People protest against U.S. and Israeli attacks on Iran, ICE immigration raids and in support of the Palestinians during a demonstration in front of the Westwood federal building in the Westwood neighborhood of Los Angeles on June 22, 2025. Iran threatened U.S. bases in the Middle East on Sunday after massive airstrikes that Washington said had destroyed Tehran’s nuclear program, although some officials warned that the extent of the damage was unclear. International concern focused on fears that the unprecedented US strikes would deepen the conflict in the volatile region after Israel launched a bombing campaign against Iran earlier this month. (Photo by Bing Guan/AFP) (Photo by BING GUAN/AFP via Getty Images)
Bing Guan | afp | fake images
The US-Israel conflict with Iran extends into its third day and each side is redoubling efforts for tougher responses in the coming days, deepening fears of a broader war that could shake the global economy.
where things are
Washington and Israel launched massive strikes against Iran on Saturday, killing the Islamic State’s supreme leader, Ayatollah Ali Khamenei, prompting retaliatory strikes from Tehran.
Tehran has counterattacked with missiles and drones against Israel and Gulf countries that host US military bases, including the United Arab Emirates, Qatar, Kuwait and Saudi Arabia.
Civilian infrastructure was also affected by Iran’s retaliatory strikes, including Dubai’s luxury Fairmont The Palm hotel and Dubai International Airport.
The death of Khamenei, who ruled Iran for more than three decades and held supreme power, has raised the question of who will rule Iran next, as he had not publicly named a successor. A council consisting of Iranian President Masoud Pezeshkian, the head of the judiciary and a member of the Guardian Council, temporarily assumed leadership roles on Sunday.
According to Iranian state media, more than 200 people in Iran were killed during the attacks.
Three U.S. service members were killed and five others were seriously wounded, the U.S. military said Sunday.
Market reaction so far
Crude oil prices rose on Monday morning as traders analyzed the risks of a major oil supply disruption.
U.S. crude oil rose more than 8%, or $5.55, to $72.57 a barrel, while global benchmark Brent jumped about 9%, or $6.54, to $79.41.
Precious metals gold and silver rose around 2% as investors flocked to safe-haven assets amid global risk-off sentiment.
Risk assets are retreating. Dow Jones Industrial Average futures fell 521 points, or 1%. S&P 500 futures lost 1% and Nasdaq 100 futures fell a little more than 1%.
Japan’s Nikkei 225 fell 1.2%, while the Topix fell 1.34%. Hong Kong’s Hang Seng Index opened down 1.15%, while mainland China’s CSI 300 was down 0.25%. Australia’s S&P/ASX 200 fell 0.48%.
De-escalation or spiral of tensions?
US President Donald Trump warned there could be more American casualties as the operations unfold. Trump told the Daily Mail newspaper on Sunday that the conflict with Iran could continue for the next four weeks.
“It’s always been a four-week process. We estimate it would be about four weeks. It’s always been a four-week process, so no matter how strong it is, it’s a big country, it will take four weeks or less,” the British newspaper quoted Trump as saying.
Separately, in an interview with The Atlantic magazine, Trump said that Iran’s new leadership wanted to resume negotiations and that he had agreed to talk to them.
“They want to talk, and I’ve agreed to talk, so I’m going to talk to them. They should have done it sooner. They should have given what was very practical and easy to do sooner. They waited too long,” Trump said, without specifying when the talks would take place.
The US attacks have sparked debate over their legal basis, since only Congress has the right to declare war under the Constitution.
“There is no plausible legal justification for the US attack on Iran,” said Brian Finucane, senior adviser at the International Crisis Group, a Brussels-based think tank.
Congress has not authorized any military action and the president is not acting to repel any sudden attack on the United States, he said.
“Even by the standards of unilateral executive military action of recent decades, President Trump’s unauthorized attack on Iran is distinguished by its scale and likely repercussions, including for US forces in the region,” Finucane added.
US lawmakers have also expressed concern about a potentially protracted and costly war in the Middle East.
Sen. Tom Cotton, Republican chairman of the Arkansas Senate Intelligence Committee, said on CBS News’ “Face the Nation” that “there is no simple answer to what comes next.”
“It’s no secret that this administration has no plan for the chaos unfolding right now in the Middle East,” said Sen. Chris Murphy, D-Conn.
Global reactions
The attacks on Iran and Tehran’s retaliation have led world leaders to assess the consequences: Western leaders largely backed Trump, while China and Russia targeted the United States and Israel for their military operation.
Porcelain: In a phone call with his Russian counterpart, Chinese Foreign Minister Wang Yi said it was “unacceptable for the United States and Israel to launch attacks against Iran…let alone brazenly assassinate a leader of a sovereign country and instigate regime change.” The Chinese Foreign Ministry has called for an “immediate ceasefire.”
Russia: President Vladimir Putin reportedly expressed his condolences over Khamanei’s death, calling the act “a murder committed in cynical violation of all norms of human morality and international law.” In a statement on Saturday, the Russian Foreign Ministry called for “an immediate return to the political and diplomatic track.”
Gulf States: Countries aligned with the United States have shown a show of defiance, pledging in a joint statement to “remain united in defense of our citizens, sovereignty and territory, and reaffirm our right to self-defense in the face of these attacks.”
Great Britain: The UK government said it had not been involved in the attacks and “did not want to see a further escalation into a wider regional conflict”. But London has agreed to let the US. wear its military bases for “defensive” strikes against Iranian missile sites, according to Prime Minister Keir Starmer.
Germany: Chancellor Friedrich Merz “closely followed the development and is in close coordination with European partners,” a government spokesperson said. Merz is scheduled to meet with Trump in Washington later this week.
France: President Emmanuel Macron called for an end to the attacks and called for a meeting of the Security Council. He also wrote that Iranian leaders “must understand that they now have no choice but to engage in good faith negotiations” over their nuclear program.
Australia: Prime Minister Anthony Albanese stressed that Iran has been a “destabilizing force” for decades. “We support the United States acting to prevent Iran from obtaining a nuclear weapon and to prevent Iran from continuing to threaten international peace and security,” he said in a statement.
Canada: Prime Minister Mark Carney also backed the US action. “Canada supports the United States acting to prevent Iran from obtaining a nuclear weapon and to prevent its regime from further threatening international peace and security,” Carney said in a statement.
