People demonstrate in front of the Westwood Federal Building in the Westwood neighborhood of Los Angeles on June 22, 2025. Protest against US and Israeli attacks on Iran, ICE raids on immigrants, and support for Palestinians.
Bingguan | AFP | Getty Images
The U.S.-Israel conflict with Iran has extended into a third day, with both sides emphasizing sharper responses in coming days and deepening fears of a broader war that could shake the global economy.
where things stand
The United States and Israel launched a major offensive against Iran on Saturday, killing the Islamic State’s supreme leader Ayatollah Khamenei and provoking retaliatory attacks by the Iranian government.
The Iranian government is counterattacking Israel and Gulf states with U.S. military bases, including the United Arab Emirates, Qatar, Kuwait, and Saudi Arabia, with missiles and drones.
Civilian infrastructure in Dubai, including the luxury Fairmont The Palm hotel and Dubai International Airport, was also hit by Iran’s retaliatory attacks.
The death of Ayatollah Ali Khamenei, who ruled Iran for more than 30 years and held supreme power, has raised questions about who will run the country next, as he had not publicly named a successor. The council, made up of Iran’s President Massoud Pezeshkian, the attorney general and members of the Guardian Council, temporarily assumed leadership duties on Sunday.
According to Iranian state media, the airstrike killed more than 200 people in Iran.
The U.S. military announced Sunday that three U.S. service members were killed and five more seriously injured.
Market reaction so far
Oil prices soared on Monday morning as traders assessed the risk of a prolonged conflict and major oil supply disruptions.
U.S. crude rose more than 8%, or $5.55, to $72.57 a barrel, while global benchmark Brent crude rose about 9%, or $6.54, to $79.41, before moving higher in pairs.
WTI crude oil (April 26)
precious metal gold and silver Stocks rose about 2% as investors flocked to safe assets amid a global risk-off mood.
of us dollar index The stock rose 0.26% to 97.863 as of 11:20 p.m. ET. The yield on the 10-year U.S. Treasury was little changed at 3.97% on Monday, dropping to an 11-month low of 3.926% on Friday before rebounding slightly.
Risk assets are in retreat. Dow Jones Industrial Average futures fell 521 points, or 1%. S&P 500 futures fell 1%, and Nasdaq 100 futures also fell more than 1%.
Japan’s Nikkei Stock Average fell 1.2%, and the TOPIX fell 1.34%. Hong Kong’s Hang Seng index opened 1.15% lower, while mainland China’s CSI300 index opened 0.25% lower. Australia’s S&P/ASX 200 fell 0.48%.
Easing tension or spiraling?
US President Donald Trump has warned that more US military casualties are possible as the operation unfolds. President Trump told the Daily Mail on Sunday that the conflict with Iran could last for the next four weeks.
“It’s always been a four-week process. We thought it would take about four weeks. It used to be a four-week process, so no matter how strong a country is, it will take four weeks or less,” Trump was quoted as saying by a British newspaper.
Separately, President Trump said in an interview with The Atlantic that Iran’s new leadership wants to restart negotiations and that he has agreed to talk with Iran’s new leadership.
“They wanted a dialogue, and I agreed to a dialogue, so I’m going to have a dialogue with them. They should have done it sooner. They should have offered something very practical and easy to do sooner. They’ve waited too long,” Trump said, without specifying when the talks would take place.
However, Iranian Security Chief Ali Larijani said Iran had no plans to hold talks with the Trump administration and ruled out restarting negotiations.
“We will not negotiate with the US,” a former adviser to the late supreme leader said in a post on X.
The US airstrikes have sparked debate over their legal basis, as under the Constitution only Congress has the right to declare war.
“There is no legitimate legal justification for the US attack on Iran,” said Brian Finucane, senior adviser at the Brussels-based think tank International Crisis Group.
He said Congress has not authorized military action and the president has not taken any action to repel a sudden attack on the United States.
Finucane added: “Even by the standards of unilateral executive military action in recent decades, President Trump’s unauthorized attack on Iran stands out for its scale and potential impact, including on US forces in the region.”
U.S. lawmakers have also expressed concern about the possibility of a prolonged and costly war in the Middle East.
“There are no simple answers to what happens next,” Sen. Tom Cotton of Arkansas, the Republican chairman of the Senate Intelligence Committee, said on CBS News’ “Face the Nation.”
“It’s no secret that this administration has no plan for the current turmoil in the Middle East,” said Sen. Chris Murphy, D-Connecticut.
worldwide reaction
The attacks on Iran and Tehran’s retaliation have prompted world leaders to assess their impact, with Western leaders largely supporting Trump, while China and Russia have targeted the United States and Israel with military operations.
China: In a telephone conversation with his Russian counterpart, Chinese Foreign Minister Wang Yi said, “It is unacceptable for the United States and Israel to launch an attack against Iran. It is even more unacceptable for them to blatantly assassinate the leader of a sovereign state and incite regime change.” Wang reiterated his call for an “immediate ceasefire” and “return to dialogue and negotiations as soon as possible.”
Russia: President Vladimir Putin reportedly expressed his condolences over Khamanei’s death, calling the act a “murder in cynical violation of all norms of humanitarian morality and international law.” Russia’s Foreign Ministry called for an “immediate return to the political and diplomatic orbit” in a statement on Saturday.
Gulf States: States allied with the United States took a defiant stance, vowing in a joint statement to “stand united in the defense of our people, sovereignty, and territory and reaffirm our right to self-defense in the face of these attacks.”
European Union: EU Commission President Ursula von der Leyen appears to support President Trump’s push for regime change in Iran, calling for a “credible transition” that can restore stability and reflect “the democratic aspirations of the brave Iranian people.”
UK: The UK government said it was not participating in the strike and “does not want further escalation into a wider regional conflict”. However, Prime Minister Keir Starmer said London had agreed for the US to use the military base for “defensive” attacks on Iranian missile sites.
Australia: Prime Minister Anthony Albanese has stressed that Iran has been a “destabilizing force” for decades. “I support the United States in acting to prevent Iran from acquiring a nuclear weapon and to prevent it from continuing to threaten international peace and security,” he said in a statement.
Canada: Prime Minister Mark Carney also supported the US action. “Canada supports U.S. action to prevent Iran from acquiring nuclear weapons and to prevent the Iranian regime from further threatening international peace and security,” Secretary Carney said in a statement.
