Top Overnight News Iran and the United States traded attacks for the first time in over a month overnight into Monday. Iran fired missiles toward US military targets in Jordan and the United Arab Emirates in retaliation for a strike on Iranian rocket launchers that the US said were trying to launch sea mines into the Strait of Hormuz. The exchange of strikes came just days after President Donald Trump declared the Strait of Hormuz free from mines and is a break with Washington’s recent shift in focus to maximizing economic pressure on Iran rather than military actions. CNN Iranian leaders are acknowledging the economic toll of war with the U.S., with the supreme leader urging the government to address the hardship and the president saying foreign trade has shrunk by a third due to the American sanctions and blockade. Yet Tehran signaled no retreat on Saturday, ‌vowing to withstand U.S. pressure, pursue diplomacy and maintain what it said was control over the Strait of Hormuz. Reuters President Donal Trump said Friday night the United States has reached an oil agreement with Venezuela, a move he said will “more than double” American oil reserves, increase oil supply and lower gas prices. The deal is said to “secure majority control” of more than 65B barrels worth of oil reserves in Venezuela, or ~20% of the country’s total. CNN / FT U.S. Treasury Secretary Scott Bessent said on Sunday he will encourage G20 members to re-examine terms of ‌trade with China to shrink global imbalances and press Beijing to rebalance its economy away from exports and toward domestic consumption. Bessent said in an interview ahead of a G20 finance leaders meeting that the current flood of exports from China was unsustainable, even though the U.S. direct trade position with China was "rapidly improving." Reuters China’s official manufacturing PMI remained in contraction in August, suggesting that momentum has yet to rebound after July’s sharp downturn. BBG SK Hynix is exploring a joint venture to make memory chips in Japan to meet surging AI demand, Chairman Chey Tae-won said. BBG South Korea’s industrial production for Jul came in ahead of expectations at +0.2% M/M (vs. the Street -0.5%). BBG Russia’s Defense Ministry said it is planning “massive strikes” on Ukraine’s energy infrastructure, days after launching a devastating attack on a warehouse near Kyiv, amplifying fears of another winter assault. CNBC September is historically the worst month for Wall St, and traders are preparing for volatility during the coming weeks, with the FOMC meeting on 9/16 potentially a major catalyst. Barron’s(zerohedge)