US submarine sinks Iranian navy ship as war expands

UNDATED-AP- A widening U.S.-Israeli war with Iran has seen major strikes, missile fire across the region, and fresh fears for global energy and markets. On Wednesday (March 4, 2026), Defense Secretary Pete Hegseth says a U.S. submarine sinks an Iranian warship with a torpedo in international waters near Sri Lanka. Turkey says NATO defenses intercept an Iranian ballistic missile before it entered Turkish airspace. Officials report more than 1,000 dead in Iran, over 50 in Lebanon, and about a dozen in Israel. Oil prices have jumped as shipping traffic through the key Strait of Hormuz has dropped sharply. U.S. stocks appeared steadier at Wednesday’s opening.