The Middle East is again on edge after the first exchange of fire between the U.S. and Iran in over a month triggered missile launches and a spike in global oil prices. President Trump responded by declaring Iran a "failed nation" and shared an AI-generated video of an Iranian energy hub under attack. Liz Landers reports.

For perspective on the latest developments in the war with Iran, Amna Nawaz spoke with retired U.S. Navy Rear Adm. Mark Montgomery and Michelle Wiese Bockmann, an analyst at Windward, a London-based maritime intelligence company.

The vice president spoke to reporters before he flew to Michigan on Monday about the AI video that President Donald Trump posted on social media over the weekend that featured a stylized imaginary attack on Iran's Kharg Island, which is key to its oil exports and Trump has repeatedly threatened.

Treasury Secretary Scott Bessent is meeting with finance ministers of the world's largest economies this week at a time when the United States has disrupted the international order with aggressive tariffs on major allies and an unpopular war on Iran.

The incident comes after U.S. forces on Sunday struck Iranian rocket launchers on an Iranian island, breaking a lull in fighting in the six-month war.

The fighting comes just days after the Trump administration said it would turn its focus to increasing economic pressure — rather than military action — to try to end its war with Iran.

Iran's new leaders evince little faith in any agreement with Trump — after coming under attack twice while holding talks — and they may be bracing for another assault once the U.S. replenishes its supplies of interceptors.

Under a new rule proposed Friday by the Treasury Department, the Emirati branches of Banque Misr, Egypt's second-largest bank, would be severed from access to the U.S. financial system.

The U.S. military is experiencing a "beyond critical" shortage of advanced missile interceptors in Europe largely driven by President Donald Trump's war with Iran, a U.S. defense official in Europe and a NATO official told The Associated Press, raising concerns about vulnerabilities in NATO countries to a potential Russian attack.

There still is no off-ramp in sight despite President Donald Trump's repeated assertions that the war has been won or a deal to resolve it was nearly complete.

"The U.S. Secret Service is aware of the video and investigates anything that can be perceived as a threat toward our protectees," Secret Service spokesman Nate Herring said in a statement.

The U.S. launched what the Trump administration calls "Operation Economic Outcast" against Iran. It includes threats to increase sanctions on Iran's trading partners. The pressure comes as the administration indicates it is trying to avoid returning to war, but cannot overcome Iran's stranglehold over the Strait of Hormuz. Nick Schifrin discussed more with Miad Maleki.

Iran's currency hit a record low Monday as Washington prepared to announce new sanctions it said would add further pressure on an economy already battered by previous sanctions and a U.S. naval blockade.

Iran's currency hit a record low Monday as Washington prepared to announce new sanctions it said would add further pressure on an economy already battered by previous sanctions and a U.S. naval blockade.

The new head of Iran's top security body warned Sunday that Tehran will see any country's support for new U.S. economic measures against the Islamic Republic as an "act of war," while Iran's president defended a memorandum of understanding with the U.S. as the best way out of the stalled conflict.

President Donald Trump said he has presided over "the essential denuclearization of Iran." But Iran likely still has materials and machinery that can be used to make nuclear weapons, undercutting Trump's claim.