03/02/26 11:21Trump says the ‘big wave’ in war with Iran is yet to come
The “big wave” is yet to come in the war with Iran, Mr. Trump told CNN.
“We haven’t even started hitting them hard. The big wave hasn’t even happened. The big one is coming soon,” Mr. Trump said, telling CNN it was unclear who was now leading Iran.
“We don’t know who the leadership is. We don’t know who they’ll pick,” he said.
– Reuters
03/02/26 11:14Putin offers to use links to Iran to help restore Middle East calmOpen this photo in gallery:
Russian President Vladimir Putin and UAE’s President Sheikh Mohammed bin Zayed Al Nahyan attend a welcoming ceremony at the Kremlin in Moscow on Jan. 29.Maxim Shipenkov/Reuters
Russian President Vladimir Putin spoke by phone to leaders of three Arab Gulf states, offering to use Moscow’s ties to Iran to try to help restore calm to the Middle East.
In a series of calls with the leaders of the UAE, Bahrain and Qatar, Mr. Putin criticized the U.S.-Israeli strikes on Iran, which the Kremlin described as “unprovoked aggression”.
According to the Kremlin readout of Mr. Putin’s call with UAE President Mohammed bin Zayed Al Nahyan, the Russian leader offered to act as a conduit by conveying the UAE’s complaints about being attacked to Tehran.
During the call, “both sides emphasized the need for an immediate ceasefire and a return to the political and diplomatic process,” the Kremlin added.
In Mr. Putin’s call with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, the Kremlin said both leaders had spoken of their concern about the conflict widening and the risk of third countries becoming involved. Mr. Putin told Bahrain’s King Hamad bin Isa Al Khalifa that Russia was ready to do all it could to stabilize the situation in the region.
– Reuters
03/02/26 11:04Starmer says Iran stepping up ‘reckless’ strikes
British Prime Minister Keir Starmer said that the killing of Iran’s Supreme Leader Ali Khamenei has led Iran to strike military and economic targets in a more “reckless” manner in the region.
The death of Ayatollah Khamenei “will not stop Iran from launching these strikes,” Mr. Starmer told parliament. “In fact, their approach is becoming even more reckless and more dangerous to civilians.”
– Reuters
03/02/26 10:50UAE airports to open in limited capacity Open this photo in gallery:
FlyDubai planes are parked on the tarmac at Dubai International Airport on March 2.GIUSEPPE CACACE/AFP/Getty Images
In Dubai, Emirates, flydubai and Etihad Airways will resume a limited number of flights on Monday, mainly to help repatriate stranded passengers.
The UAE civil aviation authority will begin operating “special flights” across the country’s airports, state news agency WAM reported, to help some of the tens of thousands of passengers stranded in the region leave.
Dubai Airports said a small number of flights will be permitted from Dubai International and Al Maktoum International. Dubai International, which handled nearly 100 million passengers last year, sustained minor damage on Sunday after it was hit along with other hubs by Iranian retaliatory attacks that have extended beyond U.S. bases and interests.
In a statement, Abu Dhabi-based Etihad said, “Some repositioning, cargo and repatriation flights may operate in coordination with UAE authorities and subject to strict operational and safety approvals,” adding that all scheduled commercial services to and from Abu Dhabi remained cancelled.
The airline’s website showed several flights had departed from Abu Dhabi’s Zayed International Airport on Monday for destinations including London and Paris, with more scheduled. Etihad did not specify which flights were being used for repatriations.
Earlier, the airline said all flights to and from Abu Dhabi were suspended until 10 a.m. GMT on Tuesday.
– Reuters
03/02/26 10:17Canadians in Middle East should prepare contingency plans: Global Affairs
– Ian Bailey
Global Affairs Canada is increasing staff to help Canadians caught up in the Middle East conflict but also urging them to fend for themselves.
In a statement issued Monday morning, the department said its ability to provide consular services to Canadians during an active conflict is limited.
The priority is given to providing such essential services as processing travel documents.
“If you are in an affected country, prepare contingency plans that don’t rely on the Government of Canada’s assistance for departure,” said the statement.
The statement said the department is not aware of any Canadians who have been killed or injured owing to hostilities.
It advises against any travel to Bahrain, Iran, Iraq, Israel, Kuwait, Lebanon, Qatar and the United Arab Emirates as well as non-essential travel to Jordan, Oman and Saudi Arabia.
03/02/26 10:13Israel’s main airport to open in ‘extremely limited format’
Israel’s main international gateway, Ben Gurion Airport near Tel Aviv, said on its WhatsApp channel that it expects to reopen as early as Monday evening in an “extremely limited format” after the conflict with Iran shut Israeli airspace.
The airport said that starting on Tuesday, “flight operations will gradually expand depending on the security situation,” although only Israeli carriers are expected to resume flights.
Flag carrier El Al Israel Airlines said on Monday it was seeking approval to operate charter flights from Europe to destinations bordering Israel to bring back passengers stuck abroad.
The airline is considering flights to Taba in Egypt, which borders the Israeli Red Sea resort city of Eilat, and Aqaba in Jordan, which is also adjacent to Eilat.
Israeli airlines have so far cancelled flights through Tuesday. El Al said it has halted the sale of tickets until March 21 to allow its customers whose flights were cancelled to be accommodated as soon as the airspace opens.
El Al said it was planning rescue flights from more than 20 cities, including New York, Miami, Los Angeles, Bangkok, London, Paris and other cities in Europe to bring back an estimated 40,000 of its passengers stranded abroad.
Another 34,000 tourists are also currently in Israel.
– Reuters
03/02/26 10:06Amazon’s AWS reports outage after UAE data center struck by ‘objects’
Amazon’s cloud-computing facilities in the Middle East faced power and connectivity issues on Monday after unidentified “objects” struck its data centre in the United Arab Emirates.
The objects had triggered a fire on Sunday that forced authorities to eventually cut power to two clusters of Amazon data centres in the UAE, with restoration expected to take at least a day, according to Amazon Web Services’ status page.
Localized power issues impacted AWS services in both the UAE and neighbouring Bahrain, according to the page. Financial institutions that use AWS services have been affected by the outage, said one person with direct knowledge of the situation, who was granted anonymity because of the sensitivity of the matter.
While Amazon did not identify the objects, the incident happened on the same day Iran fired a barrage of drones and missiles at Gulf States in retaliation for U.S. and Israeli strikes that killed Supreme Leader Ayatollah Ali Khamenei.
A strike, if confirmed, on the AWS facility in the UAE will mark the first time a major U.S. tech company’s data centre has been knocked offline by military action. It could also raise questions around Big Tech’s pace of expansion in the region.
– Reuters
03/02/26 09:53U.S. Defense Secretary Hegseth insists Iran conflict is ‘not endless’Open this photo in gallery:
Defense Secretary Pete Hegseth speaks during a press briefing at the Pentagon, March 2, 2026, in Washington.Mark Schiefelbein/The Associated Press
U.S. Defense Secretary Pete Hegseth on Monday spoke to widening concerns that the U.S.-Israeli strikes in Iran could spiral into a protracted regional conflict by declaring, “This is not Iraq. This is not endless.”
Mr. Hegseth, along with Air Force Gen. Dan Caine, chairman of the Joint Chiefs of Staff, held the Trump administration’s first news briefing since Saturday’s strikes.
Mr. Hegseth said the operation had a “clear, devastating, decisive mission” to “destroy the missile threat” from Iran, destroy its navy and “no nukes.”
“No stupid rules of engagement, no nation building quagmire, no democracy building exercise, no politically correct wars. We fight to win, and we don’t waste time or lives,” he said.
Asked if there are currently boots on the ground in Iran, Mr. Hegseth said, “No, but we’re not going to go into the exercise of what we will or will not do.”
He said it was “foolishness” to expect U.S. officials to say publicly “here’s exactly how far we’ll go.”
He also suggested the U.S. was not seeking to change the Iranian regime with the killing of Iranian Supreme Leader Ayatollah Ali Khamenei.
“This is not a so-called regime change war, but the regime sure did change and the world is better off for it,” Hegseth said.
– The Associated Press
03/02/26 09:49Lebanon bans Hezbollah military actions after attack on IsraelOpen this photo in gallery:
Smoke rises following Israeli airstrikes on Dahiyeh, a southern suburb of Beirut, Lebanon, March 2, 2026.Hassan Ammar/The Associated Press
Lebanon’s government on Monday banned military activities by Hezbollah after it opened fire on Israel to avenge the killing of Iran’s Supreme Leader, a move likely to fuel tension with the Tehran-backed Lebanese group as it faces a new Israeli offensive.
Israel launched heavy air strikes on the Hezbollah-controlled southern suburbs of Beirut and more widely in Lebanon, in response to the Hezbollah drone and rocket strike, killing 31 people, according to the Lebanese health ministry.
In a statement after a cabinet meeting, Lebanese Prime Minister Nawaf Salam said Hezbollah’s attack showed disregard for “the will of the majority of Lebanese” and that Lebanon rejected being dragged into the regional conflict.
The state, he said, rejected any military actions launched from Lebanon “outside the framework of its legitimate institutions and affirmed that the decision of war and peace is exclusively in its hands.”
– Reuters
03/02/26 09:29Gold climbs as war sparks safe-haven demand
Gold prices rose on Monday after the U.S. and Israel launched major strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei, escalating geopolitical tensions and deepening global economic uncertainty.
Spot gold was up 1.37 per cent at US $5,349.44 an ounce, as of 4:39 a.m. GMT, after hitting its highest point in more than four weeks. Earlier in the session, bullion prices climbed as much as 2 per cent.
U.S. gold futures rose 2.21 per cent to US $5,362.60 per ounce.
“Unlike previous escalations in this conflict, there is fairly strong incentive here for both sides to continue to escalate potentially – and that runs the risk of leading to a pretty chaotic, uncertain and therefore volatile environment for more than just a few days … the dynamic for gold is pretty positive” said Kyle Rodda, senior financial market analyst at Capital.com.
However, the U.S. dollar index rose 0.27 per cent, making gold more expensive for overseas buyers and capping the metal’s gains.
Bullion, a traditional safe-haven asset, has hit successive record highs already this year due to heightened global political and economic uncertainty.
The latest rally builds on a 64 per cent surge in 2025, driven by strong central bank buying, robust inflows into exchange-traded funds and expectations of U.S. monetary policy easing.
– Reuters
03/02/26 09:26Kuwait intercepts drones
Kuwait intercepted hostile drones on Monday, the third consecutive day of Iranian retaliatory strikes on neighbouring Gulf states in response to U.S. and Israeli attacks on the Islamic Republic.
No injuries were reported after Kuwait air defences intercepted the majority of the drones near the capital’s Rumaithiya and Salwa neighbourhoods, the state news agency cited the director-general of the civil defence as saying.
Loud bangs and sirens were heard earlier in Kuwait, according to a Reuters witness.
Tehran said it would target U.S. bases in the region after the U.S. and Israel launched strikes on Iran on Saturday.
It has also hit a range of civilian and commercial areas across Gulf cities, widening the conflict’s impact on key regional aviation and trade hubs.
– Reuters
03/02/26 09:25Etihad and Emirates start limited flights
Long-haul carriers Etihad and Emirates began limited flights Monday after halting them for the ongoing war.
The carriers, based in Abu Dhabi and Dubai, launched flights Monday afternoon. Flight-tracking data showed Etihad flights moving first.
Dubai’s government said it would have a “limited resumption of operations,” telling passengers only to come to the airport if they had been contacted directly.
– The Associated Press
03/02/26 09:21Governments scramble to bring stranded travellers home Open this photo in gallery:
A display board shows canceled flights to Dubai and Doha amid regional airspace closures at Noi Bai International Airport, amid the U.S.-Israel conflict with Iran, in Hanoi, Vietnam on Monday.Thinh Nguyen/Reuters
Global air travel chaos intensified on Monday as the U.S. and Israel continued to bombard Iran, which struck back at targets across the Middle East, leaving airports closed and stranding travellers including those in faraway areas who were scheduled to transit through the region.
Governments were scrambling to help their citizens get home after the conflict erupted on Saturday, throwing travel plans into turmoil.
Tourists, business travellers and religious pilgrims found themselves stuck unexpectedly in hotels, airports and on cruise ships, with no word on when many airports would reopen or when flights to and through the Middle East would resume. Governments told stranded citizens to shelter in place.
Airports in Dubai, Abu Dhabi and Doha, which are important hubs for travel between Europe, Africa and the West to Asia, remained closed after they were all directly hit by Iranian strikes.
Emirates, based in Dubai International Airport, one of the busiest in the world, has suspended its flights until at least 3 p.m. local time Tuesday.
Doha-based Qatar Airways said Monday its flights remain suspended, with its next update planned for Tuesday morning.
– The Associated Press
03/02/26 09:11Britain says it’s not at war after a drone strikes its Akrotiri base in CyprusOpen this photo in gallery:
A U-2 aircraft flies after take off from RAF Akrotiri, a British sovereign base in Cyprus, which was hit by an unmanned drone overnight, causing limited damage, after sirens sounded, in Cyprus on Monday.Yiannis Kourtoglou/Reuters
Britain is not at war, its government said Monday, despite saying it would allow the U.S. to use British bases during its war with Iran and after a Royal Air Force base in Cyprus was struck by an Iranian-made drone on Sunday.
Sirens sounded again at the Cyprus base, RAF Akrotiri, on Monday and British Typhoon and F-35 warplanes were scrambled. Cyprus government spokesman Konstantinos Letymbiotis posted on X that two drones heading toward the British base had been intercepted.
British officials say an attack drone hit the runway at RAF Akrotiri late Sunday. There were no injuries and “minimal” damage, but the strike brought the conflict onto European soil.
Akrotiri is Britain’s main air base for operations in the Middle East and in recent years has been used by British warplanes on missions against the Islamic State group in Syria and Iraq, and to strike Houthi targets in Yemen.
British officials have refused to say whether the U.K. supports the U.S.-Israeli war on Iran. They have said that Iran should not be able to have a nuclear weapon and called for an end to Iranian strikes and a diplomatic solution.
– The Associated Press
03/02/26 08:53Etihad Airways resumes some operations, commercial flights still halted Open this photo in gallery:
The Etihad airlines check-in area remains closed amid the U.S.-Israel conflict with Iran, at Heathrow Airport in Greater London, Britain on Monday.Isabel Infantes/Reuters
Abu Dhabi carrier Etihad Airways resumed some limited flight operations on Monday, the airline told Reuters, as global airlines including Middle East carriers adapt to the disruption caused by the escalating Iranian conflict since Saturday.
The Israeli and U.S. attacks on Iran and Tehran’s military response forced the closure of airspace in various countries across the Middle East, including the United Arab Emirates, along with key airports such as Dubai and Doha.
“Some repositioning, cargo and repatriation flights may operate in coordination with UAE authorities and subject to strict operational and safety approvals,” the airline said in a statement to Reuters, adding that all scheduled commercial flights to and from Abu Dhabi remained cancelled.
The airline’s website showed several flights had departed from Abu Dhabi’s Zayed International Airport on Monday for destinations that included London, Paris, Moscow and Amsterdam. It also showed more flights scheduled for Jeddah, Saudi Arabia and Kochi, India among others.
Etihad did not specify which flights were being used for repatriations of people stranded by the conflict.
The airline had said earlier in a travel note on its website that all its flights to and from Abu Dhabi were suspended until 10:00 GMT on Tuesday.
– Reuters
03/02/26 08:37Chinese foreign minister speaks to Iranian counterpart
– James Griffiths
Wang Yi, China’s foreign minister, spoke to his Iranian counterpart Monday, in Beijing’s first official communication with Tehran since its ally was attacked by the U.S. and Israel on Saturday.
Beijing has repeatedly called for an immediate end to hostilities and warned of the risk a wider conflagration poses both to the region and the world at large.
According to a Chinese readout, Mr. Wang “reaffirmed China’s principled stance on the current situation in Iran, noting that China highly values the traditional friendship between China and Iran.”
“China has publicly stated its position of fairness and justice, and hopes to continue playing a positive role in preventing the escalation of regional tensions,” he added. “China supports Iran in safeguarding its sovereignty, security, territorial integrity and national dignity, and in defending its legitimate rights and interests.”
Mr. Wang, whose first call amid the crisis was to Russian Foreign Minister Sergei Lavrov, in which both voiced opposition to the strikes, said Beijing was “confident that amid the current grave and complex situation, Iran will maintain national and social stability, take into account the legitimate concerns of neighboring countries, and ensure the safety of Chinese citizens and institutions in Iran.”
At least 3,000 Chinese nationals have evacuated Iran while one was killed as a result of the bombing, the Chinese foreign ministry said earlier.
03/02/26 08:26Pentagon says Iran will not be ‘endless war’Open this photo in gallery:
U.S. Defense Secretary Pete Hegseth takes questions during a press conference on U.S military action in Iran, at the Pentagon in Washington, D.C., on Monday.BRENDAN SMIALOWSKI/AFP/Getty Images
U.S. Defense Secretary Pete Hegseth said on Monday that military operations against Iran would not lead to an “endless war” and that the aim was to destroy Tehran’s missiles, Navy and other security infrastructure.
“We’re hitting them surgically, overwhelmingly and unapologetically,” Mr. Hegseth said during a press conference at the Pentagon.
– Reuters
03/02/26 08:00Watch: U.S. Defense Secretary Pete Hegseth to hold news conference
– Globe staff
U.S. Defense Secretary Pete Hegseth and Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, will give a news conference at 8 a.m. ET, the Defense Department posted on X.
It will be their first news conference since the U.S.-Israeli operation against Iran began on Saturday.
03/02/26 07:49Anand won’t say if Canada views strikes on Iran as legalOpen this photo in gallery:
Finance Minister François-Philippe Champagne, right, and Foreign Minister Anita Anand, second left, talk to Indian ministers and officials in New Delhi, India on Monday.Manish Swarup/The Associated Press
Foreign Affairs Minister Anita Anand faced repeated questions about the conflict in the Middle East while taking part in a media scrum in New Delhi, but would not say whether or not Canada sees U.S.-Israeli strikes on Iran as a violation of international law when asked by reporters.
The minister was filling in for Prime Minister Mark Carney, who abruptly cancelled his scheduled meeting with reporters.
Anand says Canada was not involved in the U.S.-Israeli attack on Iran Saturday that killed Ayatollah Ali Khamenei, had no advance notification and will not participate in any military action.
The minister added that Canada would like to see a diplomatic solution when that’s possible.
Carney and Anand issued a joint statement Saturday saying that Canada supports the U.S. “acting to prevent” Iran from obtaining a nuclear weapon.
– The Canadian Press
03/02/26 07:31Fourth U.S. service member dies of injuries in Iran operation, U.S. military says
A fourth U.S. service member has died of injuries sustained in the U.S. operation in Iran, Central Command said on Monday.
The service member had been seriously wounded during Iran’s initial attacks and eventually succumbed to their injuries, Central Command said in a statement.
– Reuters
03/02/26 07:17More than 300 people have fled Iran via Azerbaijan, source close to government says
A total of 312 people have been evacuated from Iran via Azerbaijan since Saturday, including 101 Azerbaijanis and others from 19 countries including China, Russia and Pakistan, a source close to the government in the capital city of Baku said on Monday.
The 312 entered Azerbaijan between 8 a.m. local time on February 28, and 10 a.m. local time on March 2, amid U.S. and Israeli strikes on Iran over the weekend, the source said.
Iran and Azerbaijan share a 689-km border, and Iran has a large ethnic Azerbaijani population.
Russia’s embassy in Baku said on Sunday that about 500 Russian nationals were preparing to evacuate from Iran to Azerbaijan via the Astara crossing on the Caspian Sea, with 39 having crossed by the end of Sunday.
Moscow has advised its citizens to move to safer areas in Israel and Iran and recommended that those in Iran leave via Armenia or Azerbaijan.
– Reuters
03/02/26 07:06Oil prices jump as Iran conflict escalates
Oil prices jumped on Monday as the U.S., Israel and Iran stepped up their conflict in the Middle East, with attacks damaging tankers and disrupting shipments from the key producing region.
Reuters
03/02/26 07:01Qatar halts LNG production as Saudi refinery, Iraqi and Israeli oil and gas fields shutOpen this photo in gallery:
Vehicles move along a road as smoke billows from Saudi Aramco’s Ras Tanura oil refinery after a reported Iranian drone strike in Saudi Arabia on March 2.Stringer/Reuters
Qatar halted production of liquefied natural gas on Monday and Saudi Arabia shut its biggest domestic oil refinery after a drone strike, a source said, as Israeli and U.S. strikes and Iranian retaliation triggered precautionary shutdowns of oil and gas facilities across the Middle East.
A wave of attacks on the region stretched into a third day, resulting in the suspension of most oil production in Iraqi Kurdistan and several major Israeli gas fields, throttling exports to Egypt.
Oil prices surged 13 per cent to above $82 a barrel, the highest since January, 2025, as the conflict ground shipping to a near halt in the Strait of Hormuz, through which a fifth of global oil supply flows.
State oil giant Saudi Aramco’s Ras Tanura refinery, which was shut as a precautionary measure, is part of an energy complex on the kingdom’s Gulf coast that also serves as a critical export terminal for Saudi crude oil.
The situation at the Ras Tanura refinery is under control, the source said. Two drones were intercepted at the facility, with debris causing a limited fire, the Saudi defense ministry’s spokesperson said on Al Arabiya TV, adding there were no injuries.
Qatar’s government said an energy facility belonging to gas giant QatarEnergy was attacked by two Iranian drones on Monday, with authorities still assessing the damage.
In Iraqi Kurdistan, which exported 200,000 barrels of oil per day via pipeline to Turkey’s Ceyhan port in February, companies including DNO, Gulf Keystone Petroleum, Dana Gas and HKN Energy have stopped output at their fields as a precaution, with no damage reported.
The Israeli government instructed Chevron to temporarily shut down the giant Leviathan gas field offshore Israel,where it is in the process of expanding capacity to around 21 billion cubic metres a year as part of a $35-billion export deal to Egypt. A spokesperson for Chevron, which also operates the Tamar gas field offshore Israel, said its facilities were safe.
– Reuters
03/02/26 06:53U.N. nuclear watchdog chief says no indication Iran nuclear sites were hit
U.N. nuclear watchdog chief Rafael Grossi said on Monday that his agency stands by its assessment that there is no indication Iran’s nuclear facilities were damaged or hit in the U.S. and Israeli military strikes on the country.
Iran’s ambassador to the International Atomic Energy Agency said earlier on Monday a nuclear facility at Natanz had been attacked. So far the agency has seen nothing comparable to the attacks on Iran’s nuclear sites that Israel and the United States carried out in June, Grossi told a press conference.
– Reuters
03/02/26 06:50Kuwait shoots down U.S. jets in friendly-fire incident, U.S. Central Command says
Kuwait’s air defences mistakenly shot down three U.S. F-15 fighter jets during active combat on Monday, U.S. Central Command said, describing it as an apparent friendly‐fire incident during the conflict with Iran.
All six crew members ejected from the aircraft safely, were recovered and are in stable condition, Central Command said.
“During active combat – that included attacks from Iranian aircraft, ballistic missiles, and drones – the U.S. Air Force fighter jets were mistakenly shot down by Kuwaiti air defenses,” Central Command said.
It said that Kuwait had acknowledged the incident and that an investigation was under way.
Video images showed a U.S. warplane falling out of the sky over Kuwait early on Monday, while a person could be seen parachuting. The location was verified by Reuters as filmed in the Al Jahra area of Kuwait.
Footage circulating on Monday (March 2) showed a military aircraft falling from the sky in Kuwait’s Al Jahra area, accompanied by a parachuting pilot, as conflict escalated across the region following Iranian strikes. Kuwait’s Ministry of Defence confirmed the crash of multiple U.S. military aircraft in its territory but noted that all crew members survived and were in a stable condition.
Reuters
In a separate incident, smoke was seen rising from the vicinity of the U.S. Embassy compound in Kuwait City, and fire trucks and ambulances were in the area, a witness told Reuters.
There were no responses to requests for comment on the embassy incident from the U.S. Embassy in Kuwait, or from the U.S. State Department.
– Reuters
03/02/26 06:41Asia’s jet fuel, diesel cash premiums hit multi-year highs on Mideast concerns
Asia’s jet fuel and diesel cash differentials soared to multi-year highs on Monday as the markets priced in the risks of supply disruption because of the widening conflict in the Middle East, multiple regional trade sources said on Monday.
Jet fuel cash differentials ended the trading session at a premium of $4 a barrel, LSEG pricing data showed, more than $2 higher than the previous close and at levels last seen in September, 2022.
Diesel cash differentials were at premiums of around $4.25 a barrel, levels last hit in November, 2022, according to the data.
Refining margins for both 10ppm-sulphur gasoil and jet fuel edged up to around $30 a barrel or more, close to nearly four-month highs.
Markets today: North American stock futures slide as Middle East conflict escalates
The biggest market driver was concern about the disruption of middle distillates supplies loading from the Strait of Hormuz, with possible knock-on effects for demand for Asia-loading cargoes, the trade sources said.
In particular, they said Europe may need to seek replacement supplies from Asia if the conflict and disruption are prolonged, they said.
Nearly 600,000 metric tons of diesel flows per month from exporters in the Strait of Hormuz went to Europe last year, according to Kpler ship tracking data. Jet fuel flows on this route averaged 1.1 million tons per month.
Around 40 per cent of jet fuel exported from refiners via the Strait of Hormuz were bound for Europe last year, according to the data.
– Reuters
03/02/26 05:25Israel targets Hezbollah in fresh strikes on Beirut
-Mark MacKinnon
Motorists block the highway as they flee villages in southern Lebanon along the coastal road through the city of Sidon on March 2.MAHMOUD ZAYYAT/AFP/Getty Images
Israel continued to carry out strikes across Lebanon on Monday, targeting the Iranian-backed Hezbollah militia in a further expansion of the war that the United States and Israel launched against Iran on Saturday.
Israel launched a fresh airstrike on the southern suburbs of Beirut on Monday, saying it had target a “senior” Hezbollah official. That attack followed an overnight bombardment of the same area, as well as an intense series of strikes targeting Hezbollah strongholds in southern Lebanon and the eastern Bekaa Valley.
The Lebanese government said 31 people were killed in the overnight strikes, while 149 others were injured. Israel also dropped leaflets warning residents of 53 villages to move at least one kilometre away, saying “anyonewho is near Hezbollah operatives, facilities, and weapons is putting their life at risk.”
In the aftermath, long traffic jams formed on the highways towards Beirut and northern Lebanon.
The Israeli campaign started after Hezbollah launched a barrage of rockets at the Israeli port of Haifa, an attack the group said was revenge for Saturday’s assassination of Ayatollah Ali Khamenei, the Supreme Leader of Iran who was also revered as a religious leader by many Shia Muslims outside the country.
The exchange of cross-border fire was the largest since a two-month war in 2024 that left Hezbollah badly weakened.
Beirut remained tense on Monday, with the military deployed outside the country’s lone airport and at major intersections, as internal refugees began to arrive in the city centre. An Israeli reconnaissance drone buzzed overhead throughout the day.
03/02/26 05:16Oil and gas leap and stocks slump as war in Iran intensifies
-Eric Reguly
Oil and natural gas prices jumped Monday morning, on the third day of U.S. and Israeli attacks on Iran, as tanker traffic in the Strait of Hormuz shipping lanes virtually disappeared. Global stocks fell.
By mid-morning London time, Brent crude, the effective international benchmark, had climbed almost 10 per cent over Friday’s close, taking the price to US$80 a barrel. In early January, before rumours of war hit the market, the price was US$60.
European gas prices climbed about 25 per cent. Qatar and the United Arab Emirates are the source of about one-fifth of the global liquefied natural gas (LNG) and much of the supplies pass through Hormuz on their way to Europe.
While oil’s rise was expected, the price has not reached crisis levels.
In previous global emergencies, oil went far higher. Brent crude breached US$100 in late February, 2022, after Russia launched its full-scale invasion of Ukraine and reached US$130 a month later. In 2008, just ahead of the financial crisis, oil went to US$145, then crashed to US$40, when the deep recession hit.
It appears oil traders and investors are gambling that the narrow Strait of Hormuz, through which 20 per cent of the world’s oil passes, taking shipments from the Persian Gulf to the Gulf of Oman and onto the Indian Ocean, won’t stay effectively shut for long. Meanwhile, the global oil markets appear to be brimming with surplus oil and stockpiles, providing some price cushion.
03/02/26 05:02Kremlin says it is in contact with Iranian leaders
The Kremlin said on Monday that Russia was in constant contact with the Iranian leadership about what it called the “outright aggression” against Tehran and was deeply disappointed by how events had unfolded.
Russian President Vladimir Putin on Sunday condemned the killing of Iranian Supreme Leader Ayatollah Ali Khamenei as a “cynical” murder and the Russian Foreign Ministry has accused the U.S. and Israel of plunging the Middle East “into an abyss of uncontrolled escalation.”
Kremlin spokesman Dmitry Peskov said on Monday that Russia was analysing the situation and drawing its own conclusions after Washington opted to launch strikes at Iran despite what Moscow thought had looked like promising talks.
“Despite reports of significant progress in these negotiations, the situation has nevertheless deteriorated into outright aggression,” Peskov told reporters.
He said that Putin was due to make an Iran-related international phone call later on Monday, but did not disclose to whom.
– Reuters
03/02/26 04:46U.S. fighter jets crash in Kuwait, country’s Defence Ministry said
Several U.S. military aircraft crashed in Kuwait early on Monday, but all crew members survived and were in stable condition, Kuwait’s Ministry of Defence said.
The Kuwait Defence Ministry statement, which was carried by the state news agency, said the crews from the crashed aircraft were evacuated and transferred to hospital and were in stable condition. It added that the response was carried out in coordination with U.S. forces.
Iran’s state media cited the Islamic Revolutionary Guard Corps as saying Iranian armed forces hit a U.S. plane that crashed in Kuwait.
Online video verified by Reuters as being taken in the Al Jahra area of Kuwait showed a military aircraft falling from the sky and a person parachuting in the same shot.
The Kuwaiti statement did not specify how many aircraft were involved.
Two workers were slightly injured by falling debris at Kuwait’s Mina Al-Ahmadi refinery, Kuwait’s National Petroleum Company said on X.
– Reuters
03/02/26 04:09Dubai under fire as Iranian missiles target the UAE
Iranian missiles and drones have hit the United Arab Emirates, shaking Dubai’s image as a safe, tax-free haven for foreigners.
The Associated Press
03/02/26 03:39Beijing warns expanded war threatens global economic stability
-James Griffiths
An aerial view of the strait of Hormuz in 2023 shows just how narrow the waterway is.Nicolas Economou/Reuters
Beijing has warned the expanding conflict around Iran could threaten the “vital” Strait of Hormuz, through which some 20 per cent of the world’s oil and gas supply passes en route from the Persian Gulf into the Arabian Sea.
Speaking to reporters in the Chinese capital Monday, foreign ministry spokeswoman Mao Ning said “the Strait of Hormuz and its adjacent waters are vital international routes for cargo and energy trade.”
“Safeguarding security and stability in this region serves the common interests of the international community,” Ms. Mao said. “China urges all parties to immediately cease military actions, prevent further escalation of tensions, and avoid regional turbulence inflicting greater damage on global economic development.”
As with heavily sanctioned Venezuelan oil, China was a major buyer of Iranian crude, and disruptions to this supply could hurt small scale Chinese refiners specializing in oil that cannot go to market in much of the world. But the broader Chinese economy should be resilient to any immediate shocks from the war in Iran, said Wang Yiwei, a professor of international affairs at Renmin University in Beijing.
“China already has massive petroleum reserves, plus new energy sources now account for about one-third of our structure,” he said. “On land, Russia is stable, and combined with our large petroleum reserves and new energy, I feel we’ve already made preparations for the worst-case scenarios.”
03/02/26 03:13Kuwait says hostile drones intercepted, U.S. embassy hitOpen this photo in gallery:
Smoke rises from an area surrounding the U.S. Embassy in Kuwait following a strike March 2.VIDEO OBTAINED BY REUTERS/Reuters
Iran and Iranian-backed militias fired missiles at Israel and Arab states, apparently hitting the U.S. Embassy compound in Kuwait.
As fire and smoke rose from inside the embassy compound in Kuwait City, the country’s defense ministry said “several” American warplanes had also crashed in the country.
The Kuwaiti Defense Ministry did not elaborate on what caused the crashes or how many aircraft were involved, but said the pilots had been taken to a hospital and were in stable condition. The U.S. military did not immediately respond to a request for comment.
Kuwait said its air defences intercepted hostile drones while the U.S. embassy issued a warning to take cover due to the threat of missile and hostile drone attacks.
Witnesses saw a heavy presence of security, ambulances and fire trucks near the U.S. embassy, while a video showed black smoke rising from the surrounding area.
– Reuters and The Associated Press
03/02/26 03:07U.K. sending rapid teams to help citizens leave Gulf
British foreign minister Yvette Cooper said on Monday that Britain was setting up support systems to help evacuate its citizens from the Gulf with an estimated 300,000 people living in the region.
“We are looking at a wide range of options, working, crucially with the travel industry and with government evacuation if necessary,” Cooper told Sky News.
The British government wanted airspace to be re-opened and it was sending rapid deployment teams to the region to work with the travel industry, she said.
– Reuters
03/02/26 02:30China urges halt to military actions in Iran conflict
China’s Foreign Ministry on Monday urged all parties involved in the Iran conflict to cease military actions and prevent an escalation of the conflict.
The United States and Israel’s strikes against Iran violated international law and China is deeply concerned about spillover effects on neighbouring countries, Mao Ning, a spokesperson for the ministry, told a regular press briefing.
China believes that the sovereignty, security and territorial integrity of the Gulf states should be fully respected and supports countries to strengthen communication, Mao said.
– Reuters
03/02/26 02:27U.S. futures, Asian shares open lower, oil prices soar
The U.S. and Israeli attacks on Iran rattled world markets on Monday, with U.S. futures falling more than 1% and oil prices soaring, though gains for defense contractors and oil companies helped limit losses in Asian trading.
The future for the S&P 500 sank 1.4% while the contract for the Dow Jones Industrial Average was down 1.2%.
Shares did fall in most Asian markets but they rose in Shanghai, where higher oil prices lifted some oil company stocks such as CNOOC, China Petroleum & Chemical and PetroChina to the 10% limit.
The Shanghai Composite index climbed 0.5% to 4,185.29, while in Hong Kong, the Hang Seng lost 2% to 26,102.53.
Japan’s Nikkei 225 index initially fell more than 2%. It closed 1.4% lower at 58,057.24. Offsetting other losses, shares in defense-related stocks including Mitsubishi Heavy Industries and IHI Corp. advanced.
The price of gold, which usually is viewed as a safe haven for investment in times of uncertainty, rose 2.7% to about $5,392 per ounce.
Traders are betting the supply of oil from Iran and elsewhere in the Middle East will slow or grind to a halt.
The price of a barrel of U.S. benchmark crude oil initially surged about 8%. By mid-afternoon Tokyo time it was up 7.5% at $72.06 per barrel. Brent crude jumped 8% to $78.69 per barrel.
– Reuters
03/02/26 01:49Oil spikes as widening Iran conflict disrupts supply flow
Oil prices surged by as much as 13% on Monday after shipping in the crucial Strait of Hormuz was disrupted by retaliatory Iranian attacks following initial bombing by Israel and the United States that killed Iranian Supreme Leader Ali Khamenei.
Brent crude futures rose to as much as $82.37 a barrel, the highest since January 2025, before retreating to be up $5.41, or 7.4%, to $78.28 by 0605 GMT.
U.S. West Texas Intermediate crude climbed to an intraday high of $75.33, up over 12% and the highest since June, though it later pared gains and was up $4.74, or 7.1%, at $71.76.
Both benchmarks jumped as a sustained exchange of counterattacks damaged tankers and sharply disrupted shipments in the Strait of Hormuz, a waterway between Iran and Oman that connects the Gulf to the Arabian Sea.
“Markets are acknowledging the seriousness of the conflict, but are also signalling that, for now, this is a geopolitical shock, not a systemic crisis,” said Priyanka Sachdeva, senior analyst at Phillip Nova.
03/02/26 01:39Suspected drone strike hits British air base in Cyprus
A drone strike hit Britain’s Royal Air Force base of Akrotiri in Cyprus overnight, causing limited damage and no casualties, the island’s president and Britain’s defence ministry said on Monday.
The first attack on the British military facility since a rocket attack by Libyan militants in 1986, the incident represents a marked escalation in the conflict.
“All the competent services of the republic are on alert and in full operational readiness,” President Nikos Christodoulides said in a speech.
The Shahed-type unmanned aerial vehicle caused minor damage when it crashed into the military facilities at 12:03 a.m., he added.
“I want to be clear: Our country does not participate in any way and does not intend to be part of any military operation,” Christodoulides said.
It was not immediately clear from where the Iranian-made Shahed had been fired. Two sources, speaking on condition of anonymity, told Reuters the British bases intercepted a second drone.
While the bases are regarded as British sovereign territory, Cyprus itself is an EU member, now holding the bloc’s rotating presidency.
– Reuters
03/01/26 22:40Attacks upend safe haven status of Persian Gulf countries
– Tim Kiladze, Clare O’Hara and Nicolas Van Praet
A plume of smoke rises from the Zayed Port following a reported Iranian strike in Abu Dhabi.RYAN LIM/AFP/Getty Images
Missile attacks across the Middle East are throwing the safe haven status of Persian Gulf countries into question, upending the investment thesis that lured wealthy foreigners and a growing number of Canadian companies to the region.
Cities such as Dubai and Abu Dhabi in the United Arab Emirates and Doha in Qatar have blossomed into global commerce hubs over the past two decades, backed by oil-rich governments that have funded modern infrastructure and gleaming skyscrapers.
As they blossomed, they also offered something many countries in the Middle East could not: political calm. The likes of Qatar, Oman and the UAE have developed reputations for being politically neutral, much like Switzerland, and that has made them less likely to be roped into regional wars.
03/01/26 21:44Who are the three men on Iran’s interim leadership council?
– Justine Hunter and Andrea Woo
Women walk past electoral posters of Ayatollah Alireza Arafi on Feb. 21.Vahid Salemi/The Associated Press
Three men have been appointed as Iran’s interim leadership council while the country’s religious leaders choose who will succeed Supreme Leader Ayatollah Ali Khamenei. The trio are not natural allies, nor is it immediately clear who will outrank the others.
Ayatollah Alireza Arafi, 67, is a senior cleric and member of the Guardian Council that vets candidates for president and has veto power over legislation, to ensure loyalty to and conformity with Sharia law. He leads prayers in Iran’s most important religious centre, Qom, and oversees education for religious leaders nationwide, notes the news organization Al Jazeera.
Masoud Pezeshkian attends the United Nations General Assembly.Angelina Katsanis/The Associated Press
President Masoud Pezeshkian, 71, is broadly seen as a reformist. A former heart surgeon, he took office on July 28, 2024. The president is the second-highest-ranking official in Iran, acting as the head of government that handles daily administration, economic policy and implements the Supreme Leader’s decrees. The Economic Times of India describes Mr. Pezeshkian as a technocrat known for his calm demeanour in turbulent times, including during nationwide protests over the rising cost of living in January.
Chief Justice Gholam-Hossein Mohseni-Ejei attends a meeting of the heads of the three branches of government in Tehran.Iranian Presidency/Reuters
Chief Justice Gholam-Hossein Mohseni-Ejei, 69, is considered an ultra-conservative who has been sanctioned for human rights abuses by Canada, the U.S., Switzerland, the European Union and others. He was appointed to the post in 2021 by Ayatollah Khamenei.
03/01/26 21:31Strikes against Iran involved AI, cyberattacks and drones
– Sean Silcoff
Two satellite images of Ayatollah Ali Khamenei’s compound in Tehran, Iran, in April, 2024, and after strikes on Feb. 28.Airbus/Pleiades Neo (Custom cred/Google Earth/Reuters
The U.S.-Israeli military attack that killed Iranian Supreme Leader Ayatollah Ali Khamenei and members of his high command involved widescale deployment of several cutting-edge technologies, including artificial intelligence and the first use by U.S. military forces of a weapon inspired by Iranian technology.
U.S. Central Command said Saturday that it had “employed low-cost one-way attack drones for the first time in combat.” The LUCAS drones cost US$35,000 each and were modelled after Iran’s Shahed-136s, which hit several Gulf state sites in response to the attacks on Tehran.
The drones complemented other technologies that have increasingly shaped recent military actions, including the capture by U.S. forces of deposed Venezuelan leader Nicolás Maduro in January.
Reuters reported Sunday a wave of cyberattacks took place alongside the U.S.-Israeli attacks. News websites were hacked and a religious calendar app called BadeSaba displayed messages telling users, “It’s time for a reckoning,” and urged armed forces to give up weapons and join the people. There was also a near-total internet blackout in Iran Saturday.
The U.S. military is a customer of Palantir Technologies Inc., a Denver-based data and analytics giant whose flagship products allow the use of virtual digital twins of physical locations to inform real-time decision making. Palantir’s AI-based software is also used by U.S. military intelligence to analyze drone and sensor data to pinpoint targets.
03/01/26 20:36A look at Iranian attacks on countries in the region
– Meera Raman
Following the U.S. and Israeli military strike on Iran on Saturday morning, Tehran responded with a wave of retaliatory missile and drone attacks across the Gulf region, home to several U.S. military bases.