war

Multiple explosions have been reported across Iran’s capital, Tehran, and other cities as United States-Israeli attacks and Iranian retaliation continue.

As the conflict saw its 13th day on Thursday, Iran’s representative to the United Nations, Amir Saeid Iravani, said at least 1,348 civilians have been killed.

The humanitarian toll continues to mount with more than 17,000 injured in Iran since the US and Israel launched their war on February 28. UNICEF described the situation as “catastrophic”, noting that more than 1,100 children have been reported injured or killed.

The Office of the UN High Commissioner for Refugees (UNHCR) estimated that up to 3.2 million people have been displaced within Iran since the conflict began. “This figure is likely to continue rising as hostilities persist, marking a worrying escalation in humanitarian needs,” UNHCR said in a statement.

Meanwhile, in Lebanon, Israeli attacks since March 2 have killed at least 687 people, including 98 children, according to Information Minister Paul Morcos.

United Nations refugee agency says forced displacement likely to increase as US and Israel continue deadly strikes across Iran.

More than three million people have been displaced in Iran since the United States and Israel launched a war against the country late last month, the United Nations says, as concerns mount over a worsening humanitarian crisis.

The UN High Commissioner for Refugees (UNHCR) said on Thursday that as many as 3.2 million people – representing between 600,000 and one million Iranian households – have been forcibly displaced since the war began on February 28.

“Most of them are reportedly fleeing from Tehran and other major urban areas towards the north of the country and rural areas to seek safety,” UNHCR official Ayaki Ito said in a statement.

“This figure is likely to continue rising as hostilities persist, marking a worrying escalation in humanitarian needs.”

The US and Israeli militaries have continued to bombard Iran despite mounting international condemnation and calls for de-escalation.

More than 1,300 people have been killed in US-Israeli attacks across the country to date, according to the latest figures from Iranian officials.

While the US and Israel have said they are targeting Iranian leaders as well as military and nuclear infrastructure, Iran says thousands of civilian sites, such as schools and hospitals, have been attacked.

Iran’s Deputy Health Minister Ali Jafarian told Al Jazeera on Thursday that medical teams have been responding to a growing number of casualties as strikes on urban areas have intensified in recent days.

“Most of these people are civilians,” Jafarian said, adding that more than 30 hospitals and health facilities have been damaged due to the attacks.

On Thursday, explosions were heard in several parts of the capital, Tehran, and other Iranian cities as the strikes continued.

Al Jazeera’s Tohid Asadi said rescuers were digging through mounds of rubble as several multistorey apartment buildings were heavily damaged in recent attacks on a hard-hit eastern neighbourhood of Tehran.

“We saw bodies taken out [of the rubble] … and the situation was far beyond what I can call disastrous,” Asadi said.

Iran has responded to the US-Israeli assault by launching a barrage of missiles and drones at US bases and other sites in countries across the wider Middle East region.

It has also shut down the Strait of Hormuz, a critical Gulf waterway through which about one-fifth of the world’s oil transits, raising serious concerns of disruptions to global energy supplies.

Despite United States President Donald Trump’s repeated declarations of victory in the US-Israeli war on Iran, Tehran’s retaliatory strikes on Israel and US military assets in the region have continued, upending global financial and energy markets.

“We’ve had two decades to study defeats of the US military to our immediate east and west. We’ve incorporated lessons accordingly,” Iranian Foreign Minister Seyed Abbas Araghchi wrote in a post on X on March 1, the day after US and Israeli strikes on Tehran killed Iran’s Supreme Leader Ayatollah Ali Khamenei and other senior Iranian officials.

“Bombings in our capital have no impact on our ability to conduct war,” he wrote.

According to analysts, Iran has made use of “asymmetric” warfare tactics while striking the US and Israel. So, are Tehran’s war tactics working?

Here’s what we know:

What is ‘asymmetric’ warfare?

When the balance of capabilities is unequal in a conflict – as it is in relation to weapons in this one – the weaker party can turn to unconventional methods of warfare, John Phillips, a British safety, security and risk adviser and a former military chief instructor, told Al Jazeera.

This is known as “asymmetric” warfare.

This can include the use of guerrilla tactics, terrorism, cyberattacks, use of proxies and other indirect tools, Phillips said, in order “to offset conventional inferiority, avoid the enemy’s strengths, and exploit vulnerabilities in political will, logistics, and legal or ethical constraints”.

“Iran is conventionally weaker than the US and Israel, but relatively strong compared to many neighbours,” he said.

“What makes Iran distinctive is not that it uses these methods at all, but that they sit at the centre of its grand strategy rather than at its margins.”

Why is Iran using asymmetric warfare?

In the ongoing war between Iran and the US-Israel, Washington and Tel Aviv have been using expensive missiles and drones to attack Iran and to intercept missiles Iran has fired back. The Patriot and THAAD defence systems, for example, which launch interceptors to take out incoming drones and missiles, can cost millions of dollars for each missile they fire. This compares with the $20,000-$35,000 cost of each Iranian Shahed drone.

As a result, the US has reportedly spent $2bn a day in its war on Iran and there are fears it could run out of interceptor missiles altogether if the war goes on for more than a few weeks.

It is therefore in Iran’s interests to focus on holding out against strikes and protecting its own weapons supplies while it does so, military experts say.

However, Phillips explained that precision strikes and sabotage by Israel and the US have demonstrated that Iran is not able to fully shield its missile, drone and nuclear‑related assets, while sanctions and domestic pressures have limited its capacity to sustain a very high‑tempo confrontation.

“As a result, Iran’s asymmetric approach is best understood as an effective ‘survival and leverage’ mechanism that produces a chronic, costly ‘shadow war’, rather than a path to decisive regional hegemony or victory,” he said.

Iran began using asymmetric warfare techniques following the 1979 Iranian revolution, which overthrew Shah Mohammad Reza Pahlavi.

“Instead of trying to match high‑end aircraft, precision munitions, or blue‑water fleets, [Iran] has built a ‘forward deterrence’ posture that operates in the grey zone between war and peace,” Phillips said.

“This is backed by large inventories of ballistic and cruise missiles, mass‑produced drones [often handed to proxies], cyber-operations, and a posture of underground, dispersed and hardened facilities that make preemption difficult and preserve some retaliatory capability.”

What asymmetric tactics has Iran been using?

Enemy depletion tactics

Since US-Israeli strikes on Iran began on February 28, Tehran has launched a wave of ballistic missiles targeting Israel and US military bases across the Gulf region.

Using a mix of short and medium-range ballistic missiles, as well as drone swarms through this defence system, Iran aims to deplete Israeli and US interceptor stockpiles.

Economic warfare

Iran has shut down the Strait of Hormuz through which about 20 percent of global oil and gas supplies are shipped. Linking the Gulf to the Gulf of Oman, the strait is the only waterway to the open ocean available to Gulf oil producers.

On Thursday, Iran attacked fuel tankers in Iraqi waters. Instability in and around the Strait of Hormuz drove Brent crude oil prices past $100 a barrel last week, with wild swings ongoing, prompting fears of a global energy crisis.

Iran has also targeted civilian infrastructure like airports and desalination plants which are crucial for water supply in the region, and it has launched drones targeting oil depots.

War on global finance

Meanwhile, on Wednesday this week, Iran’s Islamic Revolutionary Guard Corps (IRGC) threatened to attack “economic centres and banks” with links to United States and Israeli entities in the Gulf region after what it claimed was an attack on an Iranian bank, with the war in its 12th day.

Since then, many banks like Citibank and HSBC in Qatar, have begun shutting, further threatening global financial stability.

Top technology companies such as Google, Microsoft, Palantir, IBM, Nvidia and Oracle, as well as the listed offices and infrastructure for cloud-based services, are also located in several Israeli cities and in some Gulf countries, which Iran has also threatened to attack.

Use of proxies

Iran has aimed to keep the much more powerful US military and its allies off balance through proxies in Iraq, Lebanon and Yemen. Hezbollah in Lebanon, for example, has fired missiles and drones into northern Israel since March 2 as part of Iran’s retaliatory strikes.

“At the core of this [asymmetric] approach is a network of proxies and partners – Hezbollah in Lebanon, Shia militias in Iraq, groups in Syria, Hamas and Palestinian Islamic Jihad in Gaza and the Houthis in Yemen – which receive weapons, training, funding and ideological guidance from Iran,” Phillips said.

These actors allow Tehran to threaten Israeli and US forces, as well as regional shipping lanes, on multiple fronts, “often with a degree of deniability and at a fraction of the cost of deploying its own regular forces”, Phillips noted.

‘Mosaic’ defence system

Iran has organised its defensive structure into multiple regional and semi-independent layers instead of concentrating power in a single command chain that could be paralysed by a decapitation strike. This concept is most closely associated with the formation of the parallel military force, the Islamic Revolutionary Guard Corps (IRGC), particularly under former commander Mohammad Ali Jafari, who led the force from 2007 to 2019.

The doctrine has two central aims: to make Iran’s command system difficult to dismantle by force, and to make the battlefield itself harder to resolve quickly by turning Iran into a layered arena of regular defence, irregular warfare, local mobilisation and long-term attrition.

What damage have these tactics done to the US and Israel?

Iran’s asymmetrical playbook has made the war more expensive for the US. It has been forced to spend money on replacing stockpiles of expensive missiles like Tomahawks and defensive systems such as Patriot and THAAD interceptors.

According to the Center for Strategic and International Studies (CSIS), the first 100 hours alone of Operation Epic Fury – the codename for the US-Israeli assault on Iran – cost the US approximately $3.7bn, mostly unbudgeted. Israel, already reeling from the economic strain of its prolonged wars in Gaza and Lebanon, faces mounting domestic pressure as daily sirens force millions into bunkers.

While the Pentagon has not yet announced an official estimate for the cost of the war, late last week, two congressional sources told US broadcaster MS NOW that the war is costing the United States an estimated $1bn a day.

A day later, Politico reported that US Republicans on Capitol Hill privately fear the Pentagon is spending close to $2bn a day on the war.

Meanwhile, officials from President Donald Trump’s administration estimated during a congressional briefing this week that the first six days of the war on Iran had cost the US at least $11.3bn, a source familiar with the matter told the Reuters news agency.

Reporting from Washington, DC, following the publication of the CSIS analysis last week, Al Jazeera’s Rosiland Jordan said the Pentagon had put together a $50bn supplemental budget request in order to replace Tomahawk and Patriot missiles and THAAD interceptors already used in the first week of the war, along with other equipment that had been damaged or worn out so far.

Are Iran’s tactics working?

To a certain extent, they are.

According to a report by The Soufan Center, the “pattern of Iranian counterattacks suggests a layered operational approach designed to generate pressure on Gulf states, create regional disruption on land, sea, and air, while simultaneously attempting to exhaust US and allied defensive resources”.

“Tehran appears to be fighting a war of endurance: prolong the conflict, expand the economic battlefield, make the costs increasingly prohibitive, ration advanced capabilities, and impose steady human and financial costs on its adversaries. All with the hope that political tolerance erodes faster in Jerusalem and Washington than in Tehran,” the report noted.

This may be working. Questions about the cost of the war are already causing a political headache for the Trump administration in Washington.

Congress’s House Minority Leader Hakeem Jeffries told reporters at a Capitol Hill news conference last week that President Donald Trump is “plunging America into another endless conflict in the Middle East” and “spending billions of dollars to bomb Iran”.

“But they can’t find a dime to make it more affordable for the American people to go see a doctor when they need one,” he said. “Can’t find a dime to make it easier for Americans who are working hard to purchase their first home. And they can’t find a dime to lower the grocery bills of the American people.”

Trump won the presidency in 2024 largely on the back of a promise to handle the rising cost of living and he faces mid-term elections this year. It is likely that the cost of the war will not play well with voters, analysts say.

In Israel, opposition politician Yair Golan has also criticised his government’s economic management of the war.

In a post on X on Sunday, he wrote: “The war with Iran has been planned for months. The fact that the Israeli government has not prepared an orderly economic plan to support citizens during the war period is a disgrace.

“The serving and working public should not be the one footing the bill for the war out of its own pocket while billions of shekels go to the evading and non-working sector,” he said, adding that the opposition will soon replace the government.

Ali Vaez, director of the Iran Project at the International Crisis Group, told Al Jazeera that at a fraction of the cost – and despite a significant technological gap – Iran has demonstrated an ability to hold the global economy at risk, to pressure Washington into “blinking first”.

“A steady stream of inexpensive drones and limited missile strikes can disrupt the thriving economies of Israel and the Gulf, sending shockwaves through energy markets and ultimately translating into higher prices at American gas stations,” he said.

Phillips, the British safety, security and risk adviser, said the strategy has worked in important but limited ways.

“It has helped the Islamic republic survive intense sanctions, clandestine campaigns and periodic strikes while maintaining a credible ability to hit US bases, Israeli territory and Gulf infrastructure, which in turn raises the political and military cost of any attempt at regime-change war,” he said.

“Iran’s reach – stretching from Lebanon and Syria to Iraq and Yemen – allows it to shape crises, quickly raise the stakes of local conflicts, and force adversaries to devote substantial resources to missile defence, counter‑UAV systems, naval protection and regional coalition management,” he noted.

“However, there are clear constraints and growing problems. Key proxies such as Hezbollah and various militias have suffered leadership and infrastructure losses; the network has become more fragmented and sometimes less controllable, increasing the risk of unwanted escalation even as its coherence as an instrument of policy erodes,” he added.

Al Jazeera’s Tohid Asadi shows the aftermath of US-Israeli airstrikes on a residential neighbourhood in Iran, where rescue teams have been searching for survivors among the rubble.

President Trump was uncommonly lucky in his first term, neither inheriting nor provoking a crisis of the sort that tests U.S. presidents, until COVID struck in his final 10 months. (He failed that test, contributing to his 2020 reelection defeat.) Trump 1.0 was bequeathed a growing economy from President Obama, and the incoming president assembled a roster of capable advisors who often acted to prevent him from doing nutty things at home and abroad.

Trump 2.0 made sure that no such human guardrails populated his second Cabinet, only genuflecting enablers. Unrestrained, he has presided over one crisis on top of another, all of his own making. Tariff mayhem and high prices. Armed agents and troops in American cities. Repeated violations of court orders. Demolition at federal agencies and the White House.

And now Trump has taken the nation to war against Iran in league with Israel’s Benjamin Netanyahu. Depending on the moment and the audience, a contradictory Trump is either claiming the war is “very complete” or that much remains to be done to “decimate” Iran. On Wednesday he blithely told Axios, “Any time I want it to end, it will end,” even as U.S. officials planned further actions.

In any case, Trump’s war of choice and the killing of the supreme leader of Iran’s terroristic theocracy now has spawned another potential crisis, counterterrorism experts warn: the risks of retaliatory terrorist threats at home. And that is a threat, whether from homegrown extremists or sleeper cells of the sort that came alive for 9/11, that is likely greater because of the initial self-induced crisis of Trump’s second term: his whacking of the federal government.

Trump authorized Elon Musk’s destruction of the bureaucracy in the name of “government efficiency” and continues to exact retribution against any federal employee who had anything to do with investigating and prosecuting him during his interregnum. Longtime agents and operatives have been eliminated at the FBI, Justice Department, Department of Homeland Security, CIA and elsewhere. Especially at the FBI, counterterrorism experts with centuries of collective experience are gone and many who remain have been diverted to Trump’s top priority: mass deportations.

Consequently, the president who promised to “Make America Safe Again” has arguably made Americans less safe.

I raised this scary prospect just over a year ago as Trump’s teardown of the purported Deep State was underway. And now a Mideast war that Trump promised never to start has further incentivized Iran and its jihadi proxies to hit back, just as he’s diminished the nation’s early-warning systems.

Enough intelligence remains, however, that even in the days before Trump ordered the first strikes against Tehran, government analysts were picking up “worrisome signs” of Iranian plotting against U.S. targets, the New York Times reported. After the U.S.-Israel onslaught and death of Ayatollah Ali Khamenei on Feb. 28, the government intercepted a possible Iranian “operational trigger” to “sleeper assets” outside Iran, according to ABC News.

Counterterrorism expert Colin P. Clarke, executive director of the Soufan Center, which focuses on global security and transnational terrorism, wrote this week in the Atlantic that U.S. agencies’ record of disrupting Iranian-backed plots in America was in jeopardy given the recent changes in funding, personnel and priorities. “Because of this,” he concluded, “the U.S. homeland is arguably more vulnerable than it has been in a long time.”

In a follow-up exchange of emails, Clarke told me, “Many of this administration’s moves have been myopic — shifting counterterrorism resources to immigration, firing FBI agents working counterintelligence, etc. A week before the U.S. went to war with Iran, the FBI Director Kash Patel was off gallivanting in Milan at the Olympics [where he struggled to chug a Michelob Ultra, a firing offense in its own right] when he should have been preparing for the potential for an Iranian response on U.S. soil.”

Patel’s preposterous partying with the U.S. men’s hockey team while war-planning was underway in Washington was widely, justifiably mocked. But it stands as a metaphor for the entire Trump administration’s cavalier attitude toward homeland security. Its abusive focus on both migrants and citizens protesting on the migrants’ behalf is a distraction from actual threats to the country.

Patel, like his boss at the Justice Department, Atty. Gen. Pam Bondi, has made plain in words and actions that the president’s political enemies are the real public enemies No. 1. One of Bondi’s first acts was creation of a “weaponization working group” to identify, fire or prosecute those in her department who’d investigated and prosecuted Trump, many of whom also had experience in domestic and transnational terrorism. The association representing FBI agents called her purges “dangerous distractions” from the work “to make America safe again.”

Days after starting the Iran war, when homeland security should have been on red alert, Trump fired his secretary of Homeland Security, Kristi Noem. Her costly cosplaying as the homeland’s heroine on horseback in anti-migrant videos, along with her penchant for luxury jets allegedly to transport deportees, was too much even for him.

Yet all three “national security” officials — Noem, Bondi and Patel — simply reflect Trump’s own warped approach and blasé attitude toward the homefront.

When Time magazine last week asked the commander in chief whether Americans should be worried about potential terrorist strikes at home, he replied, “I guess.”

“We plan for it,” he added. “But yeah, you know, we expect some things. Like I said, some people will die. When you go to war, some people will die.”

The administration is planning for it all right. An extraordinary number of senior Trump officials have taken up residence in houses on military bases, including Bondi, Noem, the secretaries of State and Defense, Marco Rubio and Pete Hegseth, and White House consigliere Stephen Miller.

The rest of us just have to keep our fingers crossed. I guess.

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The surge in oil prices triggered by the war in Iran is increasingly becoming a major concern for global central banks, which are closely monitoring the potential economic and financial consequences of the shock.

More than a week of conflict in the Middle East has disrupted energy supply routes and pushed crude prices sharply higher, raising fresh fears about inflation. For policymakers already grappling with fragile economic conditions, the oil spike presents a complex policy dilemma.

Historically, oil shocks have posed a difficult challenge for central banks. Rising energy prices can drive inflation higher while simultaneously weakening consumer spending and business activity by raising costs. In such circumstances, policymakers face an uncomfortable choice: tighten policy to control inflation or ease financial conditions to support economic growth and employment.

The current situation could potentially produce both outcomes at once, creating a scenario where inflation rises even as economic demand weakens a combination that complicates monetary policy decisions.

Inflation Versus Economic Growth

Central banks traditionally respond to inflationary pressures by raising interest rates or maintaining tighter monetary policy. Some policymakers argue that responding quickly to inflation triggered by an oil shock can prevent inflation expectations from becoming entrenched and reduce longer-term economic damage.

Others, however, advocate “looking through” temporary energy-driven price spikes, arguing that aggressive tightening could unnecessarily damage economic growth. This approach gained prominence after the pandemic, when many central banks initially viewed inflation as temporary a judgment widely criticised in hindsight.

The decision facing policymakers now depends on several uncertainties, including how long the conflict lasts, how severely energy supplies are disrupted, and whether governments intervene with subsidies or price caps to protect consumers.

Given these unknowns, many central banks may prefer to adopt a cautious approach, waiting to see how markets and economic conditions evolve before making significant policy adjustments.

Financial Stability Risks Enter the Picture

Beyond inflation and growth concerns, central banks must also consider a third responsibility that has gained prominence since the global financial crisis: financial stability.

Senior policymakers worry that the oil shock could expose vulnerabilities that have been building in global financial markets for years. A large macroeconomic disturbance involving energy prices, inflation, interest rates and currency volatility could trigger a broader financial stress event.

Much of the concern centres on the growing role of “shadow banking” institutions, financial intermediaries operating outside traditional banking regulation. These entities have become increasingly important providers of credit to companies and governments.

One major area of focus is the rapid expansion of private credit funds, which now manage more than $3 trillion globally. These funds allow asset managers to lend directly to businesses, often outside the scrutiny of public markets or traditional banking standards.

Regulators worry that during a major shock, investors could rapidly withdraw funds from these vehicles, potentially creating liquidity problems for borrowers and spillover risks for banks that help finance or manage the funds.

Pressure in Bond and Repo Markets

Another major source of concern lies in government bond markets, where highly leveraged hedge funds have become increasingly active. Many of these funds use repurchase agreements, or “repo” markets, to borrow money and finance large trades involving government bonds.

These strategies often rely on exploiting small price differences between cash bonds and futures contracts, but they involve substantial leverage. While such activity can help smooth government financing, it can also create systemic vulnerabilities during periods of market stress.

The Financial Stability Board, which monitors risks to the global financial system for the G20, warned earlier this year that sudden deleveraging in repo markets could disrupt sovereign bond markets.

More than $16 trillion in repo transactions backed by government bonds were outstanding last year, with about 60% concentrated in the United States. A sudden withdrawal of leveraged investors could therefore have significant ripple effects across global financial markets.

New Fragilities: Stablecoins and Technology Stocks

Regulators are also monitoring emerging risks linked to digital finance. Stablecoins cryptocurrencies pegged to traditional currencies such as the U.S. dollar have grown rapidly and are increasingly investing reserves in government bonds.

With the stablecoin market now worth roughly $300 billion and expanding, any loss of confidence in these assets could trigger large-scale sales of the bonds that back them. Such an event could add stress to already volatile financial markets.

At the same time, some investors remain concerned about high valuations and heavy market concentration in the rapidly growing artificial intelligence sector, which could amplify market volatility during periods of economic uncertainty.

Analysis: Oil Shock Could Trigger Wider Financial Stress

The Iran war oil shock illustrates how geopolitical crises can interact with financial vulnerabilities to create broader economic risks.

Higher energy prices directly increase inflation and strain household finances. At the same time, they can force central banks to reconsider interest-rate policies, potentially leading to higher borrowing costs and greater volatility in financial markets.

Such conditions could expose weaknesses in highly leveraged sectors of the financial system, particularly in shadow banking, hedge funds and digital financial markets.

Although previous shocks including the economic turmoil following Russia’s invasion of Ukraine did not ultimately trigger a major financial crisis, policymakers remain cautious. The brief turmoil in the U.S. regional banking sector in 2023 demonstrated how quickly financial stress can emerge when economic conditions shift.

If oil prices remain elevated and central banks are forced to respond aggressively, the resulting tightening of financial conditions could amplify existing vulnerabilities across markets.

For now, the disturbances appear manageable. But the combination of geopolitical conflict, energy market disruption and financial fragility ensures that central banks will continue to watch the situation with increasing concern.

With information from Reuters.

One the UK’s biggest tour operators has suspended its profit guidance after revealing impact of Middle East war on bookings

Spooked Brits are putting their holiday plans on hold because of the Middle East crisis.

Leading holiday firm On the Beach revealed a “significant” drop in demand from British families to Turkey, Greece, Cyprus, and Egypt. “The timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown,” it said.

At the same time, there are are warnings that the cost of a summer getaways could jump after a spike in jet fuel prices. It comes as many UK families would be booking sunshine trips for the Easter holidays.

The scale of the hit to bookings was enough for On the Beach to suspend its full year profit guidance. Boss Shaun Morton said: “Following the onset of the conflict in the Middle East, our operational teams have been working round the clock to support directly impacted customers in resort and to enable a return home as soon as possible.”

READ MORE: Saudi oil giant warns of ‘catastrophic consequences’ to global fuel suppliesREAD MORE: Mortgage rates hit 5% and deals slump after latest Iran war fall-out

The fall-out from the Iran war has already seen fuel prices jump and the cost of fixed rate mortgages rise. Industry experts Moneyfacts said the average two-year fixed rate mortgage had risen again, from 5.01% 5.04%. The average five-year fixed deal went up from 5.09% to 5.13%.

It came as oil prices remained at around $100 on Thursday – as two tankers were ablaze in Iraqi waters after what appeared to be Iranian strikes.

The latest wave of attacks on oil and transport facilities across the Middle East came as Iran warned the world should be ready for oil to hit $200 a barrel.

The conflict has spread across the region and prompted the International Energy Agency to recommended releasing 400 million barrels from reserves to dampen one of the worst oil shocks since the 1970s, the biggest such intervention in history.

Iran has made clear it intends to impose a prolonged economic shock.

Oil prices, which shot up earlier in the week to nearly $120 a barrel before retreating, jumped almost 10% back above $100 amid renewed fears about supply disruption.

Iranian explosive-laden boats appear to have attacked two fuel tankers in Iraqi waters setting them ablaze and killing one crew member.

Chris Beauchamp, chief market analyst at IG, said: “Overnight attacks on shipping off Iran are the stuff of nightmares for investors, confirming that one of the world’s key waterways is closed to shipping and resulting in a fresh surge in oil prices.”

US President Donald Trump claimed the IEA decision “will substantially reduce oil prices as we end this threat to America and the world.”

So far there has been no sign that ships can safely sail through the Strait of Hormuz, the now-blockaded channel along the Iranian coast that serves as a conduit for around a fifth of the world’s oil.

An Iranian military spokesperson said the Strait was “undoubtedly” under Iran’s control.

Lawmakers express concerns as Trump officials project $50bn more may be needed for Iran war funding.

Officials from President Donald Trump’s administration have estimated during a congressional briefing this week that the first six days of the war on Iran had cost the United States at least $11.3bn, a source familiar with the matter told the Reuters news agency.

That figure, from a closed-door briefing for senators on Tuesday, did not include the entire cost of the war, but was provided to lawmakers as they have clamoured for more information about the cost.

Several congressional aides have said they expect the White House to soon submit a request to Congress for additional funding for the war. Some officials have said the request could be for $50bn, while others have said that estimate seems low.

The administration has not provided a public assessment of the cost of the conflict or a clear idea of its expected duration. Trump said during a trip to Kentucky on Wednesday that “we won” the war but that the US would stay in the fight to finish the job.

The $11.3bn figure was first reported on Wednesday by The New York Times.

The human cost

The US-Israeli war on Iran has so far killed about 2,000 people, mostly Iranians and Lebanese, as the conflict has spread across the Middle East, with Iranian retaliatory strikes on neighbouring countries hosting US assets, sending energy prices soaring.

The United Nations children’s agency (UNICEF) says the “intensifying conflict” has killed or wounded 1,100 children, creating a “catastrophic” situation for millions of children across the Middle East.

About 800,000 people have already been displaced in Lebanon by relentless Israeli bombardment.

Administration officials also have told lawmakers that $5.6bn of munitions were used during the first two days of strikes.

Members of Congress, who may soon have to approve additional funding for the war, have expressed concern that the conflict will deplete US military stocks at a time when the defence industry was already struggling to keep up with demand.

Democratic lawmakers have demanded public testimony under oath from administration officials about the Republican president’s plans for the war, including how long it might last and what his plans are for Iran once the fighting has stopped.

Trump on Wednesday said the war with Iran may end “soon” because there is “practically nothing left” for the US military to bomb. He did not provide any evidence for that claim.

Israeli journalist and writer, Gideon Levy, says that regime change in Iran is unlikely and the decision to end the war ultimately rests with US President Trump, not Israel.

Iranian explosive-laden boats appear to have attacked two fuel tankers in Iraqi waters, setting them ablaze and killing one crew member, after projectiles struck three vessels in Gulf waters, according to reports.

The ships targeted in late-night ⁠attacks on Wednesday in the Gulf near Iraq were the Marshall Islands-flagged Safesea Vishnu and the Zefyros, which had loaded fuel cargoes in Iraq, two Iraqi port officials told the Reuters news agency.

“We recovered the body of a foreign crew member from the water,” one port security official said, as Iraqi rescue teams continued searching for other missing seafarers. It was not immediately clear which ship that person was linked to.

One Iraqi port security source said Zefyros is flagged ‌in Malta and provided Reuters with a list of crew names.

Al Jazeera’s correspondent in Baghdad, Iraq, Mahmoud Abdelwahed, said the tankers were loaded with crude oil from the Umm Qasr port in southern Iraq in the Basra province, and were attacked soon after their voyage got under way.

“Iraqi officials say this is a flagrant violation of Iraq’s sovereignty given the fact this act, they say, of sabotage has happened in Iraq’s territorial waters,” Abdelwahed said.

Reuters said that reports of the use of explosive-laden unmanned surface vessels, which Ukraine has used with great effect in its war with Russia, come as Iran has blocked oil shipments from transiting the key Strait of Hormuz, through which one-fifth of ⁠the world’s oil transits but has been blocked amid the United States-Israeli war on Iran.

Reuters, citing two unnamed sources, also reported on Wednesday that Iran ‌has deployed about a dozen mines in the strait, while US President Donald Trump said US forces had struck 28 Iranian mine-laying vessels, amid warnings by Trump of severe repercussions should Iran lay mines in the key waterway for global shipping.

Strait of Hormuz sealed

Iran’s Islamic Revolutionary Guard Corps (IRGC) have warned that any ship passing through the Strait of Hormuz will be targeted.

The Thai-flagged Mayuree Naree dry bulk vessel was struck by “two projectiles of unknown origin” while sailing through the strait earlier on Wednesday, causing a fire and damaging the engine room, the ship’s Thai-listed operator Precious Shipping said in a statement.

“Three crew members are ⁠reported missing and believed to be trapped in the engine room,” Precious Shipping said.

“The company is working with the relevant authorities to rescue these three ⁠missing crew members,” it said, adding that the remaining 20 crew members had been safely evacuated and were ashore in Oman.

Images shared by Thai news outlet Khaosod English showed what were reported to be crew members of the ship after their rescue by Oman’s navy.

The IRGC said in a statement carried by the semi-official Tasnim news agency that the ship was “fired upon by Iranian fighters”, suggesting the first direct engagement by the IRGC, who have previously fired missiles or drones.

The Japan-flagged container ship ONE Majesty also sustained minor damage on Wednesday from an unknown projectile 25 nautical miles (about 46 kilometres) northwest ⁠of Ras al-Khaimah in the United Arab Emirates, two maritime security firms said. Its Japanese owner Mitsui OSK Lines and a spokesperson for Ocean Network Express, its charterer, said the vessel was struck while at anchor in the Gulf, and an inspection of the hull revealed minor damage above the waterline.

All crew are safe, they said, adding that the vessel remains fully operational and seaworthy. The owner said the cause of the incident remained unclear and was under investigation.

A third vessel, a bulk ‌carrier, was also hit by an unknown projectile approximately 50 nautical miles (about 93km) northwest of Dubai, maritime security firms said.

The projectile had damaged the hull of the Marshall Islands-flagged Star Gwyneth, maritime risk management company Vanguard said, adding that the vessel’s crew were safe. Owner Star Bulk Carriers said the ship was hit in the hold area while it was anchored. There were no crew injuries and no listing.

The US Navy has refused near-daily requests from the shipping industry ⁠for military escorts through the Strait of Hormuz since the start of the war on Iran, saying the risk of attacks is too high for now, sources familiar with the matter told Reuters.

The Bahraini interior ministry released footage of a massive blaze at a fuel storage facility following an Iranian attack. Bahrain hosts the US Navy’s Fifth Fleet and has been consistently targeted amid the US-Israeli initiated war.

Some supporters of the US-Israeli war on Iran are using the treatment of women in the country as a justification for bombing it. Al Jazeera’s Ava Warriner explains.

Two foreign tankers were seen ablaze in Iraqi territorial waters after a strike near the al-Faw port. Authorities say they evacuated 25 crew members but have confirmed at least one death and are battling to control the flames.

Global currency and commodity markets stabilised slightly on Tuesday after a volatile start to the week triggered by the war involving Iran, United States and Israel. The U.S. dollar steadied against major currencies after earlier declines, following remarks from U.S. President Donald Trump that the conflict could end “very soon.”

Financial markets had been thrown into turmoil a day earlier amid fears that a prolonged war could trigger a major global energy shock. The conflict has disrupted oil and gas exports through the critical Strait of Hormuz, a vital shipping route for global energy supplies.

Although markets calmed somewhat after Trump’s comments, the broader environment remains highly uncertain as investors continue to assess the potential economic fallout from the conflict.

Dollar Holds Ground as Oil Prices Ease

In Asian trading, the U.S. dollar was largely steady against other major currencies after retreating from the highs reached during Monday’s market turbulence.

The currency traded at around 157.73 yen against the Japanese yen and about $1.1632 against the euro, reflecting a stabilisation following the sharp movements seen earlier.

Meanwhile, oil prices remained elevated but declined from the dramatic peaks reached at the start of the week. Brent crude traded at roughly $93 per barrel, still significantly higher than levels before the outbreak of the war but well below Monday’s surge toward $120.

The pullback in oil prices helped ease immediate concerns about a severe energy shock, although analysts caution that volatility could continue if the conflict escalates again.

Investors Remain Cautious

Despite the relative calm in currency markets, analysts say investors are far from convinced that the crisis is nearing resolution.

Rodrigo Catril, a currency strategist at National Australia Bank, warned that markets could continue to experience sudden shifts in sentiment as geopolitical developments unfold.

According to Catril, it remains unclear whether the Iranian leadership would be willing to pursue de-escalation, suggesting that the risk of renewed market volatility remains high.

The Islamic Revolutionary Guard Corps in Iran dismissed Trump’s suggestion that the conflict could end quickly, describing the remarks as “nonsense.”

Risk-Sensitive Currencies Under Pressure

Currencies closely linked to global economic sentiment weakened as investors remained cautious.

The Australian dollar slipped to around $0.7063, while the New Zealand dollar fell to roughly $0.5912. These currencies often decline during periods of geopolitical uncertainty or when investors shift toward safer assets.

The dollar, by contrast, has benefited from its traditional role as a safe-haven currency during times of crisis. The escalation of the conflict and disruption to energy markets prompted investors to move funds into U.S. assets, supporting the currency.

The British pound recovered from losses earlier in the week to trade around $1.3434.

Energy Prices and Global Growth Concerns

Investors remain concerned that sustained high energy prices could slow global economic growth. Rising oil costs increase expenses for businesses and households, effectively acting as a tax on economic activity.

At the same time, higher energy prices could complicate monetary policy by pushing inflation upward and making it harder for central banks to lower interest rates.

Analysts at Deutsche Bank noted that a broader market sell-off in risk assets would likely require several conditions to occur simultaneously: persistently high oil prices, a shift in central bank policy expectations and clear evidence of a slowing global economy.

Strategist Henry Allen said markets are now significantly closer to those thresholds than they were just a week ago, though the full conditions for a major downturn have not yet materialised.

Analysis: Markets Brace for Prolonged Volatility

The market reaction to the Iran war underscores how closely global financial conditions are tied to geopolitical developments in the Middle East.

While Trump’s comments about a possible quick end to the conflict helped stabilise markets temporarily, the underlying risks remain substantial. The disruption of energy supplies through the Strait of Hormuz continues to threaten global oil flows and could trigger renewed price spikes if the conflict intensifies.

For investors, the situation presents a delicate balance. On one hand, hopes for de-escalation could stabilise energy prices and reduce pressure on financial markets. On the other, continued fighting or further disruptions to oil shipments could quickly reignite volatility across currencies, commodities and equities.

Until there is clearer evidence of either de-escalation or escalation, markets are likely to remain highly sensitive to political developments, with the dollar continuing to benefit from its role as a global safe haven.

With information from Reuters.

Attacks on multiple commercial ships in the waters around Iran on Wednesday increased global energy concerns, pushed nations to unleash strategic oil reserves and sparked fresh critiques of the Trump administration’s readiness for a war it started.

As Trump administration and U.S. military officials continued to claim increasing success and advantage in the conflict — and authorities downplayed a reported threat of drone attacks on California — leaders around the world scrambled to respond to the latest attacks and the International Energy Agency’s call for the largest ever release of strategic oil reserves by its members to help stem energy price spikes.

President Trump also faced renewed questions about a deadly strike on an Iranian elementary school at the start of the war, after the New York Times reported Wednesday that a military investigation had determined the U.S. was responsible.

“I don’t know about it,” Trump said when asked about the report.

In an address Wednesday morning, IEA Executive Director Fatih Birol said energy shipments through the Strait of Hormuz had “all but stopped” amid the conflict, driving massive global competition for oil and gas in wealthier countries and fuel rationing in poorer nations.

He said the IEA’s 32 member nations have brought a “sense of urgency and solidarity” to recent discussions on the matter, and had unanimously agreed to “launch the largest ever release of emergency oil stocks in our agency’s history,” making 400 million barrels of oil available.

However, he said the most needed change is the “resumption of traffic through the Strait of Hormuz.”

A vendor pumps petrol from Iranian fuel oil tankers for resale near the Bashmakh border crossing between Iraq and Iran.

(Ozan Kose / AFP/Getty Images)

Several countries, including Germany, Austria and Japan, had already confirmed their plans to release reserves.

The White House did not immediately respond to a request for comment on any U.S. plans to release its strategic reserves, or how much would be released. The U.S. is an IEA member.

Trump told reporters Wednesday that the U.S. has hit Iran “harder than virtually any country in history has been hit,” including by wiping out its naval fleet and eliminating other vessels capable of laying mines, and that he believes oil companies should resume shipments through the strait despite the recent attacks.

U.S. Interior Secretary Doug Burgum backed the idea of releasing oil reserves in a Fox News interview.

“Certainly these are the kinds of moments that these reserves are used for, because what we have here is not a shortage of energy in the world; we’ve got a transit problem, which is temporary,” Burgum said. “When you have a temporary transit problem that we’re resolving militarily and diplomatically — which we can resolve and will resolve — this is the perfect time to think about releasing some of those, to take some pressure off of the global price.”

Burgum said that while Iran is “holding the entire world hostage economically by threatening to close the strait,” Trump has made the consequences of such actions “very clear,” and “there’s a lot of options between ourselves and our allies in the region, including our Arab friends in the region, to make sure that those straits keep open and that energy keeps flowing for the global economy.”

The IEA did not provide details as to the release of the 400 million barrels, part of a broader reserve of some 1.2 billion barrels held by its members. It said the reserves “will be made available to the market over a time frame that is appropriate to the national circumstances of each Member country and will be supplemented by additional emergency measures by some countries.”

The agency said an average of 20 million barrels of crude oil and oil products transited the strait per day in 2025, and that options for bypassing the strait are “limited.”

While some tankers believed linked to Iran were still getting through the Strait of Hormuz, which under normal circumstances carries about 20% of the world’s oil and natural gas, Iranian officials threatened attacks on other vessels — saying they would not allow “even a single liter of oil” tied to the U.S., Israel or their allies through the channel, which connects to the Persian Gulf.

Trump has repeatedly claimed that the U.S. and its powerful Navy would support commercial vessels and ensure the strait remains open to oil shipments, but that has not been the case.

Tankers wait off the Mediterranean coast of southern France on Wednesday.

(Thibaud Moritz / AFP/Getty Images)

The United Kingdom Maritime Trade Operations center, run by the British military, reported at least three ships struck in the region Wednesday — including ships off the United Arab Emirates and a cargo ship that was struck by a projectile in the strait just north of Oman, setting it ablaze.

The Trump administration and the U.S. military, meanwhile, have been pushing out messaging about wiping out Iran’s ability to plant mines in the strait — posting dramatic videos of major strikes on tiny boats on small docks.

Adm. Brad Cooper, the leader of U.S. Central Command, said in a video posted to X on Wednesday morning that “in short, U.S. forces continue delivering devastating combat power against the Iranian regime.”

“I’ve said this before, but it bears repeating: U.S. combat power is building, Iranian combat power is declining,” he said.

The U.S. has struck more than 60 Iranian ships, and just “took out the last of four Soleimani-class warships,” he said. “That’s an entire class of Iranian ships now out of the fight.”

Cooper said Iranian ballistic missile and drone attacks have “dropped drastically” since the start of the war, though “it’s worth pointing out that Iranian forces continue to target innocent civilians in gulf countries, while hiding behind their own people as they launch attacks from highly populated cities in Iran.”

He also addressed the attacks on commercial shipping in the region directly, saying that “for years, the Iranian regime has threatened commercial shipping and U.S. forces in international waters,” and that the U.S. military’s “mission is to end their ability to project power and harass shipping in the Strait of Hormuz.”

Other U.S. leaders called the U.S. war plan — and specifically its approach to protecting the Strait of Hormuz — into question.

In a series of posts to X late Tuesday, which he said followed a two-hour classified briefing on the war, Sen. Chris Murphy (D-Conn.) slammed the administration’s plans as “incoherent and incomplete.”

Murphy wrote that the administration’s goals for the war seemed to be focused primarily on “destroying lots of missiles and boats and drone factories,” and without a clear plan for what to do when Iran — still led by “a hardline regime” — begins rebuilding that infrastructure, other than to continue bombing them. “Which is, of course, endless war,” he wrote.

Murphy also specifically criticized the administration’s plan for the Strait of Hormuz — which he said simply doesn’t exist.

“And on the Strait of Hormuz, they had NO PLAN,” he wrote. “I can’t go into more detail about how Iran gums up the Strait, but suffice it [to] say, right now, they don’t know how to get it safely back open. Which is unforgiveable, because this part of the disaster was 100% foreseeable.”

Ships in the strait remained under threat of various forms of attack Wednesday, as did much of the region as the war raged on.

There was an attack on a U.S. Embassy operations center at Baghdad’s airport, which officials attributed to a drone launched by Iranian proxies based in Iraq. No casualties were reported.

Lebanon’s Health Ministry reported the death toll there — from fighting between Israel and Iranian-backed Hezbollah fighters — had risen to 634 since last week, including 91 children. Another 1,500 people had been wounded, the ministry said.

Iranian authorities have said U.S. and Israeli attacks have killed 1,255 people since Feb. 28. That includes many Iranian leaders, including then-Supreme Leader Ayatollah Ali Khamenei. U.S. officials have said Iranian attacks in the region have killed seven U.S. service members, with another 140 wounded.

CBS News reported Wednesday that dozens of those injuries were sustained by service members in the March 1 Iranian drone attack on a tactical operations center in Kuwait — which is also where six of the seven deaths occurred.

The outlet reported that the attack was more severe than the Trump administration has revealed, with more than 30 military members still in hospitals Tuesday with a range of battle injuries including “brain trauma, shrapnel wounds and burns.”

Threats extended beyond the Middle East, too — including to California, where law enforcement agencies were warned by federal authorities that Iran “allegedly aspired to conduct a surprise attack” on California using drones launched from a vessel off the U.S. coast.

However, sources told The Times that advisory was cautionary and not backed by credible intelligence.

Times staff writer Gavin J. Quinton, in Washington, D.C., contributed to this report.

The war involving Iran, United States and Israel is increasingly affecting energy supplies far beyond the Middle East, with Bangladesh now scrambling to secure fuel imports after disruptions to regional shipping routes.

Bangladeshi officials say the country has begun receiving diesel shipments from suppliers including China and India, allowing authorities to secure enough fuel to meet roughly one month of national demand. Arrangements are also being made to secure supplies for an additional month.

The South Asian nation of about 175 million people depends heavily on imported energy, with roughly 95% of its fuel requirements sourced from abroad. The disruption of Middle Eastern oil flows following the war has therefore exposed Bangladesh to severe supply risks.

Fuel Rationing and Economic Disruptions

To manage the supply shortage, authorities have introduced emergency measures including fuel rationing for vehicles, restrictions on diesel sales and the temporary closure of universities.

Energy shortages are also affecting Bangladesh’s critical export industries. The country is the world’s second-largest clothing exporter after China, and many garment factories rely on diesel-powered generators during power outages.

Industry leaders say the situation has worsened since the conflict began in late February. Power cuts have doubled to as much as five hours per day, forcing factories to rely more heavily on backup generators.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said many companies are struggling to obtain sufficient diesel to keep their operations running during electricity outages.

The shortages threaten to disrupt production in one of Bangladesh’s most important economic sectors, which accounts for the majority of the country’s export earnings.

Emergency Diesel Shipments Arrive

To stabilise supplies, the state-run Bangladesh Petroleum Corporation (BPC) has arranged diesel shipments from international traders.

Energy officials say around 60,000 metric tons of diesel are currently being delivered by three trading companies, with another 90,000 metric tons expected to arrive later this month.

A cargo of approximately 27,000 metric tons from PetroChina has already arrived at Chittagong Port, while another shipment of roughly 28,000 metric tons from Vitol is waiting at the port’s outer anchorage.

Additional supplies are also arriving through a cross-border pipeline from India’s Numaligarh Refinery, which is currently providing about 5,000 metric tons of diesel. Officials said negotiations are underway to secure a further 30,000 metric tons from Indian Oil Corporation.

Bangladesh typically consumes about 380,000 metric tons of diesel each month. However, officials estimate that rationing measures have reduced current demand to around 270,000 metric tons per month.

Oil Imports Threatened by Hormuz Disruptions

While refined diesel cargoes have continued to arrive, Bangladesh faces greater risks in securing crude oil shipments for its domestic refineries.

The country imports about 1.4 million metric tons of crude oil annually under long-term supply agreements with Saudi Aramco and Abu Dhabi National Oil Company.

However, shipments from these suppliers must travel through the strategically vital Strait of Hormuz, which has been heavily disrupted by the war. Officials say at least one cargo of around 100,000 tons from Saudi Aramco has already been delayed in the Gulf due to the ongoing crisis.

The Strait of Hormuz is one of the world’s most important energy transit routes, and any prolonged disruption could have far-reaching consequences for countries heavily dependent on imported fuel.

Gas Shortages Add to Energy Crisis

Bangladesh’s energy difficulties extend beyond diesel shortages. Severe natural gas shortages have already forced the closure of four of the country’s five state-run fertiliser factories.

Authorities have redirected the available gas supply toward electricity generation in an effort to stabilise power production during the crisis.

The combination of diesel shortages, disrupted oil imports and limited gas supplies is placing growing pressure on Bangladesh’s energy system at a time when global fuel markets are already experiencing heightened volatility.

Analysis: Energy Dependence Exposes Economic Vulnerability

Bangladesh’s struggle to secure diesel supplies illustrates how the war involving Iran is affecting energy-importing economies far beyond the immediate conflict zone.

Countries that rely heavily on imported fuel are particularly vulnerable to disruptions in global energy shipping routes, especially those linked to the Strait of Hormuz. Even temporary interruptions can lead to fuel shortages, higher prices and broader economic disruption.

For Bangladesh, the situation highlights the structural risks created by its dependence on imported energy. Industries such as garments, which rely on stable electricity supplies and backup diesel generators, are especially exposed to supply shocks.

Although emergency shipments from China and India have temporarily stabilised supplies, the situation remains fragile. If the conflict in the Middle East continues to disrupt oil shipments or drive up prices, Bangladesh could face prolonged energy shortages with significant implications for its economy and export industries.

With information from Reuters.

Warning comes as 400 million barrels of oil are being released from global reserves during waterway’s closure.

Iran’s Islamic Revolutionary Guard Corps (IRGC) says it will not allow “a litre of oil” through the Strait of Hormuz as the closure of the key Gulf waterway continues to roil global energy markets during the US-Israeli war on Iran.

A spokesperson for the IRGC’s Khatam al-Anbiya Headquarters said on Wednesday that any vessel linked to the United States and Israel or their allies “will be considered a legitimate target”.

“You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel,” the spokesperson said in a statement. “The price of oil depends on regional security, and you are the main source of insecurity in the region.”

Global oil prices have fluctuated wildly this week during continued US-Israeli attacks against Iran, which has retaliated by firing missiles and drones at targets across the wider Middle East.

The closure of the Strait of Hormuz, through which about one-fifth of the world’s oil supplies transit, and production slowdowns in some Gulf countries have raised concerns of further disruptions.

Concerns around the duration of the war, which began on February 28 and has shown no sign of abating, are also adding to uncertainty, sending oil prices soaring.

On Wednesday, three ships were hit by projectiles in the Strait of Hormuz, maritime security and risk firms said, including a Thai-flagged cargo vessel that came under attack about 11 nautical miles (18km) north of Oman.

Release of oil reserves

World leaders, including members of the Group of Seven (G7) and the European Union, have been mulling what action to take in response to the war’s impact on global economies.

Christian Bueger, a professor of international relations at the University of Copenhagen and an expert in maritime security, said Europe will be facing “a major energy supply crisis” if the Strait of Hormuz is not reopened.

“For the shipping industry right now, it’s impossible to go through the Strait of Hormuz,” Bueger told Al Jazeera. “And if there are not stronger signals in the near future that they can at least try to go through the strait, then we are looking at a major shipping crisis, which can last weeks if not months.”

On Wednesday, the International Energy Agency (IEA) announced that its 32 member countries had unanimously agreed to release 400 million barrels of oil from their emergency reserves to try to lower prices.

“This is a major action aiming to alleviate the immediate impacts of the disruption in markets,” IEA Executive Director Fatih Birol said during an address from the agency’s headquarters in Paris.

“But to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz,” he added.

The reserve supplies will be made available “over a timeframe that is appropriate” for each member state, the IEA said in a statement without providing details.

German Economy and Energy Minister Katherina Reiche said earlier in the day that the country would comply with the release while Austria also said it would make part of its emergency oil reserve available and extend its national strategic gas reserve.

Meanwhile, Japan’s Ministry of Economy, Trade and Industry said it would release about 80 million barrels from its private and national oil reserves.

Japanese Prime Minister Sanae Takaichi said the country, which gets about 70 percent of its oil imports through the Strait of Hormuz, would begin releasing the reserves on Monday.

Israel believes it is progressing faster than expected in achieving its objectives in the war against Iran, according to Israel’s ambassador to France.

Ambassador Joshua Zarka said the military campaign, which Israel initially predicted would last several weeks, is moving ahead of schedule in meeting its strategic goals.

Speaking to BFM TV, Zarka said Israel’s objectives extend beyond dismantling Iran’s nuclear programme. He said the broader aim is to weaken Iran’s leadership so that it can no longer project power beyond its borders and so that the Iranian population can determine its own political future.

Israel’s Broader Strategic Objectives

According to Zarka, Israel’s campaign is designed not only to limit Iran’s military capabilities but also to significantly weaken the country’s ruling authorities.

The ambassador said that reducing the government’s ability to operate abroad would help prevent attacks against Israel and its allies, while also creating conditions in which Iranians could “take their fate into their own hands.”

His comments reflect a broader strategic message from Israel that the war is intended to reshape Iran’s regional role, rather than simply eliminate specific military programmes.

Zarka, who previously served as Israel’s lead diplomat dealing with Iran, suggested that Israel’s military progress is exceeding initial expectations.

Warning Over New Iranian Leadership

Zarka also commented on the recent appointment of Mojtaba Khamenei as Iran’s new supreme leader following the death of his father, Ali Khamenei.

He said that if Mojtaba Khamenei follows the same policies as his predecessor, he could become a potential target for Israel.

The remark underscores the increasingly confrontational rhetoric surrounding the conflict and signals that Israel sees Iran’s leadership itself as central to the confrontation.

Conflict Expands to Lebanon

At the same time, Israel has intensified military operations against Hezbollah, the Iran-backed militant group based in Lebanon, after cross-border attacks on Israeli territory.

The Lebanese government has said it would like to hold direct talks with Israel to stop the fighting. However, Zarka dismissed the possibility of negotiations at this stage.

Instead, he argued that the war would end only if Hezbollah is disarmed a step he said depends on decisions taken by the Lebanese government.

Analysis: Israel Signals No Immediate Path to Negotiations

Zarka’s comments suggest Israel believes the current military campaign is producing results and therefore sees little incentive to pursue negotiations in the near term.

By framing the war’s goals around weakening Iran’s leadership and limiting its regional influence, Israeli officials are signalling that the conflict is about more than just nuclear or missile capabilities.

The remarks also highlight Israel’s strategy of confronting Iran’s regional network of allied groups, including Hezbollah, which it views as a key extension of Tehran’s power.

Taken together, the statements indicate that Israel intends to continue military pressure until it believes Iran’s ability to project influence across the region has been significantly reduced.

With information from Reuters.

Simon Calder gave his thoughts on when travel disruption will start to ease following the strikes on Iran

A travel expert has shared his views on when ‘people will be able to travel again’ as the Middle East conflict continues to escalate. Journalist Simon Calder, who specialises in travel, discussed the crisis and its impact on worldwide travel.

American and Israeli strikes on Iran are approaching the end of their second week, with no resolution in sight. Travel to the Middle East remains limited, with airlines cutting back on the number of flights to and from the area.

Countries such as Oman, Qatar, and the United Arab Emirates serve as vital transport hubs for destinations including Asia and Australasia. The outbreak of hostilities has left hundreds of thousands of travellers stuck.

Speaking to Sky News, Mr Calder offered his perspective on when travel might become more straightforward. He said: “We’ve already seen missiles sent to Turkey and attacks on Cyprus. Now, personally, I think the chances of anything happening to a tourist in Turkey or Cyprus are microscopically low, but I also know that people are rebooking away. They’re going to the western Mediterranean – typically Spain and Portugal – because they believe they will be safer there.

“If you’re flying from the UK to a holiday spot such as Turkey or Cyprus and that flight is cancelled, then, fortunately, air passenger rights rules are squarely on your side. The airline that cancels the flight has to get you to your destination as soon as possible, regardless of the cost. And if you can’t get there immediately, the airline has to provide meals and accommodation, if necessary, before you are able to get to your destination.

“The Foreign Office warns against travel to Kuwait, to Bahrain, to Qatar and, crucially, to the UAE, home to the busiest hub in the world: Dubai International Airport. But I’m also predicting that, actually, that ruling is going to lift fairly quickly, and people will be able to travel again.”

Flights are still operating through Dubai International Airport, despite two Iranian drones injuring four people after exploding at the facility. The Dubai Media Office, which releases statements on behalf of the city-state’s government, confirmed flights are continuing, and that the attack caused ‘minor injuries to two Ghanaian nationals and one Bangladeshi national, and moderate injuries to one Indian national’.

Officials have been attempting to restore its flight schedule, though the airport has been targeted amid the conflict. The war has created uncertainty for travellers with flights booked in the coming weeks, prompting Mr Calder to offer his guidance on what passengers should do.

READ MORE: Iran war travel expert Simon Calder issues Emirates ‘flights will be resuming’ updateREAD MORE: Martin Lewis explains ‘safe thing to do’ ahead of April 1 price change

“If your flight is due to go, I’d say, a week or more from now, well, all you can do is just hope that it goes ahead,” he stated. “If you’re going imminently and you do not know if your trip is running, well, the basic news is that if you go to Abu Dhabi, to Dubai, to Doha, you will be going against Foreign Office advice. So, be aware of that; your travel insurance will be invalidated.

“I’ve got some skin in the game. I am booked to fly out on Saturday night from Jakarta, the Indonesian capital, through to Abu Dhabi and connect onwards to London. Now, at the moment, along with many, many other travellers, I’m absolutely promised the flight will go ahead as normal, and I trust that it will. But I simply do not know.

“At the moment, I’m definitely not cancelling my flight because, well, bluntly, if you cancel the flight – which is what the airlines would really like you to do – you will simply be removing yourself from the problem. If, like me, you’re booked in a few days’ time and you do have a bit of flexibility, then absolutely keep your booking open.

“If you go for a refund, first of all, the airline will be delighted because you’ll be a problem that’s removed from their cares and, secondly, you could find yourself paying three times, five times, 10 times as much to get back. Much better to remain a problem for the airline; they’ve got to get you where you need to be.”

Motorists around the globe are already feeling the impact of the United States and Israel’s war on Iran, with fuel prices sharply rising since the war began.

In the US, a gallon of regular petrol that averaged $2.94 in February now costs $3.58, marking a 20 percent increase, according to data from AAA Fuel Prices, a retail fuel price tracker from the American Automobile Association (AAA).

While each US state sets its own petrol prices, several states have surpassed $4 per gallon, with California exceeding $5 per gallon, the highest level it has been in more than two years.

Which countries have the sharpest petrol price increases?

According to data analysed from Global Petrol Prices, a data platform that tracks and publishes retail energy prices across approximately 150 countries, at least 85 countries have reported increases in petrol prices following the initial attacks on Iran by the US and Israel on February 28. Some nations announce price changes only at the end of each month, so higher prices are expected for many others in April.

Vietnam recorded the highest petrol price increase of nearly 50 percent, rising from $0.75 per litre of 95-octane on February 23 to $1.13 on March 9. Laos follows with a 33 percent increase, then Cambodia at 19 percent, Australia at 18 percent, and the US at 17 percent.

The table below shows the countries that have increased petrol prices at the pumps.

Asian countries pay the biggest price

Asia is disproportionately dependent on the Strait of Hormuz for the delivery of its oil and gas, which has been effectively closed since the start of the war. The strait joins the Gulf – also referred to as the Persian Gulf and the Arabian Gulf – to the Gulf of Oman and is the only passage for the region’s oil producers to the open ocean.

Japan and South Korea are among the most vulnerable, importing 95 percent and 70 percent of their oil from the Gulf, respectively.

Both East Asian nations have enacted emergency measures to stabilise their energy markets. On March 8, Japan instructed its oil reserve sites to prepare for a potential release of strategic reserves. The next day, South Korea introduced a maximum price cap on petrol and diesel for the first time in 30 years.

In South Asia, the impact of the war is more severe than in East Asia because countries like Pakistan and Bangladesh have much thinner financial buffers and smaller strategic reserves.

In an attempt to conserve energy, Bangladesh‘s government has ordered all public and private universities to close immediately. In Pakistan, government offices will now operate a four-day workweek, while schools have closed, and a 50 percent work-from-home policy has been enacted to save fuel.

In Europe, the Group of Seven finance ministers convened an emergency meeting to discuss rising prices, with French President Emmanuel Macron raising the possibility of releasing 20-30 percent of emergency strategic reserves to ease the pressure on consumers.

How high oil costs drive up the price of food

Oil prices and food prices move in lockstep, with energy prices affecting every stage of the food supply chain, from the fertilisers used in the fields to the trucks that carry food from field to supermarket shelf.

Rising oil prices also directly affect shipping and the cost of transport.

“The lifeblood of the global economy is transport,” economist David McWilliams told Al Jazeera. “It’s getting stuff from A to B – it’s a logistics problem, a supply chain problem, and ultimately transportation is the energy of the global economy.”

Fears of stagflation – increasing inflation and rising unemployment, which major oil shocks have historically summoned – are rising. Economists point to the crises of 1973, 1978 and 2008 as evidence that every significant spike in oil prices has been followed, in some form, by global recession.

In lower-income countries, where populations spend a far greater share of their income on food and import large quantities of grain and fertiliser, rising oil prices could rapidly translate into food shortages.

What products are made from oil and gas?

Oil and gas are used for far more than just fuel. They are raw materials for thousands of everyday products.

Plastics, including water bottles, food packaging, phone casings and medical syringes, are all derived from crude oil.

Crude oil is also the hidden ingredient in synthetic fabrics such as polyester, nylon and acrylic, which are used to make everything from sportswear to carpets. It also underpins the cosmetics industry, as it is used to make products such as petroleum jelly (Vaseline), lipsticks and concealers.

Household items also rely on oil-based ingredients, with laundry detergents, dishwashing liquids, and paints all derived from petroleum products.

The global food supply is essentially built on natural gas in the form of fertilisers, used to enhance crop yields and ensure that food production can meet demand.

For years, Iran’s leaders believed time was on their side.

After the United States withdrew from the 2015 nuclear agreement, known as the Joint Comprehensive Plan of Action (JCPOA), Tehran effectively adopted what later came to be described as a “strategic patience” approach. Rather than immediately counter-escalating, Iran chose to endure economic pressure while waiting to see whether diplomacy could be revived.

The logic behind the strategy was simple: eventually, Washington would recognise that confrontation with Iran was against its own interests.

Today, that assumption lies shattered.

The collapse of diplomacy and the outbreak of war have forced Iran’s leadership to confront a painful reality: their belief that the US would ultimately act rationally may have been a profound miscalculation.

If Iran survives the current conflict, the lessons Iranian leaders draw from this moment may motivate them to pursue a nuclear deterrent.

The strategy of waiting

After the first Trump administration withdrew from the JCPOA and launched its “maximum pressure” campaign in 2018, Tehran initially avoided major counter-escalation. For nearly a year, it largely remained within the deal’s limits, hoping the other signatories, particularly Europeans, could preserve the agreement and deliver on the promised economic benefits despite US sanctions.

When that failed, Tehran began gradually increasing its nuclear activities by expanding enrichment and reducing compliance step by step while still avoiding a decisive break.

The pace accelerated after Iran’s conservative-dominated parliament passed a law mandating a significant increase in nuclear activities, in the wake of the assassination of top nuclear scientist Mohsen Fakhrizadeh. The shift was reinforced further by the 2021 election of conservative President Ebrahim Raisi.

The ultimate goal was to rebuild negotiating leverage, as Tehran believed that broader geopolitical and regional trends were gradually shifting in its favour. From its perspective, China’s rise, Russia’s growing assertiveness, and widening fractures within the Western alliance suggested that Washington’s ability to isolate Iran indefinitely might weaken over time.

At the same time, Iran pursued a strategy of reducing tensions with its neighbours, seeking improved relations with Gulf states that had previously supported the US “maximum pressure” campaign. By the early 2020s, many Gulf Cooperation Council countries had begun prioritising engagement and de-escalation with Iran, culminating in moves such as the 2023 Saudi-Iran rapprochement brokered by China.

Against this backdrop, even as tensions rose, Tehran continued to pursue diplomacy. Years of negotiations with the Biden administration aimed at restoring the JCPOA ultimately produced no agreement. Subsequent diplomatic efforts under Trump’s second presidency also collapsed.

Underlying this approach was a fundamental assumption: that the US ultimately preferred stability to war. Iranian officials believed Washington would eventually conclude that diplomacy, rather than endless pressure or a major war, was the most realistic and least costly path forward.

The joint US-Israeli assault on Iran has now exposed how deeply flawed that assumption was.

The return of deterrence

While Tehran based its strategy on mistaken beliefs about the rationality of US foreign policy, Washington, too, is misreading the situation.

For years, advocates of the maximum pressure campaign argued that sustained economic and military pressure would eventually fracture Iran internally. Some predicted that war would trigger widespread unrest and even the collapse of the regime.

So far, none of those predictions has materialised.

Despite the enormous strain on Iranian society, there have been no signs of regime disintegration. Instead, Iran’s political base — and in many cases broader segments of society — has rallied in the face of external attack.

Furthermore, Iran spent years reinforcing its deterrence capabilities. This involved expanding and diversifying its ballistic missile, cruise missile and drone programmes and developing multiple delivery systems designed to penetrate sophisticated air defences. Iranian planners also drew lessons from the direct exchanges with Israel in 2024 and the June 2025 war, improving targeting accuracy and coordination across different weapons systems.

The focus shifted towards preparing for a prolonged war of attrition: firing fewer but more precise strikes over time while attempting to degrade enemy radar and air defence systems.

We now see the results of this work. Iran has been able to inflict significant damage on its adversaries. Retaliatory attacks have killed seven Americans and 11 Israelis, placing a growing strain on US and Israeli missile defence systems, as interceptors are steadily depleted.

Iranian missile and drone strikes have hit targets across the region, including high-value military infrastructure such as radar installations. The closure of the Strait of Hormuz has sent global energy markets into turmoil.

Apart from the immense cost of war, the US decision to launch the attack on Iran may have another unintended consequence: a radical shift in Iranian strategy.

For decades, Supreme Leader Ali Khamenei maintained a longstanding religious prohibition on nuclear weapons. His assassination on the first day of the war may now motivate the new civilian and military leadership of the country to rethink its nuclear strategy.

There may now be fewer ideological reservations about pursuing nuclear weapons. The logic is simple: if diplomacy cannot deliver sanctions relief or permanently remove the threat of war, nuclear deterrence may appear to be the only viable alternative.

Iran’s actions in this conflict suggest that many leaders now see patience and diplomacy as strategic mistakes. These include the unprecedented scale of Iranian missile and drone attacks across the region, the targeting of US partners and critical infrastructure, and political decisions at home that signal a harder line, most notably the appointment of Mojtaba Khamenei as supreme leader.

The choice of Khamenei’s son breaks a longstanding taboo in a system founded on the rejection of hereditary rule and reflects a leadership increasingly prepared to abandon previous restraints.

If a more zero-sum logic of deterrence takes hold across the region, replacing dialogue as the organising principle of security, the Middle East may enter a far more dangerous era in which nuclear weapons are viewed as the ultimate form of deterrence and nuclear proliferation can no longer be stopped.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

Video shared online shows the destruction caused to buildings and vehicles in Iran’s capital after a reported strike near Mehrabad international airport.