People gather to mourn the death of Iran’s Supreme Leader Ayatollah Ali Khamenei, killed in joint US-Israeli strikes, in a square in Tehran on March 1, 2026.
Atta Kenare | afp | fake images
What you need to know today
US President Donald Trump saying On Sunday he will take “revenge” the deaths of three U.S. service members, in a pre-recorded Truth Social post Sunday afternoon. He added that combat operations in Iran that began on Saturday will continue. Earlier Sunday, U.S. Central Command said three U.S. service members were killed, the first in the conflict.
Meanwhile, Iran can “strike harder” after joint U.S.-Israeli strikes on Iran killed Supreme Leader Ayatollah Ali Khamenei, said David Silbey, a professor of military history at Cornell University. Retaliatory attacks could include missile strikes against Israeli and US military bases and vessels in the Persian Gulf, as well as possible terrorist operations throughout the Middle East, Europe and the United States.
A prolonged closure of the Strait of Hormuza critical transit route for global crude oil that will move about 13 million barrels a day by 2025, could trigger a 1970s-style energy crisis. If Iran closes the Strait, it could “push oil prices into triple digits, while LNG prices return to record highs in 2022,” said Saul Kavonic, head of energy research at MST Marquee.
US crude oil prices rose more than 7% on Sunday night in the United States amid fears of a major supply disruption. “Oil tankers are starting to build in the Strait of Hormuz, but it doesn’t look like anything is happening at the moment; oil tankers are definitely scared,” said Matt Smith, an oil analyst at energy consultancy Kpler.
united states futures sank in overnight trading, adding to a list of growing concerns for investors. It comes amid renewed concerns about the impact of the rapid adoption of AI on software companies. The S&P 500 sold off on Friday and ended in the red in February.
Airlines canceled hundreds of flights in the Middle East. while others were diverted mid-flight amid the closure of airspace in a large area of the region for security reasons. Air India said it would suspend all flights to the Middle East on Saturday, as well as flights between India and Europe and the United States scheduled for Sunday.
And finally…
How the attack on Iran could affect the oil market and the world economy
The joint US-Israeli attack on OPEC member Iran threatens a major disruption to oil supplies in the Middle East. The Islamic Republic shares a coastline with the Strait of Hormuz, the world’s most important waterway for the global oil trade.
“A prolonged closure of the Strait of Hormuz is a guaranteed global recession,” McNally said.
“What you would see is hoarding, especially by Asian countries that were big importers of oil and gas when they realized Hormuz is closed,” McNally added. “You would see the mother of all bidding wars.”
