Oil climbs as stocks slide on fresh Trump warning over Iran
Oil prices rose further on Tuesday as tensions between the United States and Iran fuelled fears of renewed military clashes, following a weekend flare-up and President Donald Trump’s warning of a ‘hard’ response. — AFP file pic
Summary
- Oil prices rose as fears of US-Iran conflict increased after military exchanges, causing concerns over inflation and interest rate hikes.
- US and Iran exchanged military strikes, raising fears of further hostilities, with Trump promising a strong response.
- Asian stock markets mainly fell amid concerns over inflation and interest rate changes, with key economic data expected before the Federal Reserve's meeting.
First Published: Tuesday, 01 Sep 2026 10:59 AM MYT
HONG KONG, Sept 1 — Oil prices extended gains Tuesday amid fears of a fresh bout of military exchanges between the United States and Iran following a flare-up at the weekend and Donald Trump’s warning that he will hit the country “hard”.
The latest bout of strikes between the foes has further stoked worries about inflation that has put pressure on central banks to hike interest rates, which has in turn jolted equity markets.
After six months of war, the conflict remains at an impasse, with Tehran keeping the strategic Strait of Hormuz closed and Washington continuing a counter-blockade of Iranian ports.
The United States carried out strikes on an Iranian island in the waterway on Sunday, with Tehran quickly retaliating by attacking US military targets in the Middle East.
The exchange raised fears of a return to major hostilities, with the US president vowing to respond.
“We’re going to hit them hard,” Trump said, according to a Fox News reporter who spoke to him briefly. “There will be a response.”
US officials said it hit rocket launchers on the island of Larak to prevent Tehran planting mines in the strait, while Iran targeted US forces in Jordan and the United Arab Emirates.
The exchange of fire came after weeks of relative calm, with the Trump administration recently pivoting to “economic warfare”.
US Treasury Secretary Scott Bessent said: “We are going to continue exerting pressure, and we’ve had very good discussions here already.”
He told reporters at a G20 meeting in North Carolina that a turning point in the pressure campaign could come “within weeks or months”.
Both main crude contracts rose Tuesday, extending the previous day’s jump of more than two percent.
“The calibrated nature of the initial actions suggests neither side is actively seeking a return to sustained conflict, but stalled talks and the strategic importance of keeping the Strait open leave the situation vulnerable to further escalation,” said National Australia Bank’s Rodrigo Catril.
Trump will be meeting oil refining executives on Tuesday in a bid to tame soaring US domestic gas prices that have been a political headache for his Republican Party heading into November’s midterm elections.
Stocks mostly fell, with traders now awaiting the release of key data this month ahead of the Federal Reserve’s policy meeting on September 16.
Tokyo, Hong Kong, Seoul, Shanghai, Sydney, Singapore and Wellington were all down, though Taipei, Manila and Jakarta rose.
The jobs and consumer price index reports could play a major role in whether the bank hikes rates, with bets on an increase surging after boss Kevin Warsh’s hawkish speech on Friday.
Expectations for elevated inflation and rising borrowing costs pushed the yield on 10-year US Treasuries to their highest level since January 2025.
That has bled into Asia, with 10-year Japanese government bond yields touching a 30-year high on Monday.
In company news, fast-fashion giant Shein fell more than nine percent on its long-awaited Hong Kong trading debut, having raised US$1.7 billion (RM6.9 billion) in a high-profile initial public offering.
And shares in MediaTek soared nearly 10 per cent after US tech giant Nvidia announced it has injected US$3.5 billion into the Taiwanese chipmaker. — AFP
US Army secretary Driscoll resigns amid reported tensions with Hegseth
US Secretary of the Army Dan Driscoll testifies on budget requests during a Senate Committee on Armed Services hearing on Capitol Hill in Washington, DC, May 12, 2026. Driscoll has submitted his resignation, the White House confirmed Monday, following reports of tensions with Defense Secretary Pete Hegseth. — AFP pic
Summary
- US Army Secretary Dan Driscoll has resigned due to reported tensions with Defense Secretary Pete Hegseth, confirmed by the White House.
- Driscoll's tenure was marked by advancements in military readiness and negotiations with Russia and Ukraine.
- His resignation could leave the Army with a leadership gap amidst the ongoing Iran conflict.
First Published: Tuesday, 01 Sep 2026 9:42 AM MYT
WASHINGTON, Sept 1 — US Army Secretary Dan Driscoll has submitted his resignation, the White House confirmed Monday, following reports of tensions with Defense Secretary Pete Hegseth.
Asked about a Wall Street Journal report that Driscoll had resigned, White House Principal Deputy Press Secretary Anna Kelly did not deny it.
“Driscoll has been highly effective in advancing President Trump’s agenda to Make America Strong Again at the Department of the Army,” Kelly said.
She cited his “outstanding leadership” during US military operations, “restoring an emphasis on readiness and lethality, assisting with negotiations between Russia and Ukraine, and more.”
She added: “The United States Army is more powerful than ever thanks to his work alongside the Commander-in-Chief and Secretary of War.”
If accepted, Driscoll’s resignation would mark the latest departure of a senior military leader under President Donald Trump administration.
A former law school classmate of Vice President JD Vance, Driscoll had reportedly benefited from their friendship within the administration, but clashed with Hegseth.
An Army veteran who served in Iraq, Driscoll ran unsuccessfully for Congress in 2020 and later advised Trump’s 2024 reelection campaign.
With the Iran war entering its seventh month, the resignation could effectively leaves the Army without permanent civilian or uniformed leadership. Hegseth fired Army Chief of Staff Gen. Randy George in April and has yet to nominate a permanent successor. — AFP
NRD: MyKad printing services disrupted until Sept 7 for shift to new-gen
Visitors walk outside the National Registration Department in Putrajaya on September 23, 2025. — Picture by Raymond Manuel
Summary
- The National Registration Department (NRD) in Kuala Lumpur is transitioning to a new-generation MyKad, leading to temporary disruptions in printing services until September 7.
- The department advises the public to postpone non-urgent MyKad transactions, including replacements, renewals, and first-time applications for children turning 12.
- The NRD expressed gratitude for public cooperation and encouraged staying informed through official channels, while apologizing for any inconvenience caused.
First Published: Tuesday, 01 Sep 2026 10:55 AM MYT
KUALA LUMPUR, Sept 1 — The National Registration Department (NRD) is transitioning from the existing MyKad structure to the new-generation MyKad, causing temporary disruptions to its printing services.
In a statement today, the NRD announced that the printing disruption is expected to last from today through Sept 7.
In light of this, the department advises members of the public who do not urgently need to replace or renew their MyKad to postpone such transactions during this period.
Parents or guardians of first-time applicants, particularly children reaching the age of 12, are also advised to hold off on applying for now, so that their children can obtain the new-generation MyKad when it becomes available.
JPN also expressed its appreciation for the public’s patience and cooperation throughout this transitional period.
“The department apologises for any inconvenience caused in connection with this matter,” the statement read.
Members of the public are urged to stay updated on further developments regarding the new-generation MyKad by following JPN’s official channels. — Bernama
