Iran War Highlights (March 4): Israel, US have made 'historic gains' in war, says Netanyahu's office

The Israeli military said its Home Front Command would ease some war-related restrictions effective midday Thursday, allowing limited activity and permitting public gatherings of up to 50 people.

The latest measures would be applicable until 1800 GMT on March 7.

"As part of the changes, all areas of the country will transition from an essential activity level to a limited activity level," the military announced, soon after it had said the number of missiles fired by Iran towards Israel had declined. Read more

An air strike hit the Hezbollah stronghold of south Beirut early Thursday, AFPTV images showed, shortly after Israel issued a warning ahead of an attack.

Israel's military earlier told residents to leave a Beirut suburb, warning it was about to strike targets it said were linked to Hezbollah.

A powerful explosion shook Tehran on Wednesday night, AFP journalists said, while state media reported multiple blasts in the west of the capital.

Iranian media also reported explosions in several other cities, including the southern port of Bandar Abbas on the Gulf and Tabriz in the northwest.

The Israeli military said Wednesday that its strikes on Iran's missile launchers had led to a daily decline in the number of missiles the Islamic republic was firing at Israel.

"We've neutralised around 300 ballistic missile launchers. We believe our operations against those missile launchers and against those stockpiles are an integral part of the fact that we're seeing the amounts of missiles fired every day diminish," military spokesman Lieutenant Colonel Nadav Shoshani told journalists.

The Spanish foreign minister on Wednesday denied that Madrid had dropped its opposition to Washington's use of its bases against Iran, after the White House said Spain agreed to "cooperate with the US military".

"I categorically deny any change... our position on the use of the bases, on the war in the Middle East, on the bombardment of Iran, has not changed at all," Jose Manuel Albares told Cadena SER radio.

President Donald Trump is "actively considering" a US role in Iran after the American-Israeli operation against the country concludes, the White House said Wednesday.

"I think it's something the president is actively considering and discussing with his advisors and his national security team," Press Secretary Karoline Leavitt said of any post-war US role.

Spain has agreed to "cooperate" with the US military in its war on Iran, the White House said Wednesday, after Madrid had refused to let American warplanes use its bases for the operation.

"It's my understanding, over the past several hours, they've agreed to cooperate with the US military," Press Secretary Karoline Leavitt said of Spain, without providing details on what the cooperation would entail.

The Israeli military announced it had launched a new wave of strikes in Tehran on Wednesday, saying they were targeting military infrastructure belonging to the "Iranian regime".

"The IDF has begun an additional wave of strikes targeting military infrastructure belonging to the Iranian regime across Tehran," the military said in a statement.

US Secretary of State Marco Rubio said Wednesday that attacks on NATO ally Turkey's sovereignty were "unacceptable" after the alliance shot down an Iranian missile, which a Turkish official said had veered off course.

In a call with Foreign Minister Hakan Fidan, Rubio said "that attacks on Turkey's sovereign territory were unacceptable and pledged full support from the United States," State Department spokesman Tommy Pigott said.

The Israeli military said it struck several Hezbollah targets across Lebanon on Wednesday, including rocket and missile launch sites south of the Litani river.

"Among the targets struck were numerous Hezbollah rocket and missile launch sites south of the Litani River... including a drone production facility," the military said, hours after issuing an evacuation order for residents living in the targeted area.

Israel's military issued new evacuation orders for a Beirut suburb on Thursday, warning residents it was about to strike targets it said were linked to Hezbollah.

The warning posted on social media by the Israeli military's Arabic language spokesperson came as hostilities between Israel and the Iran-backed group intensified -- including direct clashes in the southern Lebanese town of Khiam on Wednesday, according to Hezbollah.

Saudi Arabia said Thursday it had intercepted three cruise missiles, as the US-Israel-Iran war continued.

"Three cruise missiles were intercepted and destroyed outside the city of Al-Kharj," the Saudi defence ministry posted on X.

Israel and the United States have made "historic gains" in the war against Iran, which began when the allies launched strikes on the Islamic republic, Israeli Prime Minister Benjamin's Netanyahu's office said Thursday.

Iran's regime is being "absolutely crushed" by the US-Israeli war against the Islamic republic, the White House said Wednesday.

"Under the leadership of President Donald J. Trump, the rogue Iranian terrorist regime is being absolutely crushed," White House Press Secretary Karoline Leavitt told a news conference.

Two drones were shot down on Wednesday evening near Baghdad's international airport, hours after a similar attack on the facility, two security sources told AFP.

"Two drones were downed near Baghdad airport, with no casualties or material damage reported," an Iraqi security source said. Another security source in Baghdad confirmed the incident.

The airport includes a military base that hosts a US diplomatic facility and previously housed US-led coalition troops.

New explosions were heard Wednesday evening in Erbil, the capital of Iraq's northern Kurdistan region, AFP journalists said.

Loud bangs were mostly heard near Erbil airport, which hosts US-led coalition troops, an AFP journalist said.

Since the start of the war in the Middle East, drones have repeatedly been intercepted over Erbil, which is also home to a major US consulate complex.

Iraq's electricity ministry said on Wednesday that the entire country had been affected by a total power outage, without identifying the cause.

"The power grid has completely shut down across all Iraqi provinces," the ministry said, according to the Iraqi News Agency (INA).

It added that it was looking to determine the cause of the blackout, and had begun restoring power stations and transmission lines. Parts of the country have come under repeated attack since the war between Israel, the US and Iran broke out.

Israel said Wednesday it had struck a major Iranian military compound in Tehran housing command centres of the Revolutionary Guards, the elite Quds Force and the Basij paramilitary force.

"A short while ago, the Israeli Air Force, precisely guided by IDF (military) intelligence, completed a wide-scale strike targeting a large... military compound in eastern Tehran" that contained "headquarters of all of the Iranian security organisations", the Israeli military said in a statement.

Other Iranian security agencies at the compound included Iran's intelligence directorate, internal security forces and Iran's cyber warfare unit, the military said.

Iran's armed forces threatened on Wednesday to target Israeli missions worldwide if Israel were to attack Tehran's mission in Lebanon, a military spokesman said.

Abolfazl Shekarchi, the spokesman of the Iranian armed forces, said live on television that "if Israel commits such a crime, it will force us to make all Israeli embassies around the world our legitimate target".

On Tuesday, Avichay Adraee, an Arabic-language spokesman for the Israeli military, said it "warns representatives of the Iranian terror regime who are still in Lebanon to leave immediately before being targeted", giving them 24 hours to leave.

Danish shipping giant Maersk said Wednesday that it was suspending bookings in the Gulf "until further notice" following a risk assessment of the evolving situation there, as the Middle East conflict spreads.

"We are temporarily suspending cargo booking acceptance in and out of UAE, Oman (all ports apart from Salalah), Iraq, Kuwait, Qatar, Bahrain, Saudi Arabia (Dammam and Jubail only) until further notice. This is with immediate notice. Exceptions will be made for critical foodstuff, medicine and other essential goods," Maersk said in a statement.

The company added that the measure does not apply to Jordan and Lebanon. Two of its vessels are currently in the Gulf.

Iran's security chief Ali Larijani said Wednesday that US President Donald Trump had dragged the American people into "an unfair war" with Iran.

"Mr. Trump, with Netanyahu's clownish antics, dragged the American people into an unfair war with Iran," Larijani posted on X.

According to Al Arabiya, an Israeli airstrike has hit a building in the Haret Hreik neighbourhood of southern Beirut.

Oil tanker traffic in the Strait of Hormuz has plunged by 90 percent since the outbreak of US-Israeli attacks on Iran, the energy market intelligence firm Kpler said Wednesday on X.

Iranian military officials have said they have completely choked off traffic though the waterway that a fifth of the world's crude oil supplies transit, but Kpler said some are risking the trip.

"Unlike several other vessel segments where movements have largely ceased, some tankers are still travelling east and west through the strait, with a number of voyages occurring under AIS blackouts," said Kpler Principal Freight Analyst Matt Wright, referring to the marine traffic tracking system.-- AFP

The U.S. military has killed an Iranian official who headed a unit behind an alleged assassination plot against President Donald Trump, the Pentagon announced on Wednesday.

The announcement of the unnamed Iranian official's killing came during an operational update to the four-day-old war with Iran at the Pentagon.

U.S. Defense Secretary Pete Hegseth touted the killing, which he said took place on Tuesday, even as he stressed the Iranian official was not the initial focus of the war.

"The leader of the unit who attempted to assassinate President Trump has been hunted down and killed. Iran tried to kill President Trump and President Trump got the last laugh," Hegseth told reporters. -- Reuters

Sri Lanka's navy has recovered 87 bodies of sailors from an Iranian warship that was sunk on Wednesday by a US submarine off the island's southern coast, police and defence officials said.

"We have collected 87 bodies, and a search is still on for the others who are still missing," a navy official told AFP on condition of anonymity.

Police and navy spokesmen said 61 sailors were still missing. Some 32 have been rescued and are being treated at a hospital in the city of Galle, according to officials. -- AFP

At least 80 were people killed in a U.S. submarine strike on an Iranian warship in the Indian Ocean, Sri Lanka's deputy foreign minister told local television on Wednesday. -- Reuters

The U.S. military carried out a strike that sank an Iranian warship off Sri Lanka's coast and triggered a rescue for dozens of Iranian sailors by Sri Lanka's navy, three U.S. officials told Reuters on Wednesday.

One of the officials, who spoke on condition of anonymity due to the sensitivity of the issue, said the strike was carried out by a U.S. military submarine.

The U.S. strike triggered a distress call and the Sri Lankan armed forces launched a search and rescue operation. Sri Lankan authorities said they had rescued 32 people so far and recovered several bodies from the sea.  -- Reuters

Iran's Revolutionary Guard says it is prepared for the “complete destruction of the region’s military and economic infrastructure.” The statement came via Iranian state television.

“The continued mischief and deception by the United States in the region will come at the cost of the complete destruction of the region’s military and economic infrastructure,” it says.

It alleges, without offering evidence, that the U.S. military was using “civilian facilities ... as cover.”

NATO air and missile defence systems stationed in the eastern Mediterranean destroyed a ballistic missile fired from Iran as it headed into Turkish airspace after passing Syria and Iraq, the Turkish Defence Ministry said on Wednesday.

The incident marks the first time that NATO member Turkey, Iran's neighbour to the northwest, has been drawn into the expanding conflict between Iran and the U.S. and Israel that now involves several countries in the region.

"We warn all parties to refrain from actions that would lead to further escalation of conflict in the region. In this context, we will continue to consult with NATO and our other allies," the ministry said, adding there were no casualties or injuries.  -- Reuters

Iran has reportedly decided to permit only Chinese vessels to pass through the Strait of Hormuz, in what sources describe as a gesture of appreciation for Beijing’s position toward Tehran since the Middle East conflict began, according to media reports.

The move is significant because the Strait of Hormuz, which connects Persian Gulf ports to the open sea, is one of the world’s most critical maritime chokepoints. Iran has blocked access through the passage since hostilities in the region escalated, raising concerns over global oil shipments and supply chains.

Iran state funeral for Ayatollah Khamenei planned for Wednesday evening 'postponed': state TV -- AFP

The European Commission said it was "ready" to defend EU interests after President Donald Trump threatened to sever trade with Spain for refusing to allow US use of its bases to attack Iran.

"We stand in full solidarity with all member states and all its citizens and, through our common trade policy, stand ready to act if necessary to safeguard EU interests," said commission spokesman Olof Gill in a statement issued in response to Trump's threats. -- AFP

At least 101 people were missing and 78 wounded after a submarine attack on an Iranian ship off Sri Lanka's coast, sources in Sri Lanka's navy and defence ministry told Reuters on Wednesday. -- Reuters

According to the Israel Defense Forces, an Israeli Air Force F-35I "Adir" stealth fighter intercepted and destroyed a Russian-made Iranian Yak-130 combat trainer/light attack aircraft in the skies above Tehran as part of ongoing military operations.

France has deployed Rafale fighter jets over the skies of the United Arab Emirates to protect its military bases there, Foreign Minister Jean-Noël Barrot said on Tuesday. The jets carried out airspace security operations over French installations in the UAE, Barrot told BFMTV. He did not provide further details about the nature of the missions or whether the aircraft were involved in intercepting drones or missiles that could pose a threat to the bases.

The advisory remains at Level 4 - Do Not Travel, reflecting the high security risks across Pakistan.

US diplomatic missions have limited capacity to assist dual US-Pakistani nationals who are arrested or detained, as Pakistani law treats them solely as Pakistani citizens.

The Pakistani government restricts travel by US personnel within the country. US government employees are required to use armed escorts and armored vehicles in certain areas and must obtain special authorization to travel outside Islamabad, Lahore and Karachi. The US government has limited ability to provide consular services in Khyber Pakhtunkhwa, Balochistan, Pakistan-administered Azad Kashmir and most areas beyond the three major cities. Additional movement restrictions can be imposed at short notice, and US personnel are generally barred from attending large gatherings, including political rallies and religious events.

Pakistan's security environment remains fluid and can change without notice. While major cities have comparatively greater security infrastructure and faster emergency response capabilities, crimes such as pickpocketing, bag-snatching and mobile phone theft are frequently reported.

Local laws prohibit protests and demonstrations without a permit. Being near protests can attract scrutiny from Pakistani security forces, and US citizens have previously been detained for participating in such gatherings. Individuals may also face detention for social media posts perceived as critical of the Pakistani government, military or officials. Internet and mobile service disruptions are common, particularly during protests.

US authorities have warned of the continued risk of terrorist violence in Pakistan. Violent extremist groups have carried out attacks, particularly in Balochistan and Khyber Pakhtunkhwa, including the former FATA region. However, major cities such as Karachi and Islamabad have also witnessed incidents. Potential targets include transportation hubs, hotels, markets, shopping malls, military and security installations, airports, trains, schools, hospitals, places of worship, tourist sites and government buildings. Attacks may occur without warning.

As per an advisory dated March 3, since hostilities began between the United States and Iran on February 28, there has been an ongoing threat of drone and missile attacks, along with significant disruptions to commercial flight operations in the region.

The United States Department of State has ordered the departure of non-emergency US government employees and family members from US Consulates in Lahore and Karachi due to safety concerns. There is no change in the operational status of the US Embassy in Islamabad.

The United States military says it has struck nearly 2,000 targets in Iran since launching its joint bombing campaign with Israel, while Iran has fired more than 500 ballistic missiles and over 2,000 drones in response.

In a video statement, Admiral Brad Cooper, commander of United States Central Command, said the first 24 hours of the joint operation were nearly double the scale of the "shock and awe" strikes that marked the start of the US-led Iraq War. He described the deployment - involving more than 50,000 troops, 200 fighter jets, two aircraft carriers and bombers - as the largest US military build-up in the Middle East in a generation.

Cooper said American forces had destroyed 17 Iranian ships, effectively sinking the country's navy. He added that the current focus of operations is on "shooting all the things that can shoot at us," signalling a shift toward neutralising Iran's remaining offensive capabilities.

Israel has warned that any successor chosen by Iran's ruling clerics will be considered a legitimate target, as senior Iranian officials meet to appoint a new Supreme Leader following the death of Ayatollah Ali Khamenei.

Israeli Defense Minister Israel Katz said any leader appointed by what he described as the "Iranian terrorist regime" would be "an unequivocal target for elimination." He added that the prime minister and he had instructed the Israel Defense Forces to prepare and act by all means necessary as part of the objectives of Operation "Lion's Roar."

An elected body of senior clerics has been meeting virtually to select a new Supreme Leader after Khamenei was killed in the initial US-Israel strikes on Saturday. He had not officially named a successor before his death.

Artificial intelligence models developed by Anthropic are being used to support US military operations in Iran, a source familiar with the matter told CNBC. The disclosure comes even after the company was blacklisted by the Trump administration, with the source noting the details are confidential. (Read More)

The recent joint US–Israeli strikes on Iran were carried out during what Israeli officials described as an “operational opportunity” that emerged only after Prime Minister Narendra Modi concluded his visit to Tel Aviv, according to Indian Express. Israel’s Ambassador to India, Reuven Azar, told IE that there was no prior indication during PM Modi’s visit that military action against Tehran was imminent. “It was an operational opportunity that came up only after Prime Minister Narendra Modi left. During the conversations with him, we discussed regional developments, but we could not have shared something we did not yet know,” he said. (Read More)

As strikes continue across the Middle East, several countries are organising repatriation flights to bring their citizens home. According to BBC News, Slovak nationals were flown back to Bratislava from Jordan on special flights arranged by the Slovak government. Speaking to Reuters, 53-year-old Zuzana recalled sirens "going off there every now and then" and said missiles were "just flying over us", adding that they even saw some being intercepted. Another returnee, 23-year-old Anton, said air raid warnings "started to get more intense". "I did not even see the rockets, it was terrifying and I cannot imagine experiencing it on a daily basis," he said.

Israel will start to gradually reopen its airspace overnight between Wednesday and Thursday after closing it to civilian flights earlier in the week amid strikes on Iran, officials said. The initial flights cleared to operate will focus on repatriating Israeli citizens, with departures set to resume cautiously as security conditions allow.

The benchmark equity indices Sensex and Nifty traded lower on Wednesday amid rising inflation fears due to tensions in the West Asia. At around 9:30 am, the Sensex was down 1,730.03 points or 2.16 percent to 78,508.82, while Nifty declined to 24,345.10, down 520.60 points or 2.09 percent. (Read More)

The Indian rupee breached a new record low on March 4, when it crossed the Rs 92 per dollar mark, as oil prices soared amid geopolitical tensions in the Middle East and investors scrambled toward safe-haven assets. The local currency was trading at Rs 92.17 to the dollar, as compared to Rs 91.40 in the previous trading session. The currency and fixed income markets were closed on March 3 due to a public holiday. (Read More)

India has established a dedicated control room in the Ministry of External Affairs in view of the evolving situation in West Asia and the Gulf region. The facility will operate daily from 9 am to 9 pm to assist Indian nationals.

The control room can be reached at:

•             1800118797 (Toll Free)

•             +91 11 2301 2113

•             +91 11 2301 4104

•             +91 11 2301 7905

The government has also shared emergency contact numbers for Indian embassies across the region:

•             Bahrain: +973 39418071

•             Iran: +98 9128109115 / +98 912810910 / +98 932179359

•             Iraq: +964 771 651 1185 / +964 770444 4899

•             Israel: +972 54 7520711 / +972 54 2428378

•             Jordan: +962 770 422 276

•             Kuwait: +965 65501946

•             Lebanon: +961 76860128

•             Oman: +968 98282270 (WhatsApp) / 80071234 (Toll free)

•             Qatar: +974 55647502

•             Ramallah, Palestine: +970 592916418

•             Saudi Arabia (Riyadh): +966 11 4884697 / 800 247 1234 (Toll free)

•             Saudi Arabia (Jeddah): +966 126648660 / +966 12 2614093

•             United Arab Emirates: +971 543090571 (WhatsApp) / 800 46342 (Toll free)

Authorities said the measure has been taken to provide timely assistance and support to Indian citizens in the region.

An LNG tanker originally headed for Europe has changed course and is now sailing toward Asia after a sharp rise in global natural gas prices, according to shipping data from analytics firm Kpler. Kpler said this is the first recorded instance of a cargo switching its destination from Europe to Asia in response to the recent price surge, highlighting the intensifying competition between the two regions for liquefied natural gas supplies.

Saudi Aramco is exploring the option of delivering more cargoes to Yanbu, a port on the Red Sea that’s situated outside the Persian Gulf, where dozens of ships are hunkered down as the Strait of Hormuz remains effectively closed. Aramco typically exports the bulk of its crude from ports within the Gulf, but conflict in the Middle East has led to a logjam of vessels. The world’s biggest oil exporter has a 5 million barrel-a-day pipeline that runs across the country which can transport oil from fields in the east to the Red Sea in the west. Aramco did not immediately respond to a request for comment. - Bloomberg

Thailand has appealed to the public to avoid panic buying fuel as long queues formed at petrol stations amid concerns over the expanding conflict involving the US, Israel and Iran.

Authorities have also directed government offices to cut down on energy consumption as a precautionary step. On Tuesday, lengthy lines of vehicles were seen at fuel stations, driven by fears that escalating tensions in the Middle East could disrupt shipping routes and push prices higher.

In a statement, the country's energy ministry urged public cooperation, asking residents not to hoard fuel and assuring that current supplies are adequate to meet demand.

The United Kingdom Maritime Trade Operations (UKMTO) said it received a report of an "unknown projectile" striking a commercial ship off the coast of Fujairah in the United Arab Emirates. According to the UKMTO, the impact damaged the vessel's steel plating, but there was no fire or water ingress. The organisation, which is led by the Royal Navy and coordinates maritime security between merchant vessels and military forces, said the crew are safe and that authorities are investigating the incident.

At least 50 people have been killed in Israeli strikes across Lebanon over the past two days, according to the country's Lebanon Ministry of Health. The ministry said in a statement that at least 335 others have been injured during the same period. Israeli bombardment persisted into Wednesday morning. An airstrike in Aramoun, located south of Beirut, killed at least six people and wounded eight in the early hours, the ministry reported.

Gujarat Gas Limited has reduced the daily contract quantity for industrial customers by 50% from March 6 to March 31, according to sources cited by CNBC-TV18. Sources told CNBC-TV18 that the company has urged industrial units to limit their gas consumption during this period. They added that any usage beyond the revised allocation could result in the immediate suspension of gas supply. Separately, the government has said the country remains adequately stocked with crude oil and key petroleum product inventories to manage any short-term supply disruptions, CNBC-TV18 reported.

Maritime movement through the strategically vital Strait of Hormuz has slowed dramatically amid the ongoing war in Iran. According to data from S&P Global Commodities at Sea shared with CNN, just two oil and chemical tankers navigated the waterway on Monday.

This marks a decline from Sunday, when five such vessels transited the strait shortly after hostilities began over the weekend.

Under normal conditions, roughly 60 oil and chemical tankers pass through the Strait of Hormuz each day, transporting nearly one-fifth of the world's daily oil supply.

France is dispatching its flagship aircraft carrier to the Mediterranean Sea as tensions escalate in the Middle East, President Emmanuel Macron announced. The carrier, Charles de Gaulle, has been redirected from its mission in the North Atlantic and will now head toward the eastern Mediterranean. The warship had made a port call in Malmö last week before the change in deployment.

Qatar announced shortly after midnight on Wednesday that it had dismantled two espionage cells allegedly linked to Iran's Islamic Revolutionary Guard Corps. The Gulf nation, which hosts a major US military base and has faced multiple Iranian strikes since the outbreak of the war, said ten suspects were arrested. According to the country's official press agency, the detainees admitted during questioning that they had ties to the Revolutionary Guards and were instructed to carry out espionage and sabotage operations.

A loud blast was heard in Beirut, Lebanon's capital, shortly after midnight on Wednesday as fighting intensified between Hezbollah and Israel, according to reports. The explosion came amid a fresh round of strikes and rocket exchanges between the Iran-backed militia and Israeli forces.

The renewed hostilities began earlier in the week when Hezbollah launched rockets and drones toward northern Israel in response to broader regional conflict linked to recent attacks by Israel and the United States on Iran. Israel has since carried out multiple airstrikes in and around Beirut, particularly targeting areas associated with Hezbollah's presence.

Explosions have been reported across parts of the Lebanese capital as Israel's military escalates operations against the group, raising fears of a further widening of the conflict into Lebanon.

More than 1,000 people have lost their lives in Iran since the conflict began on Saturday, according to the US-based Human Rights Activists News Agency (HRANA). As of Tuesday afternoon Eastern Time, the organisation reported that at least 1,097 civilians had been killed, including 181 children. It also said more than 5,400 civilians - among them 100 children - have been wounded. HRANA described the figures as preliminary, noting that it is still working to verify hundreds of additional reported deaths.

Gold prices moved higher after dropping more than 4% in the previous session, as investors balanced the impact of a firmer US dollar against increased demand for safe-haven assets amid escalating conflict in the Middle East. Bullion climbed above $5,100 an ounce, with bargain hunters stepping in after a four-day rally ended on Tuesday. Meanwhile, a measure of the dollar has gained 1.4% this week and bond yields have also risen. Traders have reduced expectations for monetary easing, citing inflationary pressures driven by soaring energy costs. A widespread decline in global equities also prompted some investors to sell gold holdings on Tuesday to cover margin calls elsewhere in their portfolios.

Nvidia has temporarily closed its Dubai office, CEO Jensen Huang said in a company-wide email reported by CNBC. He noted that the company's crisis management team is working continuously to assist employees in the Middle East and their immediate families who have been directly affected by the US conflict with Iran.

Huang added that, as of early Tuesday, all Nvidia staff based in or traveling across the region were safe.

In 2019, Nvidia acquired Israeli networking firm Mellanox for about $7.13 billion. The deal significantly expanded the company's footprint in Israel, which now hosts Nvidia's largest research and development hub outside the United States, employing roughly 6,000 people.

Oil prices extended their rally as renewed attacks in the Middle East heightened concerns over supply disruptions. Traders also assessed a US proposal to insure and potentially escort tankers moving through the Strait of Hormuz, where shipping activity has nearly come to a standstill.

West Texas Intermediate surged above $75 a barrel after jumping 11% over two sessions - its largest two-day gain in four years, a Bloomberg report said today. Brent crude settled close to $81. President Donald Trump said the US International Development Finance Corporation would provide insurance coverage for vessels to help safeguard energy shipments and other trade, adding that naval escorts would be deployed if required.

The US initiative comes amid growing signs of production setbacks across the region following the effective closure of the key maritime route. Iraq, OPEC's second-largest producer, has started shutting down operations at the Rumaila oil field - its largest - as well as the West Qurna 2 project, according to sources familiar with the situation. Once fully implemented, the suspensions are expected to halt most of the country's oil output.

Authorities in Dubai have confirmed that a blaze caused by a drone-related incident near the US Consulate has been brought under control. Emergency response teams were deployed swiftly to manage the situation. In a statement posted on X, the Dubai Media Office said no injuries were reported in connection with the incident.

A CIA station operating within the US Embassy in Saudi Arabia was reportedly hit in a drone strike on Monday, according to US media outlets.

Both Washington and Riyadh confirmed that two drones struck the embassy compound in the Saudi capital, Riyadh. However, it remains unclear whether the intelligence facility was the intended target of the attack, Reuters reported.

A State Department alert obtained by The Washington Post said part of the embassy's roof collapsed due to the strike, and smoke spread inside the building, contaminating interior areas. The alert also noted that the compound suffered structural damage and instructed staff to remain sheltered in place.

Saudi Arabia has said it is prepared to respond to any attacks launched by Iran.

According to the state-run Saudi Press Agency, the kingdom will take all necessary steps to safeguard its national security and ensure the protection of residents.

In a cabinet statement, Saudi authorities also stressed their "readiness to mobilise all capabilities" to support allied nations in countering any potential threats or aggression from Iran.

Observers describe Mojtaba as holding more hard-line views than his father and having long been influential behind the scenes within Iran's political and security circles, though his elevation marks a highly controversial succession given Iran's historical resistance to hereditary transfer of power.

Mojtaba Khamenei, the son of the late Ayatollah Ali Khamenei, has reportedly been appointed as Iran's new Supreme Leader by the country's Assembly of Experts following his father's death during the recent US-Israeli strikes, a decision said to have been made under pressure from the powerful Islamic Revolutionary Guard Corps.

Rubio condemned the incident, stating that American embassies and diplomatic facilities were facing direct attacks from what he described as a "terroristic regime."

US Secretary of State Marco Rubio said initial reports indicated that a drone struck a parking lot adjacent to the consulate's chancellery building, triggering a fire. He confirmed that all personnel had been safely evacuated and accounted for.

Flames and thick black smoke were seen billowing from the vicinity of the US Consulate in Dubai following a suspected attack, as Iran continued retaliatory actions linked to recent US-Israeli strikes. Video circulating online captured a powerful explosion near the diplomatic compound.

The United Kingdom is sending helicopters equipped with counter-drone capabilities and the air defence destroyer HMS Dragon to Cyprus following attacks on a British base there. France is also preparing to deploy a frigate and additional air defence systems to the island.

Iran's Red Crescent said the number of people killed has climbed to 787. Residents in Tehran told BBC Persian they are increasingly worried about access to groceries and other essential supplies as the conflict continues.

The United States said it has struck more than 1,700 targets in Iran since launching military operations on Saturday. In response, Tehran has carried out a wave of retaliatory attacks across the region, heightening concerns of further escalation.

Speaking at the White House, US President Donald Trump said that "everything's been knocked out in Iran." He also criticised UK Prime Minister Keir Starmer over Britain's initial reaction to the joint US-Israeli strikes, saying, "this is not Winston Churchill we're dealing with."

Israel has carried out a new series of airstrikes in Iran, escalating its military campaign. The Israeli military said it targeted Iran's "leadership compound" and struck key infrastructure sites in Tehran as part of the latest offensive.