U.S. Strikes Iran to Block New Sea Mines in Strait of Hormuz

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Luke Vargas (0:33)

The US strikes Iranian targets near the Strait of Hormuz, sending oil prices higher on concerns of a flare-up in fighting. Plus, President Trump's China tariffs propel Vietnam as manufacturers shift production.

Stu Wu (0:47)

These countries were at war 51 years ago and didn't even have normal relations until the Clinton administration lifted a trade embargo. So, they've gone from having no trade to having the biggest trade surplus with the US in just a generation.

Luke Vargas (1:01)

And NASA sends its next-gen telescope into orbit. It's Monday, August 31st. I'm Luke Vargas for The Wall Street Journal, and here is the AM Edition of What's News, the top headlines and business stories moving our world today.

Oil prices are rising this morning with Brent crude futures trading above $90 a barrel. After fresh fighting yesterday between the US and Iran, according to US. Central Command, American forces attacked a pair of Iranian rocket launchers on an island in the Strait of Hormuz, saying they had been preparing to fire rockets filled with sea mines into the waterway. The US last week said it had finished clearing mines from the Strait. Shortly after the strike, US forces defended against missiles launched at Jordan, which hosts nearly 4,000 American troops.

Well, the conflict in the Middle East along with the war in Ukraine has led to a divergence in fortunes for two of the world's great powers, which will be on full display later today. Russian President Vladimir Putin is due to meet with Chinese leader Xi Jinping at a time when Moscow is increasingly dependent on Chinese imports and Beijing buying its oil. Thomas Grove is the Journal's Russia Bureau Chief.

Thomas Grove (2:14)

What we've seen over the last several years, particularly is Russia's increasing reliance on China as an economic partner, has made it almost hostage in some ways, particularly when it comes to its domestic market. So as time progresses, you see a weakening of the Russian economy and a stagnation, whereas China's role is just getting stronger and stronger both globally, but I think also within the relationship as well.

Luke Vargas (2:37)

Thomas says Beijing could use that upper hand to push Moscow out to the negotiating table with Ukraine or even prevent a Russian attack on NATO.

Thomas Grove (2:44)

The status quo really suits China so well, because it keeps Russia and the Russian economy relatively hostage to China. So I think they would be happy to see things stay as they are and just watch the Russian economy bleed, so to speak. What I think they don't want though is any kind of escalation within Ukraine, perhaps, but I think the red line is when you start getting into Europe and NATO.

Luke Vargas (3:07)

But while the two powers want different outcomes from the Ukraine war, Thomas says their interests converge on Iran.

Thomas Grove (3:13)

Russia wants to keep Iran afloat by all means. It's providing drone technology to Iran, intelligence as we've reported out to Iran as well. China has also supported Iran in various ways. I think this is one focal point for both of them in terms of trying to undermine this kind of Western global order.

Luke Vargas (3:28)

Well, another potential threat to the global order and the financial system in particular is AI. G20 finance officials meeting today in Asheville, North Carolina are sent to receive that warning from none other than Andrew Bailey, the head of the Bank of England and the G20's financial stability board, as our Paul Hannan explains.

Paul Hannan (3:47)

His job is to make sure or try to make sure that all the regulators are working together to preserve the stability of the global financial system, you know, that they're making sure that their financial institutions do not act as a weak link in a global effort to allow this technology to be developed for good without doing really severe harm. You know, we've seen some recent instances in which they've escaped sandboxes and decided to hack into the systems of other institutions, and that sort of thing really worries financial regulators.

Luke Vargas (4:21)

Paul Hannan is the economics editor for Dow Jones Newswires.

Now to a few economic updates from China, where the country's three largest state-owned airlines are feeling the pinch as the result of a weak domestic market and high fuel costs. Aircraft fuel for Air China, China Southern, and China Eastern airlines rose between 35 and 38 percent over the first half of 2026 compared to last year. Meanwhile, competition from high-speed rail has weighed on China's domestic aviation history in recent years, leading the three carriers to shift more capacity to international routes. While some similar themes were present in EV Maker, BYD's latest earnings, as strong growth in Europe and Latin America helped to overcome soft domestic sales. For the first time, more than half of BYD's revenue now comes from overseas.