U.S. News Today: Congress Returns, Oil Prices Jump as Iran Fighting Resumes, Gulf Coast Watches Developing Storm
Monday, August 31, 2026
The final day of August opens with Washington lawmakers returning to work, renewed military action between the United States and Iran rattling energy markets, a developing tropical threat near Texas and Louisiana, and growing attention on the economy ahead of a major U.S. jobs report.
Here are some of the top stories shaping the United States today.
U.S.-Iran Fighting Resumes, Sending Oil Prices Higher
Renewed fighting between the United States and Iran is once again creating economic and geopolitical uncertainty.
U.S. forces struck Iranian rocket launchers on Larak Island near the Strait of Hormuz over the weekend, marking the first significant U.S. military action against Iran in roughly a month. Iran and the United States subsequently resumed attacks as tensions surrounding the months-long conflict intensified.
Energy markets reacted quickly.
Brent crude climbed above $90 per barrel, while U.S. crude prices also jumped as investors weighed the possibility of additional disruption around the Strait of Hormuz, one of the world's most important energy shipping routes. AP reported that gasoline prices in the United States averaged above $4 per gallon during August.
President Donald Trump is also expected to meet with U.S. refining executives as his administration pushes the industry on gasoline prices and refinery capacity. Chevron, Marathon Petroleum and Valero are among companies expected to participate.
The administration is separately looking to Venezuela as part of its energy strategy. Trump announced plans to use Venezuelan oil to help replenish the Strategic Petroleum Reserve, which stood at roughly 290 million barrels as of August 21, near its lowest level in more than four decades. How quickly Venezuelan production could meaningfully increase remains uncertain.
House Returns With Government Funding at the Top of the Agenda
Members of the House of Representatives are returning to Washington after a five-week recess, and avoiding another federal government shutdown is at the top of the agenda.
Lawmakers are expected to consider a revised short-term spending bill that would keep the government funded into December. Current federal funding expires September 30.
The Senate altered an earlier House proposal to win broader support, creating another round of negotiations before legislation can reach President Trump's desk.
The calendar is particularly important because the November 3 midterm elections are approaching quickly. Neither party wants a shutdown dominating the political landscape just weeks before voters head to the polls.
Congress could also take up legislation targeting Russia's economy and countries purchasing large amounts of Russian oil and gas.
Texas and Louisiana Watching Developing Gulf System
Residents along portions of the Texas and Louisiana Gulf Coast are being told to keep an eye on a developing weather system.
The National Hurricane Center said Monday morning that an area of low pressure located a little more than 100 miles south of Louisiana was becoming better organized.
Forecasters said a short-lived tropical depression or tropical storm is likely to form before the system reaches the Upper Texas or southwestern Louisiana coast Tuesday.
Heavy rainfall is possible regardless of whether the system receives a name, and tropical storm watches or warnings could be issued.
The development is especially worth monitoring across the Houston-area Gulf Coast, southeastern Texas and southwestern Louisiana because of the region's large population, ports, refineries and energy infrastructure.
Wall Street Watches Oil, Inflation and the Federal Reserve
The renewed Middle East fighting isn't staying overseas. Its economic consequences are landing directly on Wall Street.
U.S. stock futures moved lower Monday as oil prices increased and investors reconsidered the outlook for inflation and interest rates.
Federal Reserve Chair Kevin Warsh has recently emphasized that inflation must continue moving toward the central bank's 2% target. Financial markets have consequently increased expectations that another interest-rate hike could be considered at the Fed's September meeting.
The next major economic checkpoint arrives Friday, September 4, when the August U.S. employment report is scheduled for release.
That report could offer important clues about whether the labor market is weakening enough to offset concerns about higher energy prices and persistent inflation.
Treasury Secretary Scott Bessent, meanwhile, is pushing back against concerns about stress in the U.S. government debt market, arguing that Treasury markets remain resilient despite higher yields and volatility.
House Opens Investigation Into Controversial DEA Fentanyl Tactic
A new congressional investigation is focusing on allegations involving the Drug Enforcement Administration and fentanyl investigations.
House Republicans are examining reports that DEA agents were permitted in some cases to allow fentanyl shipments to continue toward their destinations rather than immediately seizing them, with the goal of developing broader cases against trafficking networks.
Whistleblowers allege the tactic was used in New Mexico between 2023 and 2025.
The House Oversight Committee is seeking documents as questions grow over whether the strategy potentially allowed dangerous drugs to reach communities unnecessarily.
The DEA has launched an internal review, while Administrator Terry Cole has defended the agency's broader enforcement record and said the review is welcome.
Immigration Policies Continue Facing Legal Challenges
Immigration remains another major national issue heading into the fall.
The Trump administration recently paused immigrant visa appointments at U.S. embassies and consulates around the world while conducting additional training for consular officers. The State Department says the initiative is designed to strengthen screening procedures.
At the same time, courts continue to push back on portions of the administration's immigration strategy.
A federal judge in California ruled that provisions used to cancel visas and pursue deportation proceedings against noncitizen students because of pro-Palestinian political advocacy were unconstitutional when applied to protected speech.
Separately, another federal judge recently struck down a policy suspending immigrant visa processing for applicants from 75 countries, ruling that the State Department had exceeded its statutory authority.
Those rulings ensure immigration policy will remain both a political and legal battleground heading toward November.
What to Watch Next
September begins with several storylines capable of moving quickly.
The developing Gulf system could become a tropical storm before reaching Texas or Louisiana. Congress must move toward resolving federal funding before September 30. Oil and gasoline prices remain vulnerable to developments in the U.S.-Iran conflict. And Friday's employment report could reshape expectations surrounding the Federal Reserve.
With the midterm elections now just over two months away, nearly every major economic, foreign-policy and domestic-policy debate will increasingly be viewed through an election-year lens.
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Sources and clickable full links
- Associated Press: House lawmakers return with government funding atop the agenda
Read the full AP report - Reuters: U.S. and Iran resume attacks
Read the full Reuters report - Associated Press: Oil prices surge following U.S. strikes on Iranian sites
Read the full AP report - Reuters: Trump to meet U.S. oil refining executives
Read the full Reuters report - Reuters: Venezuela oil and the Strategic Petroleum Reserve
Read the full Reuters report - National Hurricane Center: Northern Gulf tropical weather outlook
View the latest NHC outlook - Reuters: Wall Street, oil prices and Federal Reserve expectations
Read the full Reuters markets report - Reuters: Treasury Secretary Scott Bessent on U.S. debt markets
Read the full Reuters report - Associated Press: House investigation into DEA fentanyl tactics
Read the full AP investigation report - Reuters: Worldwide pause on immigrant visa appointments
Read the full Reuters report - Reuters: Federal ruling involving deportation and protected political speech
Read the full Reuters report