"Israel-US" strikes on Iran,Spreading toward Lebanonas-Oil price jump

Reuters reported on the Middle East's increasing conflicts following Tuesday's ongoing US-Israeli military attacks on Iran, which extended the conflict to Lebanon and caused oil prices to surge significantly. Four days after the attacks, US President Donald Trump told reporters that the US military had removed naval and air targets, claiming that "just about everything has been knocked out." This involves an Iranian drone strike on the US embassy in Saudi Arabia, which followed previous strikes in Kuwait.

The United States has closed its embassies in Lebanon and Dubai and ordered non-emergency government agencies to leave the region. Trump estimated that the attacks would endure four to five weeks. When asked who would be held accountable for the assaults on Iran, Trump stated simply that, based on his assessment, "Most of the people we had in mind are dead."

Debris lies scattered in the aftermath of a strike on a police station, amid the U.S.-Israeli conflict with Iran, in Tehran, Iran, March 4, 2026. Majid Asgaripour/WANA (West Asia News Agency) Photo:REUTERS

However, Tehran continues to be targeted, including strikes on Iranian official television outlets. (IRIB) According to Iranian news, an airstrike in Qom damaged the building that houses the Iranian Council of Experts, which is in charge of selecting a new leader to succeed Khamenei. Israel stated that it is investigating the impact of the attack.

Oil prices rise, and stock markets collapse.

The ongoing dispute caused global stock markets to fall along with energy volatility in the Middle East, which could lead to fresh inflation. Crude oil prices are up 5%, while wholesale natural gas prices in Europe have climbed by 40%. The American Automobile Association (AAA) announced that the average retail price of gasoline in the United States is $3.11 per gallon, indicating that consumer prices are growing. However, Iran's retaliatory actions, including missile and drone attacks on US bases and the closure of the Strait of Hormuz shipping lanes—a critical route for the world's five largest oil and natural gas shipments—have exacerbated the situation, as has Qatar, a major natural gas exporter, which has halted production.

While many oil ships have anchored in the Persian Gulf rather than risk the cost of chartering tankers to deliver oil from the Middle East to Asia, the cost has nearly doubled since last week, reaching a new high of more than $400,000 per day. Trump stated that the US government would offer insurance for tankers in the region, and that the Navy would escort them through the straits if required. Global transport by air has also been unpredictable, with Middle Eastern airports cutting links connecting Asia, Europe, and Africa. Meanwhile, Iran's partner Hezbollah attacked Israel, causing Israel to respond with air strikes and ground reinforcements in the south. Dozens have died, with Iran reporting 787 deaths from the attacks, including 165 girls killed on the first day of the fight, the greatest death toll among civilian targets.

SOURCE: Reuters