INTELBRIEF
September 1, 2026
Iran and U.S. Trade Blows with Potential to Return to Full-Scale Conflict
Bottom Line Up Front
- The fragile ceasefire and current status quo of the war between the United States and Iran were tested over the weekend as the U.S. military launched its first strikes in over a month and Iran responded with strikes against U.S. bases in Jordan.
- The U.S. is reportedly considering a more extended campaign that would be aimed at Iranian radar, air defense, and anti-ship capabilities along the Strait, capabilities that Iran is currently believed to be rebuilding.
- The return to fighting comes on the heels of several high-ranking U.S. military leaders warning the Secretary of Defense that continuing large-scale military operations against Iran is becoming unsustainable and risks opening the force to other vulnerabilities, including the ability to confront other U.S. adversaries.
- With both the U.S. and Iran believing that they have the leverage, the most likely scenario is continued conflict, with no clear off-ramps available and no immediate end in sight to a war that has rattled the global economy and destabilized large parts of the Middle East
The fragile ceasefire and current status quo of the war between the United States and Iran were tested over the weekend as the U.S. military launched its first strikes in over a month. U.S. forces fired on targets on Larak Island, a six-mile-long island that serves as an important logistical hub — a military and shipping control point for Iranian forces near the Strait of Hormuz. According to U.S. Central Command (CENTCOM), the strikes were targeting Iranian rocket launchers that were attempting to disperse sea mines in the Strait. Iran responded by firing a barrage of missiles at U.S. bases in Jordan, while the Jordanians claimed to have intercepted eight missiles. CENTCOM spokesman Capt. Tim Hawkins stated: “Last week, CENTCOM completed cleaning sea mines from the strait’s international shipping routes,” going on to say that “[w]e simply will not allow Iran to emplace more mines.”
The U.S. attack on Iranian rocket launchers is an effort to protect civilian mariners, facilitate commercial shipping, and resuscitate global commerce through the Strait, which has become the central focus in a battle for leverage. The U.S. is reportedly considering a more extended campaign that would be aimed at Iranian radar, air defense, and anti-ship capabilities along the Strait, capabilities that Iran is currently believed to be rebuilding. In a recent incident, Iran fired an anti-aircraft missile at an F-35 fighter jet that was providing cover to transiting ships. A more sustained U.S. military campaign against Iranian assets in the Strait is an attempt to further loosen Iran’s grip on this vital waterway, which sees approximately one-fifth of the world’s energy supplies transit through.
U.S. President Donald Trump has vowed to respond, telling Fox News: “We’re going to hit them hard. There will be a response.” Trump elaborated with a post on Truth Social, commenting: “Iran is officially a Failed Nation. IT IS DEAD! They have no Navy, they have no Air Force, they have no currency, they are not paying their soldiers or police, Inflation is at 300%, and their leadership is in total disarray and incapable of properly representing the country. The only thing they have is FAKE NEWS from the USA, a willingness to kill their protesters (now over 100,000 people dead. They must be tried for war crimes against humanity!), and a good line of ‘BULLSHIT.’ Thank you for your attention to this matter! President DONALD J. TRUMP.” The President also posted an AI-generated video depicting U.S. forces attacking Kharg Island. In an interview yesterday, President Trump ruled out using a nuclear weapon against Iran, calling the question from a reporter “stupid,” and suggesting that there was no need for such a weapon against an adversary that had been “totally defeated militarily.”
And while some expect a full-throated military response from Washington, other experts remain less sanguine, especially given the munitions shortfalls that have plagued the U.S. since the early weeks of the war, which recently eclipsed the six-month mark. As recently reported by the Washington Post, several high-ranking U.S. military leaders have warned Secretary of Defense Pete Hegseth that continuing to wage large-scale military operations against Iran is becoming unsustainable and also risks opening the force to other vulnerabilities, including the ability to confront other U.S. adversaries. U.S. military readiness and interoperability have been negatively impacted by the ongoing conflict, with senior leaders sounding the alarm and even taking a “non-concur” position with the Secretary of Defense, meaning they will execute the orders given, but disagree with them from a strategic perspective.
A reinvigorated U.S. naval blockade on Iranian ports and biting new sanctions have further strangled Iran’s economy. In the ongoing contest to see which side will blink first, the Trump administration seems confident that Iran’s faltering economy is a weakness its rulers will not be able to handle effectively. Inflation is approaching 70 percent, and the International Monetary Fund has forecast that Iran’s economy will contract by more than five percent this year. The cost of basic goods and services has skyrocketed, and unemployment has soared. It remains unclear how Tehran will respond to Washington’s “Economic D-Day,” or Operation Economic Outcast, announced last week by Treasury Secretary Scott Bessent. Over the course of the first six months of the war, the Islamic Revolutionary Guard Corps (IRGC) has threatened commercial shipping in the Strait, attacked U.S. military bases in the region, and sought to hold Gulf Arab states hostage by attacking their energy infrastructure. The Military Times recently reported that Iran has inflicted approximately $400 million worth of damage to U.S. Naval Support Activity in Manama, Bahrain.
IRGC leadership remarked that the U.S. strikes were “a strategic and fatal error by the Trump administration” and would be met with “severe repercussions.” Iran still retains its proxy forces, too, including Lebanese Hezbollah, Iraqi Shia militias, and the Houthis in Yemen, who have threatened ships near the Bab el-Mandeb and the broader Red Sea region. As Iran analyst Danny Citrinowicz argued on X, “the fundamental problem is geography.” Even with a smaller footprint, Iran recognized that its asymmetric approach is capable of disrupting commercial traffic through such a narrow waterway. From the earliest days of the war, it has been evident that the Trump administration failed to prepare for the high likelihood that Iran would attempt to shut down the Strait. Now, as both sides are locked in a mutually hurting stalemate, the question is which country can withstand pressure for longer. And with the U.S. and Iran both believing that they have the leverage, the most likely scenario is continued conflict, with no clear off-ramps available and no immediate end in sight to a war that has rattled the global economy and destabilized large parts of the Middle East.