US-Iran tensions mount as Strait of Hormuz crisis disrupts tanker traffic, oil prices; Houthi attacks injure Saudi civilians

The Ministry of External Affairs (MEA) said that the search and rescue operations are continuing to find the missing Indian seafarer after a commercial vessel carrying 14 Indian nationals was attacked off the coast of Oman on Sunday.

"Regarding the missing seafarer, this attack happened off the coast of Oman. It was a Panama flagship on which we had 14 Indian nationals or seafarers, of whom 13 have been rescued, and we deeply thank the Omani authorities for rescuing our nationals. One Indian national is missing; the seafarer was on board. Search and rescue operations continue with the help of the Omani authorities," said Randhir Jaiswal, official spokesperson of the MEA, during a bi-weekly media briefing in New Delhi.

He said that the Indian embassy in Oman is closely monitoring the situation and proactively coordinating with the Omani authorities in the ongoing operation.

"Having said that, let me say that targeting of commercial shipping, targeting of seafarers civilians and civilian infrastructure in the region is unacceptable to us. We also urge that free and safe navigation and flow of commerce through international and national waterways in the region be restored at the earliest," the MEA spokesperson noted.

Sri Lanka's economic growth slowed to 4.2 percent in the second quarter, the statistics office said Tuesday, as the country grapples with fuel shortages and a tourism slump triggered by the Middle East conflict.

Import-dependent Sri Lanka has raised fuel prices by about 50 percent as the war, which broke out in February, caused a surge in global energy costs.

Growth in April to June had slowed compared to this year's first quarter, when the figure was at 5.1 percent, as well as year-on-year, down from 5.0 percent during the same period in 2025.

Qatar on Tuesday warned of dire consequences if the vital Bab al-Mandab waterway were to close, after a months-long blockade of the Strait of Hormuz and recent Houthi gains on the Red Sea coast.

"The world is suffering enough with the closure of the Strait of Hormuz, so we cannot also afford to add the Bab al-Mandab into that equation," Qatar foreign ministry official Ibrahim Al Hashmi told reporters.

He said a closure of the southern entrance to the Red Sea would be "catastrophic for the entire world. And we are already seeing the consequences... so Qatar is pushing for diplomacy, dialogue".

The Maritime Security Centre, in coordination with relevant authorities, is continuing operations to tow the oil tanker (ELGAIA), which flies the flag of the Republic of Panama, to a port in the Sultanate of Oman. This follows the extinguishing of a fire that broke out in the vessel's engine room after it came under attack earlier, at a location 1.3 nautical miles northeast of Musandam Governorate.

One of the Royal Navy of Oman's vessels carried out an evacuation of 23 members of the tanker's crew and provided them with the necessary medical care in coordination with the relevant health authorities. Search operations continue for two crew members who remain unaccounted for.

The UN Security Council is to meet Tuesday after Yemen's Iran-backed Houthis last week seized control of the country's Red Sea coast and the Bab al-Mandab Strait, diplomatic sources said.

France, which holds the presidency of the Security Council this month, requested the meeting to be held at 3 pm (1900 GMT) in New York, one of the sources said.

Bab al-Mandab is a vital shipping corridor linking Europe and Asia via the Red Sea that has become vital as the wider US-Iran war chokes the Strait of Hormuz.

Saudi Arabia on Tuesday issued brief alerts over possible attacks in the holy city of Mecca and in the Jeddah and Taif governorates, after the kingdom was repeatedly targeted by the Iran-backed Houthis in recent days.

The alerts, including the first one issued in Mecca since the Middle East war began, were quickly lifted, according to the Saudi civil defence. They came a day after a series of ballistic missile and drone attacks launched from Yemen, which injured 13 people in the kingdom's south.

The UK Maritime Trade Operations centre (UKMTO) has issued an attack warning (135-26) after receiving a delayed report of an incident in the Strait of Hormuz. A verified source reported that a vessel was struck by an unknown projectile on 14 September at 2040 UTC, with the warning issued the following day. UKMTO said no damage or environmental impact has been reported so far, and authorities are investigating. Vessels transiting the strait have been advised to exercise caution and report any suspicious activity.

Bahrain's Chief Prosecutor for Terrorism Crimes announced that the High Criminal Court has convicted a defendant of endorsing Iran's attacks on the kingdom, after he posted material on social media in support of the strikes. The court handed down a five-year prison sentence, a BD2,000 fine, and ordered the confiscation of seized items. The case originated from a Cybercrime Directorate report that flagged a social media account containing images, videos, and comments glorifying the attacks.

Average diesel prices in the United States struck a record high of just under $6.27 a gallon Tuesday, the motorists' association AAA said, pressuring President Donald Trump ahead of midterm congressional elections.

The price of the fuel used largely in road hauling, agriculture and construction hit $6.2694, according to the association, as the Middle East war tightens supplies and Ukraine strikes Russian refineries.

"The diesel and gas oil markets remain extremely tight," Arne Lohmann Rasmussen, chief analyst at Global Risk Management, said in a client note Tuesday. 

"A halt to Ukrainian attacks on Russian refineries would help the diesel balance, but the shortage of refined products from the Middle East matters far more," he said.

Average US diesel prices jumped above $6 a gallon for the first time on Friday, having surged from $3.7577 a gallon at the start of the US-Iran war, according to the AAA.

Iran's Foreign Minister Abbas Araghchi will visit Beijing this week and meet with his counterpart Wang Yi, China's foreign ministry said on Tuesday.

The two men - who last met in July - will hold talks on Wednesday, the ministry said, as Beijing seeks to mediate in Iran's months-long war with the United States.

The Kingdom of Bahrain strongly condemned and denunced the terrorist attacks carried out by the Iran-backed Houthi terrorist militia using ballistic missiles and drones against the cities of Khamis Mushait, Abha and Taif in the Kingdom of Saudi Arabia, as part of its continued targeting of civilians and civilian objects. The attacks resulted in injuries to a number of civilians and material damage to several residential properties and vehicles. The Kingdom considered these attacks a flagrant violation of international law, international humanitarian law, the Charter of the United Nations and relevant United Nations Security Council resolutions.

In a statement, the Ministry of Foreign Affairs affirmed the Kingdom of Bahrain’s full solidarity with the Kingdom of Saudi Arabia and its full support for all necessary measures it takes to safeguard its sovereignty, security and stability, and to protect its citizens and residents in accordance with Article 51 of the Charter of the United Nations. It reaffirmed that the security and stability of the Kingdom of Saudi Arabia are an integral part of the national security of the Kingdom of Bahrain, and wished those injured a speedy recovery.

A warning has been issued by the National Early Warning Platform in Khamis Mushait Governorate to alert of a potential danger. Residents are urged to remain calm and follow official instructions, immediately proceed to the nearest safe place inside a building or an interior room away from windows, and stay there until the danger has passed. They should not leave their home or building, should stay away from open areas, windows and glass, and should not stand on balconies or roofs.

Those outdoors should enter the nearest building or take shelter behind a solid barrier. People are asked to avoid crowds or dangerous areas and to refrain from taking photos. Anyone driving when the warning is received should pull over to the side of the road, away from bridges and high-rise buildings. Any danger noticed should be reported to the emergency number (911) in Makkah, Madinah, Riyadh and the Eastern Province, or (998) elsewhere in the Kingdom, and residents should follow instructions issued by the competent authorities through official channels.

Federal prosecutors in New York have filed a civil forfeiture complaint targeting approximately $61 million in cryptocurrency, alleging the funds are proceeds from black-market sales of sanctioned Iranian crude oil intended to finance Iran's government and military, including the IRGC.

Investigators say a network of interlinked cryptocurrency addresses, referred to in the complaint as "Entity A," has moved more than $1.5 billion in Iranian oil proceeds, funneling funds to IRGC-linked money services businesses and an Iranian cryptocurrency exchange.

Deputy US Attorney Sean S. Buckley said the action reflects efforts to cut off funding that Iran uses to "threaten the lives and safety of the citizens of the United States and elsewhere."

The FBI's New York Field Office led the investigation alongside the Justice Department's National Security and Criminal Divisions.

The complaint is a civil allegation only; the funds cannot be permanently forfeited unless a court rules in the government's favor.

A top Iranian security official said early on Tuesday that Iran will not negotiate with the United States unless its conditions are met.

Secretary of Iran's Supreme National Security Council Mohsen Rezaei made the remarks in a post on social media platform X in response to US President Donald Trump's remarks on Monday, in which Trump claimed that Tehran wanted to make a deal "quickly and badly" and that Washington could resume negotiations with it.

"The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the USA will choose to engage -- The concept of which we are open to," Trump wrote on Truth Social.

"Don't get distracted by the US president's mixed signals -- from 'no negotiations' to 'we're ready to talk.' The stakes around oil and the straits have changed. Damage control won't stop what's coming," Rezaei said.

"No talks until Iran's conditions are met. Period!" he stressed.

Gold prices held steady on Tuesday after touching a more than one-month low in the previous session, while investors geared up for the US Federal Reserve’s policy decision for clues on the future path of monetary policy.

Spot gold was little changed at $4,300.96 per ounce, as of 01:57 GMT, after hitting its lowest point since 7th August on Monday.

US gold futures were down 0.3 percent at $4,341.10. Spot silver edged 0.1 percent higher to $63.28, platinum lost 0.1 percent at $1,757.46 and palladium fell 0.7 percent to $1,283.61.

The Defense Department's inspector general revealed Monday that the US is facing an ammunition shortfall from its war with Iran, with Operation Epic Fury costing an estimated $33.4 billion between February 28 and June 30, including $22.3 billion on expended munitions alone. The report cited strategic inventory shortfalls and industrial bottlenecks, and listed losses of four F-15s, one damaged F-35, seven damaged KC-135 tankers and up to 30 destroyed MQ-9 Reaper drones. Trump has downplayed the concerns, insisting the US has "virtually unlimited" ammo and is producing more weapons than ever. CNN has previously reported the US has nearly exhausted 80 percent of its THAAD interceptor stock.

Saudi Arabia warned Tuesday it will react "firmly" to Yemen's Houthis, after a series of attacks carried out by the pro-Iranian rebels using ballistic missiles and drones wounded 13 civilians in the country's south.

The Houthis have been engaged in renewed fighting with Saudi-backed government forces since Yemen's civil war reignited in July, when the group declared a maritime blockade on Riyadh and began targeting its ships in the Red Sea.

The group seized control of Yemen's Red Sea coast and the Bab al-Mandab Strait last week, which has become vital as the wider US-Iran war chokes the Strait of Hormuz, in a significant blow to Yemeni government forces.

Thirteen civilians were injured and several homes and vehicles damaged after Houthi missile and drone attacks struck three Saudi cities, the Coalition to Support Legitimacy in Yemen said early Tuesday. Coalition spokesman Major General Turki Al Maliki said the group launched ballistic missiles and drones at civilian areas in Khamis Mushait, Abha and Taif. The attacks left 13 people with minor to moderate injuries and damaged seven homes and two vehicles, he said, calling it part of an escalating Houthi campaign targeting civilians and civilian infrastructure.

Tanker traffic through the Strait of Hormuz is "showing signs of recovery", with very large crude carriers (VLCC) moving through the strategic waterway — in both directions and during daylight hours, according to maritime intelligence firm TankerTrackers.com.

In an update posted early on Tuesday (Sept. 15, 2026), the tracking site said its analysis of satellite imagery captured as of Sept. 14 showed "bi-directional daytime" traffic by VLCC supertankers in the strait.

Citing recent satellite data as of Sept. 14, 2026, the company also reported increased volumes of crude oil, liquefied natural gas (LNG) and liquefied petroleum gas. (LPG) being transferred between vessels through "ship-to-ship (STS) operations" in the Gulf of Oman, outside the Strait of Hormuz.

Concern over Iran’s nuclear program has intensified as the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), said it had conducted "almost no inspections" in the country for more than six months, while tensions surrounding Hormuz deepened and Yemen’s Iran-backed Houthis claimed another attack on Saudi Arabia.

The US Treasury Department is escalating its financial campaign against Iran: now, Treasury Secretary Scott Bessent is asking people around the world to report businesses, banks and individuals allegedly helping Tehran evade sanctions or move money through the international financial system.

Bessent said the appeal is part of "Operation Economic Outcast", a campaign launched in August to cut what Washington calls the remaining financial lifelines sustaining the Iranian regime and its networks.

Bessent said people with actionable information could be eligible for a financial reward regardless of where they live or who employs them.

The claim by Iran's Islamic Revolutionary Guard Corps (IRGC) that a Panama-flagged oil tanker recently struck a naval mine in the Strait of Hormuz is false, according to the US military.

In a post, the Central Command, claimed that the Panama-flagged crude oil tanker El Gaia was struck by an Iranian missile last month and "rendered inoperable".

"This weekend, Iran struck the tanker again with a drone while the ship sat in waters of the coast of Oman. The tanker is currently being towed by a regional partner. The IRGC's false claim is yet another example of their lies and intimidation attempts while they try to impede commercial vessels in the strait."

Brent crude traded near $105.70 a barrel Tuesday as Gulf Arab states postponed talks with Iran on reopening the Strait of Hormuz and Saudi Arabia launched retaliatory strikes against Yemen’s Houthi movement, adding to fears of a wider regional conflict and prolonged disruption to global oil supplies.

The planned meeting in Oman between Iran and Gulf Cooperation Council states had been expected to address a proposed temporary route for commercial shipping through the Strait of Hormuz, the vital oil chokepoint that carried about one-fifth of global oil exports before the war. The postponement of the Oman talks leaves no clear timetable for a regional agreement on shipping. Iran has said that an arrangement with Oman would not automatically reopen Hormuz, insisting that broader demands, including those related to the U.S. naval blockade, must first be met.

A supertanker caught fire after striking naval mines while attempting to pass through a restricted area south of the Strait of Hormuz, Iran’s Islamic Revolutionary Guard Corps (IRGC) said in a statement carried by semi-official Fars news agency.

The IRGC Navy identified the vessel as the “El Gaia” and said efforts to contain the blaze had failed, leaving the ship fully engulfed in flames.

The IRGC said warnings had been issued about the risks of using the route and reiterated that the Strait of Hormuz remains under its surveillance and control.

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

Day 196: Iranian strikes hit US aircraft in Jordan

Day 195: Iran Guards say target unmanned US sea drone in Hormuz

Day 194: Iran Guards say war can end if US halts threats, meets demands

Day 193: IRGC Navy warns tanker crews near Kuwait, Bahrain