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U.S. strikes Iran’s Larak Island; Tehran fires missiles at Jordan bases

Washington conducts limited strikes on Revolutionary Guards’ rocket launchers in the Strait of Hormuz after detecting imminent threats. Iran retaliates with ballistic missiles intercepted by Jordan’s armed forces.

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Sophie Laurent · FX & Rates Desk · 31 Aug 2026 · 02:49 · 2 min read
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U.S. strikes Iran’s Larak Island; Tehran fires missiles at Jordan bases

U.S. forces carried out limited precision strikes on two rocket launchers operated by Iran’s Islamic Revolutionary Guard Corps (IRGC) on Larak Island in the Strait of Hormuz on Sunday, the first such action since late July, U.S. Central Command said.

The strikes targeted IRGC units preparing to launch rockets equipped with sea mines into the waterway, which Washington deemed an imminent threat to shipping. Iran responded by firing ballistic missiles at two U.S. bases in Jordan, where Jordan’s armed forces intercepted eight incoming missiles that entered the country’s airspace. Iranian state media claimed the attack killed and wounded several soldiers and civilians, vowing further retaliation, while a Fox News report citing a U.S. source said nearly all missiles were intercepted with no significant impact.

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Shipping data showed the number of visible commodity vessels transiting the Strait of Hormuz fell to five per day over the weekend, though actual traffic may be higher due to vessels disabling automatic identification systems. President Donald Trump has asserted the waterway remains open, while the IRGC’s navy described the claim as an "obvious lie" and said it remains closed without Iranian permission. Before the blockade, the strait carried nearly one-fifth of global crude oil and liquefied natural gas shipments.

U.S. Treasury Secretary Scott Bessent said Washington plans to roll out new secondary sanctions weekly, initially targeting banks with ties to Iran and its business partners. The strategy aims to intensify economic pressure rather than rely solely on military measures. On Friday, penalties were imposed on the United Arab Emirates branches of Egypt’s Banque Misr over alleged financial links to Iran.

Bessent told Reuters the administration will "start with the banks" and warn financial institutions that facilitating transactions involving Iranian funds is unacceptable. "You’re going to see a lot more of these every week," he said.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

More from Sophie Laurent →
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