US-Israeli Strikes on Iran Escalate Tensions and Disrupt Global Markets

Escalating tensions in the Middle East, triggered by US-Israeli strikes on Iran, are sending ripples through global markets and raising concerns about wider regional conflict. The strikes, initiated in response to the killing of Iran’s supreme leader Ali Khamenei, have led to retaliatory attacks from Iran targeting Israel, the United Arab Emirates, and US military bases. The situation remains highly volatile, with US President Donald Trump signaling further action and a potential for prolonged instability.

Timeline of Recent Events

The current crisis began with the killing of Supreme Leader Ali Khamenei in US-Israeli strikes on February 28, 2026. CNN reports that this action was considered a crossing of a “very dangerous red line” by Iranian officials. Iran responded with a series of attacks, including ballistic missile and drone strikes against Israel, the UAE, and US military installations.

The UAE experienced a significant barrage of attacks, with 165 ballistic missiles launched by Iran. According to the UAE Ministry of Defense, 152 missiles were intercepted by air defenses, while 13 fell into the sea. Two cruise missiles were destroyed, and 541 drones were launched, of which 506 were intercepted, with 35 impacting the country. These attacks resulted in the deaths of three nationals – one each from Pakistan, Nepal, and Bangladesh – and injuries to at least 58 others.

Further escalating the conflict, Israeli strikes have targeted areas “in the heart of Tehran.” Meanwhile, Iranian missiles have struck the Israeli city of Beit Shemesh, resulting in at least nine fatalities, marking the deadliest attack on Israel since the conflict began. BBC News

Impact on Global Markets

The escalating conflict is already impacting global markets, particularly in the energy and aviation sectors.

• Oil Prices: Global oil prices have risen following attacks on ships near the Strait of Hormuz, a critical waterway for oil transportation.
• Airline Industry: Airline share prices in the Asia Pacific region are declining as Iranian strikes disrupt air travel and airport operations.
• Regional Disruption: The conflict is causing widespread business disruption across the Gulf region, impacting trade and economic activity.

Geopolitical Implications

The US-Israeli strikes on Iran and subsequent retaliatory actions have broader geopolitical implications.

• Iran-Israel Conflict: The events represent a significant escalation in the long-standing Iran-Israel conflict, which includes proxy wars and direct confrontations.
• Regional Instability: The conflict threatens to destabilize the wider Middle East region, potentially drawing in other actors.
• US-Iran Relations: The strikes have further strained already tense relations between the US and Iran.

Looking Ahead

The situation remains fluid and unpredictable. US President Donald Trump has indicated that strikes may continue throughout the week. The extent to which prices remain high will depend on the actions taken by the United States, Israel, and Iran in the coming days and weeks. US Secretary of State Marco Rubio is scheduled to brief House and Senate leaders on Iran on Tuesday, March 3, 2026.