Following the US-Israel strikes that killed Iran's Supreme Leader Ayatollah Ali Khamenei on February 28, 2026, Iran has closed the Strait of Hormuz, spiking global energy prices and markets. A triumvirate has taken provisional control in Tehran as missile exchanges and naval losses intensify regional tensions.
Iran confirmed on March 2, 2026, the death of Supreme Leader Ayatollah Ali Khamenei, 86, in coordinated US-Israel airstrikes over the February 28 weekend that also eliminated top Islamic Revolutionary Guard Corps leaders, the military General Staff, and defense minister. Israel described the operation as 'precise,' while US President Donald Trump called Khamenei 'one of the most evil people in history.'
Iran retaliated with missiles striking Israel, Saudi Arabia, UAE, Qatar, and Bahrain, plus drones hitting Oman's Duqm port. Casualties include 201 deaths reported by the Red Crescent and at least 165 from an attack on a girls' school in southern Iran, per IRNA. Trump announced US forces sank nine Iranian Navy ships and damaged naval HQ, posting on Truth Social: 'We're going after the rest.'
The Strait of Hormuz closure—vital for global oil and gas—pushed Brent crude up 10% and European natural gas over 30%. Markets saw sharp volatility, dollar strength, and Treasury yield rises of 6-12 basis points amid inflation fears.
A triumvirate of President Masoud Pezeshkian, judiciary chief Gholamhosein Mohseni Ejei, and Alireza Arafi now leads Tehran. Pezeshkian justified responses as a 'legitimate right.' Trump warned of unprecedented force but noted openness to talks.
Reactions include UAE embassy closure in Tehran, Colombia delaying embassy polling, and German Chancellor Friedrich Merz backing nuclear neutralization while cautioning escalation. Analysts see short-term energy shocks unless broader conflict or regime change pursues.
