The United States and Israel have expanded their airstrikes on Iran, deepening a conflict that President Donald Trump said could last four to five weeks or longer.
The strikes killed Iran’s Supreme Leader, Ayatollah Ali Khamenei, and targeted missile factories, naval bases, and military sites.
Regional retaliation
After its attack on American bases, Iran and its allies hit back across the region. Drones struck the US Embassy in Saudi Arabia, and the American Embassy compound in Kuwait also came under attack. Iranian missiles targeted cities in Israel, while Hezbollah fired rockets from Lebanon, prompting fresh Israeli strikes.
Qatari forces intercepted and destroyed two Iranian bombers.
Three US F-15E Strike Eagles were mistakenly shot down by Kuwaiti air defenses. The US military said all six crew members safely ejected and remain in stable condition.
The US military said three more American personnel have died, pushing the number of US deaths to six. At least 555 Iranians have died, according to the Iranian Red Crescent.
Wider impact
Airlines are feeling the impact of widespread flight cancellations, sending the US Global Jets stock index down 2.6%.
Amazon Web Services said two of its data centers in the United Arab Emirates and one facility in Bahrain went offline after drone strikes damaged the sites on Sunday morning.
The company reported that objects hit its UAE facilities, causing sparks and fire, while a nearby strike in Bahrain disrupted power and connectivity.
Energy markets reacted fast. European natural gas prices jumped 40% after Qatar halted liquefied natural gas production at two major facilities.
Saudi Arabia’s Ras Tanura refinery, which processes more than 500,000 barrels of oil a day, also came under drone attack.
The US has urged Americans to leave several Middle Eastern countries as fighting continues.
The US embassy issued a “shelter in place” alert for Americans in Riyadh, Jeddah, and Dhahran. It urged citizens to avoid the embassy until further notice.
Meanwhile, defense stocks surged following Operation Epic Fury. Palantir Technologies rose 5.8%, Northrop Grumman gained 6%, and Lockheed Martin climbed 3.4% as investors bet on higher military spending.
Oil prices surged on concerns that the Middle East turmoil could disrupt crude flows through the Strait of Hormuz, while gold climbed about 2% as investors moved into safe‑haven assets.