NATO air defences in the eastern Mediterranean have shot down a ballistic missile that was fired from Iran and entered Turkiye’s airspace, the Turkish Defence Ministry said on Monday.

The ministry warned it would take necessary steps without hesitation.

This marks the second time an Iranian ballistic missile has been intercepted heading into the airspace of NATO member Turkiye in the last week.

In a statement, the ministry said some ammunition parts had fallen in the southeastern province of Gaziantep and that there were no casualties in the incident. It called on all parties to adhere to Ankara’s warnings.

Turkiye warned Iran on Saturday against firing more missiles towards it.

Hezbollah said on Monday its fighters clashed with Israeli troops in eastern Lebanon during an Israeli airborne raid overnight.

A spokesperson for the Israeli military had no immediate comment when asked about the Hezbollah statement.

In its statement, Hezbollah said its fighters had observed 15 helicopters flying over eastern Lebanon just after midnight, dropping Israeli troops who were seen approaching Lebanese territory from an area on the Syrian side of the border.

Lebanon’s eastern Bekaa Valley region is one of the Shi’ite Muslim group’s political and security strongholds.

The Israeli military carried out an airborne raid in the same area, near the village of Nabi Chit, overnight Friday-Saturday.

Lebanon’s health ministry said 41 people were killed in Israeli attacks in the Nabi Chit area on Saturday.

Russian President Vladimir Putin has congratulated Mojtaba Khamenei on his appointment as Iran’s new leader, the Kremlin said.

Putin said he was confident Khamenei would continue his father’s work “with honour” and unite the Iranian people “in the face of severe trials”.

He added that he wished to “confirm unwavering support for Tehran and solidarity with our Iranian friends”.

Oil prices surged over $119 a barrel, hitting ‌levels not seen since mid-2022, on Monday as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war with Iran.

Brent crude futures were up $13.02, or 14%, at $105.71 per barrel at 0917 GMT, while US West Texas Intermediate (WTI) crude futures were ​up $12.16, or 13%, at $103.06.

In a whiplash session, Brent had earlier hit a high of $119.50 a barrel, indicating the biggest-ever ​absolute price jump in a single day, and WTI reached $119.48 a barrel.

Before the surge on Monday, ⁠Brent had already climbed 28% and WTI 36% over the last week.

The Strait of Hormuz, through which roughly one-fifth of the ​world’s oil and liquefied natural gas typically passes, is virtually shut.

Also boosting prices is the appointment of Mojtaba Khamenei to succeed his ​father Ali Khamenei as Iran’s supreme leader, signalling that hardliners remain firmly in charge in Tehran a week into its conflict with the United States and Israel.

The war could leave consumers and businesses worldwide facing weeks or months of higher fuel prices even if the conflict, which started on ​February 28, ends quickly, as suppliers grapple with damaged facilities, disrupted logistics and elevated risks to shipping.

US gasoline contracts surged to ​their highest since 2022 at around $3.22 a gallon, at a time when US President Donald Trump has told US consumers the impact on ‌their cost ⁠of living would be limited ahead of the mid-term elections in November.

Governments can release strategic petroleum reserves to counteract supply disruptions.

US Senate Democratic Leader Chuck Schumer called on Trump to make such a move and a French government source said on Monday that the Group of Seven nations would also discuss this.

Iraq’s oil production from its main southern oilfields has fallen by 70%, sources said, with crude ​storage having reached maximum capacity.

Kuwait ​Petroleum Corporation began cutting oil output ⁠on Saturday and declared force majeure on shipments, though it did not say how much production it would shut.

Analysts expect OPEC heavyweights United Arab Emirates and Saudi Arabia will also have to ​cut output soon as they run out of oil storage.

Saudi Aramco has offered more than ​4 million barrels ⁠of Saudi crude in rare tenders as its export routes are throttled.

In gas markets, giant liquefied natural gas exporter Qatar had already stopped production after attacks on key infrastructure.

A fire broke out in the UAE’s Fujairah oil industry zone, resulting from falling debris, with no injuries reported. ⁠

Saudi Arabia’s ​Defence Ministry said on X that it intercepted a drone heading to the Shaybah oilfield.

Refinery ​disruptions add to fuel supply cuts, with Bahrain’s BAPCO announcing a force majeure following a recent attack on its refinery complex. Saudi Arabia has already shut its ​biggest oil refinery.

Iranians living abroad could have property confiscated and face other legal penalties if ​they express support for the United States and ‌Israel, the Iranian prosecutor general’s office said on Monday.

Some members of the Iranian diaspora who want political change ​in Tehran took to the streets of ​European and American cities to celebrate the ⁠killing of Supreme Leader Ayatollah Ali Khamenei ​in the US-Israeli war against Iran.

Iran on Monday named ​Mojtaba Khamenei to succeed his father.

“A warning has been issued to those Iranians living abroad who in different ways ​sympathise, support or cooperate with the American-Zionist (Israeli) ​enemy,” the prosecutor general’s office was quoted as saying by ‌state ⁠media.

“They will be met with the confiscation of all their properties and other legal penalties in accordance with the law.”

Newly established channels on Telegram ​have shared details ​of prominent ⁠Iranians living abroad who have posted comments critical of Iran’s clerical authorities ​and supportive of the US-Israeli military campaign ​that ⁠began on February 28.

Up to 5 million Iranians live abroad, the majority of them in the United ⁠States ​and Western Europe, according to ​Iranian government data.

Iranian media put their numbers closer to ​10 million.

Human Rights Watch (HRW) has reported that Israel used white phosphorus munitions in residential areas of southern Lebanon in recent strikes, a violation of international humanitarian law.

The New York-based rights organisation released its findings in a report on Monday, detailing the use of the incendiary chemical in populated areas.

HRW confirmed the authenticity of photos showing white phosphorus munitions fired over the residential area of Yohmor in southern Lebanon on March 3.

The attack reportedly caused fires to break out in at least two homes.

According to Ramzi Kaiss, a Lebanese researcher for HRW, the Israeli military’s use of white phosphorus in residential areas is “extremely alarming” and could result in long-term suffering for civilians.

“The incendiary effects of white phosphorus can cause death or cruel injuries, often resulting in lifelong suffering,” Kaiss said in the report.

He emphasised that the use of airburst white phosphorus in populated areas violates international law, as it is indiscriminate and fails to take all necessary precautions to avoid civilian harm.

White phosphorus, a chemical substance that ignites when exposed to oxygen, can set fire to homes, agricultural land, and other civilian infrastructure.

The HRW report highlights that the munitions were fired unlawfully over concentrated civilian populations, resulting in extensive damage.

HRW verified several images posted online by Lebanese media on March 3, which showed two white phosphorus munitions airbursting over a residential neighbourhood in Yohmor.

The shape of the smoke cloud was consistent with the M825-series 155mm artillery projectile, which is designed to carry white phosphorus.

HRW also confirmed photographs shared on Facebook by the civil defence team of the Islamic Health Committee in Yohmor, showing workers attempting to extinguish fires on rooftops and in a car.

The rights group concluded that the fires were likely caused by the white phosphorus munitions, given the proximity of the damage to the airburst site.

The report stressed that such attacks expose civilians to unnecessary risk, further exacerbating the humanitarian crisis.

HRW urged Israel to immediately cease the use of white phosphorus in populated areas and called on countries supplying Israel with weapons to suspend military assistance.

“Israel should immediately halt this practice,” Kaiss said.

“States providing Israel with white phosphorus munitions must halt military sales and pressure Israel to stop firing such weapons in residential areas.”

More than half a million people in Lebanon have been displaced due to Israel’s military operations.

The latest round of violence has also seen continued air strikes in Beirut’s southern suburbs, including the neighbourhoods of Ghobeiry and Haret Hreik, as well as the Safir area.

At least 394 people have been killed, and more than 1,000 injured in Israeli attacks across Lebanon.

HRW has urged Israel’s key allies, including the United States, the United Kingdom, and Germany, to suspend military sales to Israel and impose targeted sanctions on officials involved in committing grave crimes.

This is not the first time Israel has used white phosphorus in the region.

HRW documented the use of the chemical between October 2023 and May 2024 across southern Lebanon’s border villages, putting civilians at grave risk.

As the conflict escalates, international calls for accountability and an end to indiscriminate military tactics grow louder.

Governments scrambled ​to limit the impact on economies and consumers from the widening Iran war, which fuelled a record surge in oil prices ‌on Monday after key producers cut output and Tehran signalled that hardliners would remain in charge.

In a sign of mounting governmental concern over supply disruptions, the Group of Seven finance ministers will discuss the possibility of a joint release of emergency oil reserves in a meeting on Monday, a French government source said.

In South Korea, which buys 70% of its ​oil from the Middle East, President Lee Jae Myung said Seoul would cap fuel prices for the first time in nearly 30 ​years and he warned against panic buying.

Speaking at an emergency meeting, Lee called the crisis “a significant burden on our ⁠economy, which is highly dependent on global trade and energy imports from the Middle East.”

A senior Japanese member of Parliament on Sunday said the government ​had instructed a national oil reserve storage site to prepare for a possible crude release, although the country’s chief cabinet secretary later said no decision had been ​made to release stockpiles.

Japan imports around 95% of its oil from the Middle East. It has reserves to cover 354 days of consumption.

Elsewhere, Vietnam removed import tariffs on fuels and Bangladesh shut universities to conserve electricity and fuel, while China last week asked refiners to halt fuel exports and try to cancel shipments that were already committed.

Trump downplays price surge

President ​Donald Trump tried to downplay concerns about rising US gasoline prices, which were up 11% for the week on Friday, while Senate Minority Leader Chuck ​Schumer called on him to sell oil from the Strategic Petroleum Reserve.

“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, ‌is a ⁠very small price to pay for USA, and World, Safety and Peace,” Trump posted on Truth Social on Sunday night.

“ONLY FOOLS WOULD THINK DIFFERENTLY!”

Oil jumped 25%, with Brent on track for a record one-day gain, while OPEC producers Kuwait and Iraq cut output over the weekend as the crucial Strait of Hormuz remained effectively shut.

Brent jumps 25% on supply fears

Across Asia, which sources 60% of its oil from the Middle East, equities slid and the dollar rose as worries ​grew that the disruption in energy supplies ​could be prolonged.

Iran on Monday named Mojtaba ⁠Khamenei to succeed his father Ali Khamenei as supreme leader, a move that is expected to draw Trump’s ire.

Weekend attacks on Iranian oil storage facilities fuelled fears of retaliatory strikes on energy facilities.

In Bahrain, [Bapco Energies](https://www.reuters.com/business/energy/governments-scramble-limit-fallout-iran-war-oil-prices-surge-2026-03-09/declared force majeure on its group operations on Monday following a recent attack on its refinery complex, the company said) declared force majeure ​on Monday following an attack on its refinery complex, the company said.

“Oil prices have now gathered all ​the ingredients for a ⁠perfect storm — Middle East Gulf producers cutting output, the prolonged closure of the Strait of Hormuz … all compounded by a growing pessimism about a quick turnaround in the current situation,” said Kpler senior oil analyst Muyu Xu.

Iraq cut oil production at its main southern oilfields by 70% to 1.3 million barrels per day, three ⁠industry sources ​said on Sunday, while Kuwait Petroleum Corp began cutting oil output on Saturday and declared ​force majeure.

No. 2 LNG exporter Qatar has already halted exports of the superchilled fuel and analysts predict that the United Arab Emirates and Saudi Arabia will also have to cut output ​soon as they run out of oil storage due to the Strait of Hormuz closure.

Bangladesh will close all universities from Monday, bringing forward the Eid Al Fitr holidays as part of emergency measures to conserve ​electricity and fuel amid a worsening energy crisis linked to ‌the conflict in the Middle East.

Authorities said the decision applies to all public and private universities across the country, a move that officials said will not only ​reduce electricity consumption but also ease traffic congestion, which leads ​to fuel wastage.

Officials said university campuses consume large amounts of ⁠electricity for residential halls, classrooms, laboratories and air conditioning, and the ​early closure would help ease pressure on the country’s strained power ​system.

Government and private schools in Bangladesh are already closed for the holy month of Ramazan, meaning most educational institutions across the country will now remain shut ​during the period.

The move comes as Bangladesh faces mounting uncertainty over ​fuel and gas supplies following disruptions to global energy markets caused by the ongoing ‌conflict ⁠in the Middle East.

The country, which relies on imports for 95% of its energy needs, imposed daily limits on Friday on fuel sales after panic buying and stockpiling.

As part of broader austerity measures, the government has also ​asked all foreign‑curriculum schools and ​private coaching ⁠centres to suspend operations during this period to limit electricity use.

Severe gas shortages have already forced Bangladesh to halt ​operations at four of its five state‑run fertiliser ​factories, redirecting ⁠available gas to power plants to avoid widespread outages.

The country has also bought LNG from the spot market at sharply higher prices while seeking additional ⁠cargoes ​to bridge supply gaps.

“We are doing everything ​we can to reduce consumption and ensure stability in power, fuel and import supplies,” a ​senior energy ministry official said.

Prime Minister Shehbaz Sharif chaired a meeting on austerity that concluded on Monday, with all four provincial Chief Ministers participating via video link, government sources said.

The session reviewed recommendations focused on frugality and simplicity, and discussed potential economic impacts of the ongoing war and measures to stabilise the national economy.

Officials from all provinces and senior representatives of relevant institutions attended.

Officials were briefed on possible effects of regional and global developments on Pakistan’s economy, including challenges related to price fluctuations in international markets.

The Prime Minister emphasised that timely measures for economic stability are essential under the current international situation.

The government is closely monitoring developments, and maintaining national economic stability remains a top priority, the sources said.

The Prime Minister pledged that the government will provide maximum relief to citizens during difficult times.

Special instructions were issued to the federal cabinet, elected representatives, and senior officials to ensure effective use of resources and provide relief to the public.

All government employees and ministers were advised to adopt simplicity and frugality, with plans also set for the industrial and agricultural sectors.

The Prime Minister stressed that national production, exports, and food security should not be affected, and urged all segments of society to share the burden of frugality fairly, encouraging the privileged and elite to lead by example.

Briefings highlighted that Pakistan has adequate reserves of petrol, diesel, and other petroleum products, with arrangements in place for emergencies.

Officials also emphasised careful use of energy and fuel, with continuous monitoring of supply and demand to conserve government resources.

Provincial representatives presented plans in the context of global tensions, and provinces were directed to implement administrative measures effectively.

Instructions were given to maintain digital connectivity, including uninterrupted internet access for remote workers, and ensure the smooth continuation of work-from-home arrangements.

Sources said federal cabinet members will contribute to the national austerity plan, and the Prime Minister indicated that salaries and benefits could be reduced until the economic situation improves.

The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday — the first day of trading week.

Massive selling pressure was observed at the market, with the benchmark KSE-100 Index shedding nearly 13,000 points in the opening hours amid a sharp rise in oil prices.

The market opened on a negative note and by 9:22am, the benchmark KSE-100 was hovering at 147,715.95, down 9,780.15, or 6.21%, according to Business Recorder.

Following the 6% decline, a Market Halt was triggered, and all equity-based markets were suspended.

“All TRE Certificate Holders are hereby informed that due to a 5% decrease in the KSE-30 index from the previous trading day close of the same, a Market Halt has been triggered as per PSX Regulations and all equity-based markets have been suspended accordingly,” read the notice.

The market resumed trading at 10.22am.

However, selling pressure persisted, and by 10.55am, the KSE-100 declined to 144,386.71, down by 13,109.39 points or 8.32%.

It is important to note that the 100 Index closed at 157,496 points at the end of last week’s trading session.

Israel’s military said on Monday it struck infrastructure belonging to the Iranian-backed group Hezbollah in Beirut, the Lebanese capital.

Israel has been attacking in Lebanon since Hezbollah militants launched rockets and drones into Israel on March 2 to avenge the killing of Iran’s Supreme Leader Ali Khamenei.

Earlier, Israel’s military said it ​hit Iranian commanders in the Lebanese capital early on Sunday, expanding the scope of its campaign to the heart of Beirut after days ‌of strikes that have left nearly 400 people dead.

The drone strike was the first within the city limits of Lebanon’s capital since Israel-Hezbollah hostilities resumed last week, and came amid heavy bombardment on Beirut’s southern suburbs and the country’s south and east.

Israel said it targeted key commanders of Iran’s elite Quds Force of the Revolutionary Guards but did not name them.

“The commanders of the Quds ​Force’s Lebanon Corps operated to advance attacks against Israel and its civilians, while operating simultaneously for the IRGC in Iran,” ​the Israeli military said in a statement.

Two Israeli soldiers killed in Lebanon

An Israeli military source said the strike targeted five ⁠senior Quds Force members, including intelligence and finance personnel.

Lebanon says four people were killed in the strike, part of a rapidly rising death toll that has reached ​394 people, the health ministry said on Sunday, including at least 83 children and 42 women.

Israel’s military ​has so far killed about 200 alleged Hezbollah members, spokesman Nadav Shoshani said in an online briefing. Hezbollah has not published a toll for its fighters.

Israel’s military announced on Sunday that two Israeli soldiers had been killed in southern Lebanon, the first casualties in the Israeli army since the launch of the war.

Children among wounded

The Raouche neighbourhood on Beirut’s seafront is typically a tourist attraction, but in recent days has hosted people displaced by strikes, some ‌of whom ⁠stayed at the Ramada hotel.

Israel’s strike appeared to hit a corner suite on the hotel’s fourth floor.

A Reuters reporter observed that the windows of the suite were shattered and the surrounding facade blackened.

Ten people were also injured in the attack on Beirut’s Raouche area, the Lebanese health ministry said.

Khalil Abou Mohammad was staying in a building across the street after being displaced earlier this week.

His three children were wounded by the force of the strike and were undergoing surgery at a nearby hospital, he said ​as he showed Reuters bloodstained bed covers.

“We ​came to stay here, and as ⁠you can see, we were sleeping at 3.30 (am) and the strike hit,” Abou Mohammad told Reuters.

Other heavy bombardment in southern Lebanese towns on Sunday pulverised several homes, Reuters footage showed.

A children’s notebook lay in the debris near sheets of destroyed ​solar panels and cars buried under mounds of dust and debris.

Israel warns Iranian officials in Lebanon

Last week, Israel said it ​had killed the commander ⁠of Iran’s Quds Force in Lebanon, Daoud Ali Zadeh, in a strike in Tehran.

It said a strike on Beirut’s suburbs had killed Reza Khuza’i, whom it said was head of Hezbollah’s weapons build-up and chief of staff of the Quds Force’s Lebanon Corps.

Israel has warned any representatives of Iran in Lebanon to leave immediately or risk being targeted, and ⁠struck an ​area near the Iranian embassy in Lebanon earlier this week.

Dozens of Iranian nationals have left in recent days, ​and the Lebanese government has ordered authorities to arrest and deport any Iranian Revolutionary Guards in Lebanon, though it was unclear if they had done so.

Senior Hezbollah official Mahmoud Qmati has denied that Iranian ​forces are on the ground in Lebanon.

Amid escalating regional tensions, Gulf Cooperation Council (GCC) countries, including Qatar, Bahrain, Saudi Arabia, and the United Arab Emirates, came under drone and missile attacks on Monday, likely launched by Iran in apparent retaliation for US and Israeli air strikes, sources said.

In Saudi Arabia, the Defence Ministry reported that several drones targeting the Shaybah oilfields in the Empty Quarter were intercepted.

The facility, operated by Aramco, typically produces over a million barrels of oil per day.

The ministry also said it shot down two drones north of the capital, Riyadh, and intercepted a projectile aimed at the city’s diplomatic district.

The UAE also faced attacks, with authorities reporting a large fire in Fujairah caused by debris from an intercepted projectile.

In Iraq, Kurdish and federal authorities reported multiple drone interceptions.

The Kurdish Rudaw news outlet said air defences at Erbil International Airport successfully intercepted a drone targeting the facility, which hosts US forces.

Near Baghdad International Airport, several drones were also shot down.

Security sources told media that a drone approaching Victoria Base, a US-operated military compound inside the airport, was intercepted on Monday morning.

Earlier, a woman was injured after drones were downed over Baghdad’s Al I’alam neighbourhood.

The attacks mark a further escalation in the region following recent US and Israeli strikes, raising concerns about broader retaliatory actions across the Middle East.

Oil prices surged around 25% on Monday to their highest since mid-2022, with Brent on track ‌for a record one-day gain, while gold fell 2% as an escalating Iran war squeezed world energy supplies, boosted the dollar and dampened hopes of interest-rate cuts.

Agriculture markets, led by edible oils, rose as they took their cue from oil prices due to the extensive use ​of vegetable oils in making biofuels.

Aluminium firmed on supply worries even as other metals faced headwinds from ​a stronger dollar.

“The violent reaction stems from the markets seeing no obvious offramp in the escalating ⁠Middle East conflict, now a high-stakes standoff where neither side appears willing to blink first,” Tony Sycamore, IG market ​analyst, said in a note.

“The risk of more lasting economic damage continues to build by the day.”

Iran on Monday named Mojtaba Khamenei ​to succeed his father Ali Khamenei as Supreme Leader, signalling that hardliners remain firmly in charge in Tehran a week into its conflict with the United States and Israel.

Soaring oil lifts vegoils, grains

Brent was on track for its biggest one-day gain ever in both percentage and ​absolute terms as the expanding US-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies, and ​on fears of prolonged disruption to shipping through the Strait of Hormuz chokepoint.

Brent crude futures climbed to a high of $119.50 per barrel ‌and US ⁠West Texas Intermediate (WTI) to $119.48 a barrel.

“…the situation appears to be deteriorating further,” ING analysts said in a note.

“In addition, upstream oil production has started to shut in, with producers facing storage constraints. Iraq, Kuwait, and the UAE began reducing oil production.”

In agricultural markets, Malaysian palm oil rose 9% and Chicago soybean oil climbed to its highest since late 2022, buoyed by ​the crude oil rally.

Wheat ​rose to its highest ⁠since June 2024 and corn prices hit a 10-month high.

Gold fell more than 2% as a stronger dollar weighed on greenback-priced bullion, while higher energy costs fuelled inflation concerns and further ​dimmed the prospects for near‑term reductions in interest rates.

The dollar hovered near a three-month ​high hit last ⁠week, making bullion more expensive for holders of other currencies.

Oil-driven inflation fears and delayed rate-cut expectations likely strengthened US yields and the dollar, outweighing safe-haven demand and pushing gold down.

Aluminium jumps on supply disruptions

Aluminium soared to its highest in four years as ⁠supply concerns ​due to the Middle East war intensified.

Benchmark three-month aluminium on the London ​Metal Exchange hit its highest since March 2022 at $3,544 per ton.

Qatari smelter Qatalum and Aluminium Bahrain have already declared force majeure on shipments amid rising ​tensions in the Middle East.

Other base metals were weighed down by a firmer dollar.

Iran’s clerical leadership chose confrontation over compromise in appointing Mojtaba Khamenei to succeed his father, Ali Khamenei, a move regional officials say is a direct rebuke to US President Donald Trump, who had declared the son “unacceptable”.

Supreme Leader Ayatollah Ali Khamenei was ​killed in a US-Israeli strike at the start of the conflict, now in its second week.

The appointment of Mojtaba as his successor by the Assembly of Experts locks hardliners firmly ‌in control in Tehran — a gamble that could reshape Iran’s war with the US and Israel and reverberate far beyond the Middle East.

“Having Mojtaba take over is the same playbook,” said Alex Vatanka, a senior fellow at the Middle East Institute.

“It’s a big humiliation for the United States to carry out an operation of this scale, risk so much, and end up killing an 86-year-old man, only to have him replaced by his hardline son.”

Under Iran’s complex, theocratic system, the supreme ​leader is the ultimate authority, including over foreign policy and Iran’s nuclear programme, as well as guiding the elected president and parliament.

Iran on path of further confrontation

Analysts say the choice ​of Mojtaba, a deeply hardline cleric whose wife, mother and other family members were also killed in US–Israeli strikes — sends an unequivocal message: Iran’s leadership ⁠has rejected any prospect of compromise to preserve the system and sees no path forward except confrontation, revenge and endurance.

According to insiders, Mojtaba will face immense internal and external strain from a disaffected population and ​an escalating conflict, but is expected to move swiftly to consolidate power.

That will likely mean expanded authority for the Islamic Revolutionary Guard Corps, harsher domestic controls and sweeping repression to crush dissent.

“The world will miss ​the era of his father,” a regional official close to Tehran told Reuters.

“Mojtaba will have no choice but to show an iron fist… even if the war ends, there will be severe internal repression.”

That stance comes after months of deepening domestic unrest — the bloodiest since the 1979 Islamic Revolution — that had already weakened the Islamic Republic before the war began.

Iran was grappling with a battered economy, soaring inflation, currency collapse and widening poverty, alongside tightening repression that had fuelled public anger and ​protests — pressures now likely to intensify under wartime rule.

Bleak days ahead

Difficult days lie ahead under Mojtaba, with far tighter internal controls, intensified pressure at home and an even more aggressive, hostile posture abroad, said ​another Iranian insider familiar with the situation on the ground.

Paul Salem, a senior fellow at the Middle East Institute, said Mojtaba was not a figure positioned to strike a deal with the United States or pivot diplomatically.

“Nobody emerging now ‌is going ⁠to be able to compromise,” Salem said. “This is a hardline choice, made in a hardline moment.”

“Mojtaba is even worse and more hardline than his father,” said Alan Eyre, former US diplomat and Iran specialist, adding that he was the preferred candidate of the Guards. “He’s going to have a lot of revenge to exact.”

That calculus carries risks. Israel ​has warned that any successor to Khamenei would also ​be a target, while Trump has said ⁠the war may only end once Iran’s military leadership and ruling elite are eliminated.

Opposition to reformists

A powerful mid‑ranking cleric, Mojtaba, 56, has long opposed reformist groups advocating engagement with the West.

His close ties to senior clerics and the IRGC — which dominates Iran’s security forces and its economy — give him leverage ​across the state’s political and coercive security institutions.

He amassed influence under his father as a key figure within the security apparatus and the vast business ​empire it controls, operating for ⁠years as Ali Khamenei’s gatekeeper and, in practice, a “mini-supreme leader”, analysts say.

His elevation comes as the US-Israeli campaign against Iran intensifies, with joint strikes hitting fuel depots and other targets inside Iran, while Iranian missiles and drones have struck Gulf states, widening the conflict.

Mojtaba studied under conservative clerics in the seminaries of Qom and holds the clerical rank of Hojjatoleslam.

The US Treasury sanctioned Mojtaba in 2019, saying he represented the ⁠supreme leader ​in an official capacity despite never holding elected or formal government office.

A Gulf source familiar with regional government thinking said of ​Mojtaba’s appointment: “This tells Trump and Washington that Iran will not back down, they will fight on until the finish.“

Salem, of the Middle East Institute, likened Iran’s trajectory to Iraq under Saddam Hussein after 1991 or Syria under Bashar Al Assad after 2012 — governments that ​survived years of war and isolation but steadily lost control.

“They’re doubling down on the hard line,” Salem said. “Internally, it’s terrible — and deeply destabilising.”

The government is set to announce a national austerity plan today (Monday) in view of the prevailing international situation following the US-Israeli air strikes on Iran and Tehran’s retaliatory attacks.

Chairing a meeting in Lahore on Sunday, Prime Minister Shehbaz Sharif said that timely steps to ensure economic stability are essential in view of the escalating regional tensions.

The prime minister said the government was closely monitoring developments and would take all necessary decisions to safeguard the national economy.

During the briefing, officials informed the meeting that the current regional situation could affect Pakistan’s economy, particularly through disruptions in energy supplies and fluctuations in global commodity prices.

The government, they said, was taking precautionary measures in advance to mitigate potential impacts.

The prime minister directed the federal cabinet, elected representatives and senior officials at both federal and provincial levels to play their full role in ensuring relief for the public and promoting efficient use of national resources.

He also stressed that ministers and government employees must adopt simplicity and austerity during the challenging economic period.

“Once this difficult phase passes and the economy strengthens, the government will provide maximum possible relief to the public,” the premier said.

Officials presented several proposals related to austerity and savings aimed at stabilising the economy.

The meeting emphasised that the austerity directives would not apply to the industrial and agricultural sectors to ensure that production, exports and food security remain unaffected.

The prime minister also underscored that the burden of austerity should be shared fairly and called on privileged and elite segments of society to set an example by voluntarily accepting necessary adjustments.

Officials also briefed the meeting that adequate reserves of petrol, diesel and other petroleum products were available in the country and arrangements had already been made to deal with any emergency situation.

At the same time, the need for prudent energy management and careful fuel consumption was highlighted.

The meeting was informed that the Ministry of IT would introduce a system for continuous monitoring of demand and supply to help ensure efficient use of government resources and energy.

Chief secretaries of the four provinces also briefed the prime minister on economic activity, energy consumption and administrative preparedness in their respective provinces.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and other senior officials.

The leadership of Iran’s armed forces has pledged allegiance to the new Supreme Leader, Mojtaba Khamenei, Iranian state media said.

The powerful Islamic Revolutionary Guard Corps also said in a statement that they are ready ‌to follow the ⁠new supreme leader.

Pezeshkian: Choice shows national unity

Iran’s President Masoud Pezeshkian said the naming of a new supreme leader was the manifestation of Iran’s will to strengthen national unity.

The position gives Mojtaba the final say in all matters ​of state in the Islamic Republic.

Pezeshkian released the statement on Telegram early on Monday, extolling what he said would be Mojtaba’s wise leadership and calling his father a martyr.

Saudi Arabia warns of escalation if attacks continue

Saudi Arabia’s foreign ministry said on Monday that continued Iranian attacks would lead to further escalation and have a serious impact on relations between the two countries ‘now and in the future’.

Saudi Aramco’s Ras Tanura, which houses its largest ​domestic refinery and a key crude export terminal, was struck twice last week by Iranian drones.

The US embassy in Riyadh was also hit by apparent Iranian drones last week.

Israel launched more strikes on Iran

The Israel Defence Forces said that new air strikes on Iran are ongoing.

“The IDF has begun an additional wave of strikes on Iranian terror regime infrastructure in central Iran,” the statement said.

Israel continued to target senior Iranian figures, including Abolqasem Babaian, the recently appointed head of the military office of the supreme leader, who Israel says was killed in a Saturday strike.

War’s end will be ‘mutual’ decision: Trump

US President Donald Trump spoke about the US-Israeli war on Iran on Sunday, saying the decision on when to end the war will be a ‘mutual’ one made with radical Israeli regime leader Benjamin Netanyahu.

Speaking by phone with The Times of Israel, Trump said Netanyahu will have input on resolving the conflict.

“I think it’s mutual … a little bit. We’ve been talking. I’ll make a decision at the right time, but everything’s going to be taken into account,” Trump said.

Iranian drone strike injures 32 in Bahrain

At least 32 Bahrainis were injured in an Iranian drone attack on the island of Sitra, including four who were in critical condition, Bahrain’s state news agency said.

US orders diplomats out of Saudi Arabia

The US State Department has ordered non-essential US diplomats and US government employee family members to leave Saudi Arabia due to safety risks.

The decision was announced on Sunday night from Washington.

The United States began to pull out non-essential staff from Gulf Arab countries last Monday, three days into the war.

The US ​embassy in Riyadh last week was struck by Iranian drones that led to a fire that ​damaged the mission’s facilities.

The Iranian army said on Sunday that at least 104 people were killed and 32 were wounded in an attack by the United States on an Iranian warship off the coast of Sri Lanka last week.

The attack occurred on Wednesday when a U.S. submarine sank the Iranian frigate Dena in the Indian Ocean, about 19 nautical miles off Sri Lanka’s southern port city of Galle, Iranian state media and military sources said.

The incident killed dozens of sailors and marked a dramatic widening of Washington’s military campaign against the Iranian navy beyond the Middle East.

The United States confirmed last week that a U.S. submarine struck the Dena but gave no immediate casualty figures. Washington has characterised the action as part of its ongoing military response to Iranian operations across the region.

Sri Lankan authorities launched search and rescue operations after receiving a distress call from the vessel. Dozens of crew members were rescued by Sri Lankan naval forces, while others remain unaccounted for, according to previous Sri Lankan reports.

Relations between Iran and the United States have deteriorated sharply in recent weeks amid escalating strikes and counter‑strikes across the Middle East, with the naval engagement near Sri Lanka marking one of the most significant confrontations far from the Gulf.

Pakistan’s Defence Minister Khawaja Asif said on X on Sunday that responsible leadership must demonstrate wisdom and restraint in the current uncertain global situation.

“In the current uncertain global situation, responsible leadership should demonstrate wisdom and restraint. Peaceful coexistence and equality of sovereign states are indispensable for global stability,” he said.

Asif emphasised that adherence to the United Nations Charter is essential for global peace and stability.

“Pakistan will always continue its efforts to establish a just and rules-based international system,” he added.

He further stated that Pakistan will continue to support international principles with a clear stance and consistency, and with full confidence in national stability and capability.

Prime Minister Keir Starmer spoke with U.S. President Donald Trump ​on Sunday, less than a day after ‌Trump mounted his latest criticism of the British leader over a perceived lack of support for ​the U.S. campaign against Iran.

“The leaders ​began by discussing the latest situation in ⁠the Middle East and the military ​cooperation between the UK and US through ​the use of RAF (Royal Air Force) bases in support of the collective self-defence of partners in ​the region,” a spokeswoman from Starmer’s ​office said in a statement.

The statement did not reference ‌Trump’s ⁠most recent remarks, made in a post on Truth Social, in which he responded to news Britain may send an ​aircraft carrier ​to the ⁠region by saying, “We don’t need people that join Wars after ​we’ve already won!”

The spokeswoman from Starmer’s ​office ⁠added: “The Prime Minister also shared his heartfelt condolences with President Trump and the ⁠American ​people following the deaths of ​six U.S. soldiers.”

“They looked forward to speaking again soon.”

The United States and Israel are considering a joint special forces mission to Iran that would seize control of Tehran’s nuclear assets and remove enriched uranium, U.S. officials and congressional statements indicate.

The mission concept discussed by senior U.S. lawmakers and administration officials would involve elite military units and nuclear scientists, sources say, though no final decision has been made.

In a briefing to Congress this week, Republican Senator Marco Rubio was asked whether Iran’s stockpile of enriched uranium was secure. Rubio responded, “Some people will go there and bring it,” referring to the planned mission.

Trump administration officials have framed the initiative around three core questions: where Iran’s enriched uranium is located, how U.S. forces would access it, and how they would take possession of it, according to two U.S. officials familiar with internal deliberations who spoke on condition of anonymity because the matter is sensitive.

“We are looking at options for securing nuclear material that could pose a danger to regional and global security,” one official said, without elaborating on timing, forces involved or whether Israeli units would participate.

The proposal comes after a period of heightened tensions with Tehran, including a series of strikes that Washington has attributed to Iran or Iran‑aligned groups, and apparent failures to change the Iranian regime’s policies through pressure and military action.

Officials have stressed that no mission order has been issued. Allies and partners have been briefed on various contingency plans, they said.

Abu Dhabi on Sunday expressed serious reservations over recent statements by Israeli officials, rejecting claims that Iran had attacked the United Arab Emirates and accusing Israel of spreading false information.

A senior Israeli official reportedly said the remarks were intended to present Israel’s position, but Abu Dhabi dismissed this, saying such statements “cannot be helpful in peace efforts” and risk damaging bilateral relations.

Abu Dhabi emphasised its sovereignty, stating that it makes its own decisions and questioned Israel’s right to represent the UAE’s position. “Who are you to tell us our position?” the statement read. Officials also accused Israel of circulating rumours regarding the actions of a sovereign country.

The dispute follows reports alleging UAE involvement in an attack by Iran, which Abu Dhabi described as false. Israeli behaviour, the Emirati statement said, “can spoil relations,” highlighting tensions between the two countries over recent regional developments.

Iranian President Masoud Pezeshkian said on Sunday that his earlier remarks about Iran not attacking neighbouring countries had been misinterpreted, stressing that Tehran would defend itself forcefully if attacked from the region.

“The enemy misinterpreted my statement that Iran will not attack regional countries,” Pezeshkian said. “Let me make it clear that if attacked by a neighbouring country, we will defend ourselves vigorously.”

His comments came after U.S. President Donald Trump said Iran had effectively “surrendered” to its Middle Eastern neighbours following Pezeshkian’s earlier announcement that Tehran would halt strikes on nearby states unless attacks originated from their territory.

Pezeshkian had previously apologised to neighbouring countries affected by Iranian missile and drone attacks and said a leadership council had instructed the armed forces not to target regional states unless they were used to launch attacks against Iran.

The exchange comes amid an escalating regional conflict triggered by U.S. and Israeli strikes on Iran, with drone and missile attacks reported across parts of the Gulf and rising civilian casualties across the region.

President Asif Ali Zardari and Prime Minister Shehbaz Sharif expressed grief on Sunday over the death of two Pakistani nationals in Dubai, United Arab Emirates, caused by missile debris during the ongoing conflict in the region.

President conveyed his heartfelt condolences to the bereaved families and prayed for the highest levels of well-being for the deceased.

He said tensions in the Middle East pose a threat to global peace and stability and urged the international community to take immediate steps.

He warned that the ongoing tension in the region could engulf other countries and said the solution to conflicts lies in diplomacy and tolerance. Pakistan supports peace, tolerance and respect for international law in the region, he added.

In a post on X, PM said he was deeply saddened by the tragic deaths and extended sympathies to the affected family.

“Our diplomatic missions in the UAE are in close contact with the Dubai authorities to provide all necessary assistance and to facilitate the repatriation process,” he said.

“Our hearts go out to the bereaved family in this hour of grief,” the prime minister added.

The United States military said it could target locations in Iran where it believes drones and missiles are being launched, including areas near civilian populations, and warned that it cannot guarantee the safety of civilians near such sites, CENTCOM said on X.

“Iran’s terrorist regime is blatantly disregarding civilian lives by attacking Gulf partners while compromising the safety of their own people,” said Adm. Brad Cooper, commander of CENTCOM.

The United States told the Iranian people to stay in their homes and warned that even civilians near military installations could be targeted.

The U.S. military said it could not guarantee the safety of the Iranian people.

Significant progress has been reported in Iran in selecting a new Supreme Leader, with Iranian media reporting that a committee decided on Sunday. However, the name of the chosen figure has not yet been officially announced.

According to the Islamic Republic News Agency (ISNA), Mohsen Heydari, a member of the Assembly of Experts, said a majority of the body has agreed on a candidate considered the most suitable for the position.

Heydari represents Khuzestan Province and is involved in the selection process.

Another member of the Assembly, Mohammad Mehdi Mirbagheri, also confirmed in a video statement that a strong and clear decision had been made based on the views of most members.
The video was released by the Fars News Agency.

However, authorities have not disclosed who has been selected, nor have they announced when the decision will be made public.

The position is regarded as highly significant within Iran’s political and religious system.

The responsibility for electing the leader rests with the Assembly of Experts, an influential body composed of religious and political figures.