Middle East conflict escalates as Iran, Houthis threaten oil supplies

A US-contracted vessel carrying American personnel was struck near the Strait of Hormuz in an Iranian attack involving drones and a missile, according to reports, in the latest escalation threatening one of the world's most important energy and shipping corridors.

Sources cited by Fox News said the vessel was targeted by four Iranian drones and at least one missile. One projectile struck the ship, causing minor injuries, including smoke inhalation, according to initial reports.

Several personnel were reportedly treated for their injuries.

The incident has not yet been accompanied by a detailed public account from the US military. The number and type of weapons involved cannot be immediately confirmed.

The attack comes as the confrontation between Washington and Tehran increasingly spills into commercial shipping. Iran has repeatedly targeted vessels around the Strait of Hormuz, while US forces have carried out strikes against Iranian maritime and military targets and is imposing a naval blockade on Iran.

US forces have also struck Iranian oil tankers, while Iran has claimed attacks against multiple ships in and around the Gulf.

US President Donald Trump said Thursday that the United States is “hopefully toward the end” of its war with Iran, while claiming that Washington has been in direct contact with Tehran over a possible agreement.

Asked by reporters whether he had recently heard from the Iranian side, Trump said he had spoken with Iranian officials “directly”, according to reports published Thursday. He again said Iran was eager to reach a deal.

The comments represent the clearest recent indication from Trump that his administration sees a potential diplomatic pathway out of the nearly seven-month conflict — although there has been no announcement of a final agreement or ceasefire.

Iranian security forces tightened their presence across western cities on Wednesday as shopkeepers closed businesses and workers stayed home to mark the fourth anniversary of the death of Mahsa “Jina” Amini, whose death in police custody in September 2022 triggered one of the Islamic Republic’s largest anti-government protest movements.

The shutdown followed a call by an alliance of Iranian Kurdish political groups for a general strike on September 16, urging businesses to close and workers to remain at home.

Videos and reports reviewed by Iran International and other Iranian rights-monitoring outlets showed shuttered shops and bazaars in Saqqez, Sanandaj, Mahabad, Bukan, Oshnavieh, Paveh, Divandareh, Kermanshah and Marivan.

The UAE has condemned in the strongest terms the Houthi group’s attempt to target Mecca in the Kingdom of Saudi Arabia using a drone.=

In a statement, the Ministry of Foreign Affairs (MoFA) affirmed that the targeting constitutes a flagrant violation of the sovereignty of the Kingdom of Saudi Arabia and a threat to its security and stability.

The Ministry reaffirmed the UAE’s solidarity with the Kingdom of Saudi Arabia and its support for all measures aimed at safeguarding its security and stability.

The Gulf kingdom "reaffirms its legitimate right to take all necessary measures to defend the security of the two holy mosques, the pilgrims, and the entire Saudi territory, its citizens, and its residents," the foreign ministry said in a statement.

A destroyed aircraft, shredded tents, trailers that have been ripped apart: images taken by US troops show significant damage from Iranian strikes targeting American military assets in the Middle East, CBS News reported.

The undated images - taken at a base in Saudi Arabia and two facilities in Kuwait - were provided to CBS by American personnel on condition of anonymity due to US military restrictions, the outlet said late Tuesday.

"This is major damage to our bases that hasn't been communicated to the American public," CBS quoted one US service member as saying.

"We're standing there with our eyes closed getting punched in the face," the service member added.

The Pentagon's inspector general released a report earlier this week that said the military's Central Command (CENTCOM) - which is responsible for US forces in the Middle East - had reported widespread damage to American facilities and equipment.

CENTCOM said Iranian strikes "damaged and destroyed hundreds of buildings and structures at US bases in the region," the report said.

"In addition, dozens of US aircraft were destroyed or damaged" during the war, the report said.

The Defence Department estimated the cost of the war at $33.4 billion as of June 29, but that figure "does not include costs for infrastructure repairs," according to the report.

Israeli forces carried out fresh airstrikes and artillery attacks across southern Lebanon, according to Lebanon's state-run National News Agency, underscoring how fragile the June ceasefire between Israel and Hezbollah has become.

Recent attacks have hit areas around Nabatieh, including the Ali Al-Taher forest and the towns of Nabatieh Al-Fawqa and Kfar Tebnit, with multiple strikes reported in quick succession.

Israel has also carried out demolitions and other military operations in southern villages. Israel says its operations are aimed at Hezbollah military infrastructure and weapons activity.

On September 10, the Israeli military said it had destroyed a major underground Hezbollah complex at the Ali Al-Taher ridge, describing a roughly 2-km network containing weapons, command facilities and living quarters.

The operations followed renewed tensions after Hezbollah launched drone attacks toward Israel.

UN Secretary-General Antonio Guterres has called for urgent de-escalation across the Middle East, urging governments to return to diplomacy, protect civilians and humanitarian operations, and restore freedom of navigation amid the continuing Iran war and widening regional instability.

His appeal comes as the conflict is increasingly affecting the Gulf, the Strait of Hormuz, the Red Sea, Yemen, and Gaza creating overlapping security, humanitarian and energy crises.

The UN chief's appeal comes as commercial shipping through the Strait of Hormuz has fallen sharply. The disruption has therefore extended the consequences of the conflict well beyond the battlefield.

Iran has also imposed what it describes as new protocols for vessels using the waterway.

Guterres' call for freedom of navigation is significant because the issue is no longer simply about military vessels: commercial shipping, energy supplies, insurance costs and global trade are all being affected.

The United States reiterated its support for Yemen’s internationally recognised government and expressed solidarity with it against "Iran-backed Houthi aggression", the US Embassy in Yemen said on Wednesday.

The embassy said Chargé d’Affaires Jonathan Hop discussed the situation with Yemeni Foreign Minister Afrah al-Zouba and reaffirmed Washington’s backing for the government in Aden.

“The United States of America stands in solidarity with the Yemen government and its people against Iran-backed Houthi aggression,” the embassy said in a post on X.

Yemen’s government forces, meanwhile, said they have targeted Houthi positions and equipment near Mocha and carried out drone attacks in northern Marib.

UNICEF said at least nine children had been killed and more than 104,000 people displaced during two weeks of fighting in Yemen.

Oil prices fell after Saudi Arabia offered additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman, easing fears that damage to a key Saudi pipeline would trigger a larger supply shock.

The move gives Riyadh a partial workaround — but does not remove the wider risk from conflict around the Strait of Hormuz and the Red Sea.

Saudi Arabia's offer of loadings through ship-to-ship transfers off Sohar, Oman, followed drone attacks that damaged the kingdom’s East-West pipeline to the Red Sea, according to people familiar with the arrangements.

The additional supply is intended for Asian refiners and is designed to blunt the effect of the pipeline disruption. Brent crude settled down $2.92, or 2.7%, at $105.83 a barrel on Wednesday. WTI fell $3.40, or 3.2%, to $102.43. A smaller-than-expected draw in US crude inventories added to downward pressure on prices.

In early Asian trading on Thursday (Sept. 17, 2026 at 9.17 am Beijing time) WTI Crude fell by another 1.20% to $101.2, while Brent Crude dropped 1.43% to $104.3. Murban Crude was slightly up by 0.04% to $123.8, though prices remain significantly above levels seen before the latest regional escalation.

A war-damaged residential building collapsed in Gaza City early Wednesday, killing at least 21 people and injuring 45 others, according to Gaza's Civil Defence, as rescuers searched the rubble for survivors and bodies.

The six-storey Al Saada building in the Tal Al Hawa area of western Gaza City had been damaged by Israeli strikes earlier in the war. Gaza Civil Defence said the structure had been struck multiple times, including in 2024 and March 2025, and had previously been considered unsafe.

More than 100 displaced Palestinians were staying in the building, according to reports, including families who had nowhere else to go.

The collapse also affected nearby homes and tents. Civil Defence said its teams eventually recovered the bodies of 21 people and transported 45 injured people to hospitals.

The death toll includes children. Reports have differed on the exact number, with Palestinian sources cited by international media putting the number of children among the dead at between eight and 12.

The rescue operation was severely hampered by a lack of heavy machinery.

Civil Defence teams, residents and volunteers searched through tonnes of shattered concrete, at times digging by hand to reach people believed to be trapped underneath.

Egyptian President Abdel Fattah al-Sisi rejected any plans for Palestinian displacement, hours after Israel's defence minister said the army would "finish the job" in Gaza and remove Palestinians.

During a visit by Palestinian president Mahmoud Abbas, Sisi "reiterated Egypt's firm stance against the displacement of the Palestinian people or any attempt to annihilate the Palestinian cause".

Abbas praised Egypt's "steadfast positions", Palestinian news agency WAFA reported. Egypt shares the only land border with the Gaza Strip that is not controlled by Israel, and has since 2023 rejected plans to displace the territory's more than two million people into the Sinai Peninsula.

Israel's defence minister said Wednesday it was only a matter of time before the country resumes full-scale war in Gaza and moves to force out its two million Palestinians.

Israel Katz, who is known for outspoken remarks, was responding to criticism from another right-wing contender ahead of October 27 elections.

Katz said 70 percent of Gaza had already been emptied of its population in the Israeli offensive launched after the October 7, 2023 attack by Hamas.

A US military task force is working to enhance intelligence sharing and planning assistance for Saudi forces, a US official said late on Tuesday, as the kingdom faces attacks from Yemen's Iran-backed Houthi fighters.

US Central Command "has a task force in place for enhancing intelligence sharing and planning support with Saudi forces," the official said on condition of anonymity, adding that the military command "maintains a strong security alliance with our Saudi partners in confronting regional challenges."

US Vice President JD Vance has warned that the widening Iran conflict could trigger a major energy crisis as disruptions spread across both of the Middle East's critical maritime chokepoints — the Strait of Hormuz and Bab Al Mandab.

The warning has become more consequential in recent days as Iran's pressure on shipping around Hormuz has coincided with a rapid Houthi advance along Yemen's Red Sea coast.

The Houthis said on Wednesday that Saudi Arabian jets had carried out 40 airstrikes over the past day targeting western Yemen, where the Iran-backed group recently made substantial gains along the Red Sea coast.

"Saudi warplanes launched 40 airstrikes using F15 aircraft that took off from Khamis Mushait Airbase, targeting the provinces of Taiz, Marib, and Hodeidah over the past 24 hours," the Houthi's military spokesman said Yahya Saree said in a statement on social media.

Day 201: Houthis: Saudi Arabia launched 40 strikes in Yemen

Day 200: Houthi attacks injure Saudi civilians

Day 199: Trump says 'open' to engaging with Iran

Day 198: Saudi pipeline attack, Yemen crisis add to regional tensions

Day 197: Saudi Arabia shuts pipeline after attacks as Houthis seize Yemen's Red Sea coast