A joint US-Israeli attack on Iran has killed Supreme Leader Ayatollah Ali Khamenei and triggered retaliatory strikes across the region, escalating tensions and raising fears of a wider conflict.
Israeli strikes targeted Tehran, while Iran responded with drones and missiles aimed at Israel and sites around the Gulf. Gulf states have pledged to defend themselves against Iranian attacks, while a missile barrage in Jerusalem left seven people injured.
US President Donald Trump said in a video posted Sunday that the military operation in Iran, which he called “one of the most complex, most overwhelming military offensives the world has ever seen”, will continue until “all of our objectives” are achieved.
Residents fled southern Lebanon on Monday after Israel carried out multiple strikes and issued evacuation warnings to villagers. At least 31 people were killed in the Israeli attacks, as cited by AP.
The violence, which began on Saturday, has spread to more locations and increased the death toll. Governments around the world reacted with both support and condemnation, amid concerns about the impact on the global economy.
Several American fighter jets crashed in Kuwait
Several American fighter aircraft went down on Monday morning, the Ministry of Defence spokesperson said, adding that all crew members survived the incident.
Authorities immediately launched search and rescue operations. The crews were evacuated and taken to hospital for medical checks, and their condition is reported to be stable.
The spokesperson said coordination was carried out with U.S. forces regarding the circumstances of the incident, and joint technical measures were undertaken. Investigations are ongoing to determine the cause, with officials urging the public to rely on information from official sources.
Suspected drone strike sparks brief fire at Saudi Arabia’s oil refinery
A small fire broke out at Saudi Aramco’s Ras Tanura refining facility following what appeared to be a drone strike earlier in the morning, as cited by Reuters. The fire was later brought under control.
Israel and Hezbollah exchange strikes as ceasefire unravels
Air raid sirens sounded in northern Israel shortly after midnight on Monday. Hours later, explosions struck the outskirts of Beirut, marking a breach of a ceasefire that had largely held since November 2024.
The Israeli military said it began targeting Hezbollah positions in Lebanon after projectiles were launched into Israel. No injuries or damage were immediately reported. Israel issued evacuation orders for around 53 towns and villages in Lebanon, prompting hundreds of thousands of residents to flee their homes overnight.
It was the first such exchange since the truce between Israel and Lebanon formally ended hostilities with Hezbollah, according to Israel’s public broadcaster.
Hezbollah claimed responsibility, stating it was responding to repeated Israeli strikes and to avenge the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei. He was killed on Saturday in a strike on his compound in Tehran during the US-Israeli war against Iran.
Israel accused Hezbollah of operating on behalf of the Iranian regime. While Israeli forces have continued strikes in southern and eastern Lebanon since the ceasefire, areas near Beirut had rarely been targeted until now.
Stock market crashes amid Middle East tensions
Indian equity benchmarks fell sharply at the opening bell on Monday amid rising tensions in the Middle East and global market volatility, with crude oil prices and trade concerns weighing on sentiment.
The Nifty50 slipped below 24,900, while the BSE Sensex dropped more than 1,000 points in early trade. At 9:16 AM, the Nifty50 was at 24,866.00, down 313 points or 1.24%. The BSE Sensex stood at 80,226.63, down 1,061 points or 1.30%.
Analysts said sectors sensitive to crude prices, including oil marketing companies, paints, tyres, aviation and chemicals, could face margin pressure due to higher input costs.
Upstream oil producers such as ONGC and Oil India may benefit from improved realisations, while defence stocks including HAL and BEL could see positive sentiment.
Iran will not negotiate with US, says top security official
Iran’s top national security official, Ali Larijani, said Tehran “will not negotiate with the United States,” dismissing reports that it had sought to resume talks through intermediaries.
In a post on X, Larijani — secretary of the Supreme National Security Council and one of the country’s most senior figures, rejected media claims of outreach to Washington.
He also said Trump has “plunged the region into chaos with his ‘false hopes’ and is now worried about further casualties of American troops.”
Kuwait air defences intercept hostile aerial targets
Kuwait’s armed forces said early Monday that its air defence units intercepted several hostile aerial targets over the country.
In a statement, the military spokesperson said the Kuwaiti Air Defence Force “successfully intercepted a number of hostile aerial targets with efficiency and capability at dawn today.” The targets were detected and engaged within the central region as part of operations to protect national airspace. No casualties were reported.
The spokesperson added that the armed forces remain on full alert and will continue to address any developments to ensure the country’s security and stability.
Got him before he got me, says Donald Trump
Confirming the death of Khamenei Trump said, “I got him before he got me. They tried twice, I got him first.”
He said that over the past 36 hours, the United States and its partners had launched Operation Epic Fury, which he described as one of the largest and most complex military offensives ever carried out.
According to Trump, US forces struck hundreds of targets across Iran, including Revolutionary Guard facilities and air defence systems. He added that nine ships and a naval building were destroyed “in a matter of literally minutes.”
Abu Dhabi, Dubai stock markets to remain shut
The Abu Dhabi and Dubai stock markets will remain closed on Monday, March 2, and Tuesday, March 3, amid rising tensions in the Middle East, according to Gulf News.
The Capital Market Authority (CMA) announced that both the Abu Dhabi Securities Exchange and the Dubai Financial Market will suspend trading on these dates. The decision was made in line with the authority’s regulatory and supervisory mandate and applicable laws.
The CMA said it will continue to monitor regional developments, assess the situation, and take further measures as needed. It also urged stakeholders to follow official communication channels of the CMA, Abu Dhabi Securities Exchange, and Dubai Financial Market for updates.
Travel disruptions hit the region
Escalating hostilities in the Middle East have disrupted air travel across the region, leaving governments scrambling to evacuate stranded citizens.
Dubai International Airport, one of the world’s busiest, suffered damage from missile strikes, and blasts have also been reported in Abu Dhabi and Doha. Large sections of Middle Eastern airspace were closed over the weekend, with neighboring countries restricting flights.
The impact has extended beyond the region, as foreign governments coordinate the repatriation of their nationals. Air travel remains heavily disrupted across West Asia, from the UAE to Israel. By Sunday evening, around 1,600 flights were cancelled by regional carriers including Emirates, Etihad, and Qatar Airways. Airlines such as IndiGo, Air India, and Akasa reported 350 flight cancellations during the day.
Most airlines have already announced cancellations extending into Monday, with resumption dependent on assessments of safety in the conflict zone.
Britain's Royal Air Force in Cyprus hit by suspected drone strike
Britain’s Royal Air Force base at Akrotiri in Cyprus was hit by a suspected drone strike overnight, causing limited damage but no casualties, Cypriot authorities and the UK ministry of defence said.
A Cyprus government spokesperson confirmed that “information received through various channels indicates that it involved an unmanned drone, which caused limited damage," as cited by Reuters. Residents near the base were advised to shelter in place following the suspected impact, according to a security alert from the British bases administration.
The UK retains sovereignty over two military bases on Cyprus, an EU member state. RAF Akrotiri, located on a large peninsula at the island’s southern tip, was last directly attacked by Libyan militants in the mid-1980s.