and added to inflation concerns.

Brent crude moved toward $98 a barrel after Iran and the US exchanged their largest round of tanker attacks so far.

Markets also monitored reported attacks on Saudi oil infrastructure on the Red Sea and a potential Iran-Oman deal to manage shipping through the Strait of Hormuz.

S&P 500 futures fell 0.2%, while Nasdaq 100 futures edged up 0.1% and Dow futures declined 0.6%.

Iran has raised gasoline prices for heavy users, marking the second fuel price hike since December.

Consumers buying more than 110 litres (29 gallons) a month will now pay 100,000 rials (about 7 cents) per litre.

The new rate is twice the price heavy users have paid since December.

The government cited the “current situation” for the latest increase and said additional revenue would be distributed to households.

Average regular gasoline was $4.14 a gallon, nearly $1 higher than a year ago and above the previous Labor Day weekend record of $3.82 set in 2012.

Gas prices surged after the US and Israel attacked Iran in February, with crude oil traffic through the Strait of Hormuz plunging.

Iran has refused to reopen the strategic waterway, keeping pressure on global oil supplies and US fuel prices.

Yemen’s Iran-backed Houthis accused Saudi Arabia of carrying out airstrikes across the country, including a deadly strike on a prison in Al-Hazm.

The Houthi-linked Saba news agency said seven people were killed, including a child visiting the prison, and seven others were wounded.

The Houthis said Saudi strikes targeted Jawf, Al-Bayda, Marib and Taiz, using airstrikes and cruise missiles.

The accusations come as the Houthis push an offensive to seize territory near the strategically important Bab al-Mandab Strait.

Days of fighting near Yemen’s Red Sea coast have reportedly killed more than 300 people and displaced hundreds of families.

The Houthis also claimed to have carried out a missile strike on trucks carrying Saudi military equipment to Al-Wadiah military camp in Hadramawt.

The Bab al-Mandab Strait is the southern gateway to the Red Sea and a crucial shipping route for global trade and Saudi oil exports.

Iran threatened retaliation against any new US attacks on its assets.

Iranian Parliament Speaker Mohammad Baqer Qalibaf warned: “Strike our assets and you get struck.”

Tehran said US oil and gas interests across the Gulf are vulnerable to attacks.

Iran plans to create a new restricted zone and shipping corridor in the Strait of Hormuz.

Tehran said Hormuz will remain restricted until the US stops its “sabotage, threats and attacks” on Iran.

The United Arab Emirates is developing alternative routes for its energy exports and trade to ensure they are not “held hostage” by the ongoing war between the US and Iran, UAE presidential adviser Anwar Gargash said on Monday.

Gargash said relations between the UAE and Iran could eventually recover but warned that rebuilding trust after the attacks could take decades.

He also criticised Gulf Arab countries for failing to develop a coordinated response to Iran, saying they had not been able to turn their shared concerns into a unified strategy.

The UAE is developing alternative routes for energy exports and trade to avoid being “held hostage” by the US-Iran war, presidential adviser Anwar Gargash said.

Gargash said the conflict has significantly affected Gulf Arab states, including the UAE.

“Our energy exports will not be held hostage, nor will our trade and economic activity,” Gargash said.

The UAE is expanding port capacity on its eastern coast and developing pipelines, railways and alternative trade corridors.

Gargash said UAE-Iran relations could eventually recover, but rebuilding trust could take decades.

He criticised Gulf Arab states for failing to develop a coordinated response to Iran despite sharing security concerns.

The US is pushing for Iran to be referred to the UN Security Council over Tehran’s failure to cooperate with nuclear inspectors.

The move is expected at the IAEA Board of Governors meeting in Vienna, which began on Monday.

Iran has blocked the IAEA from verifying its uranium stockpile for 15 months, since Israeli airstrikes began in June 2025.

A US resolution calls on Iran to “urgently remedy its non-compliance” and allow inspections to ensure there is no diversion of nuclear material.

IAEA chief Rafael Grossi said there is currently “no engagement” or information from Iran on its nuclear activities.

Israel’s military said it remains committed to the ceasefire with Lebanon but will continue to “remove threats” from Hezbollah.

Lebanon’s health ministry reported 12 people killed in overnight Israeli strikes.

The Israeli military said it targeted Hezbollah “infrastructure sites” across southern Lebanon after two explosive drones were launched at its troops.

Israel also said it struck several Hezbollah members allegedly involved in transferring weapons.

The IDF said it killed a Hezbollah member near the Beaufort fortress after he opened fire on Israeli troops from inside a building.

Two Israeli soldiers were lightly injured in the close-quarters encounter, according to the military.

Oil prices near $100 as US-Iran strikes hit tankers, Strait of Hormuz flows plunge

Brent crude rises 0.92% to $97.17 a barrel, after touching a six-week high of $97.93.

WTI crude climbs 79 cents to $92.27 a barrel, also hovering near a six-week high.

Oil prices have extended last week’s gains, with Brent up about 8% and WTI nearly 10% after fresh US-Iran attacks.

Saudi Aramco’s Jazan oil refinery was reportedly attacked, with the extent of damage still being assessed.

US forces struck three Iranian oil tankers, including one near the Kharg Island oil export hub.

Iran’s Revolutionary Guard said it targeted three tankers using unauthorised routes through the Strait of Hormuz and three US-linked vessels elsewhere.

Maritime intelligence firm Marisks called the attacks a “major escalation”, warning that commercial shipping is increasingly being caught in the conflict.

Strait of Hormuz traffic has fallen sharply, with an average of just 10 commodity ships crossing daily over the past 10 days—the lowest since May.

IAEA chief Rafael Grossi said giving the UN nuclear watchdog access to key Iranian nuclear facilities could have “very positive repercussions” for Tehran.

Grossi urged Iran to engage in serious dialogue with the IAEA, saying access to the sites would be the quickest route to a positive outcome.

Grossi called the continued lack of access to Iranian nuclear sites “regrettable”, stressing that the outstanding issues will not disappear without inspections and access.

16 crew members from Saudi Arabian tanker Sidr was rescued by Oman on Monday

The US is increasing diplomatic pressure on Iran by proposing that Tehran be referred to the United Nations Security Council over its stonewalling of nuclear inspectors, who have been unable to verify the location of the country’s stockpile of near-weapons-grade uranium.

UN High Commissioner for Human Rights Volker Türk has appealed to both sides to choose diplomacy over attacks.

“Recent reports of civilian deaths and injuries, including at a wedding in Hormozgan province, are particularly concerning”, he told the Human Rights Council, adding, “The geopolitical and economic impacts of this entirely avoidable crisis are again reverberating around the world.”

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf has issued a warning to US oil companies. His warning comes in the wake of US War Secy Pete Hegseth's threat to ‘destroy’ tankers from Iran.

“It’s simple: the oil and gas production chain here is sprawling, accessible, and exposed. American oil and gas companies across these waters and facilities share that exposure,” Ghalibaf posted, adding, “Strike our assets, and you get struck.”

Yemen's Iran-backed Houthis on Monday accused Saudi Arabia of carrying out airstrikes around the country as the rebels press a deadly offensive to seize territory bordering the strategic Bab al-Mandab strait, AFP reported.

The US is increasing diplomatic pressure on Iran by proposing that Tehran be referred to the United Nations Security Council over its stonewalling of nuclear inspectors, who have been unable to verify the location of the country’s stockpile of near-weapons-grade uranium, Bloomberg reported.

Iran said it will announce a new restricted zone in the Gulf in the coming days, along with maps of a new shipping corridor through the Strait of Hormuz, as a weekend exchange of strikes on shipping sent oil prices higher on Monday.

The United Arab Emirates' energy exports will not be held hostage, and rebuilding trust with Iran may take decades, UAE presidential adviser Anwar Gargash said at the Hili Forum in Abu Dhabi on Monday.