U.S. embassy in Riyadh hit by drones

U.S. President Donald Trump advised NewsNation that particulars of Washington’s response to the assault on the U.S. Embassy in Riyadh, and for the deaths of American navy personnel within the Iran battle, can be revealed “soon,” in accordance to a reporter from the outlet who shared excerpts of the interview on X on Monday.

Trump additionally mentioned that boots on the bottom will not be mandatory, in response to the reporter’s put up.

Saudi Arabia’s protection ministry mentioned earlier that the U.S. embassy had been hit by drones, inflicting a small hearth and minor materials harm.

— Vinay Dwivedi

The U.S. embassy in Saudi Arabia’s capital metropolis Riyadh was hit by two drones on Tuesday morning, in response to the Middle Eastern country’s defense ministry.

The drone assault resulted in a “limited fire and minor material damage” to the constructing, in response to the protection authority.

The U.S. Embassy to Saudi Arabia has issued a warning for individuals in Jeddah, Riyadh and Dhahran to cover within the shelter and restricted non-essential journey to any navy installations within the area.

“We recommend American citizens in the Kingdom to shelter in place immediately,” the embassy mentioned in a put up on X.

— Anniek Bao

Speaker Mike Johnson, R-La., on Monday mentioned following a categorized briefing with Secretary of State Marco Rubio that the U.S.’s assault on Iran was a “defensive operation,” the objective of which was not regime change.

“Israel was determined to act in their own defense here. With or without American support. Why? Because Israel faced what they deemed to be an existential threat,” Johnson advised reporters on the Capitol following the briefing.

“The objective was to take out those missiles, the short and midrange missiles, and their ability to produce them,” Johnson mentioned, including that the second goal was to remove Iran’s naval capabilities. “The ayatollah is no more. That was not the mission of the U.S. to go in and take out the regime, but that happened and in my estimation that is a great development for freedom loving people around the world.”

—Justin Papp

Upon leaving a briefing on the conflict in Iran with Secretary of State Marco Rubio, Senate Minority Leader Chuck Schumer, D-N.Y., advised reporters “I found their answers completely and totally insufficient.”

“In fact, at least to me, that briefing raised many more questions than it answered,” Schumer mentioned. He didn’t take any questions.

—Justin Papp

The U.S. State Department on Monday urged Americans in additional than a dozen nations within the Middle East to “depart now” as a result of ongoing battle within the area.

The listing of nations embody Bahrain, Egypt, Iran, Iraq, Israel, the West Bank and Gaza, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, the UAE and Yemen.

In a video put up, Secretary of State Marco Rubio additionally spoke on to “Americans in the Middle East” in regards to the work the State Department was doing to attempt to hold them secure.

—Riya Bhattacharjee

Secretary of State Marco Rubio mentioned the U.S. navy has not but delivered its strongest attacks in opposition to Iran.

“I’m not going to give away the details of our tactical efforts, but the hardest hits are yet to come from the U.S. military,” Rubio advised reporters on Capitol Hill.

“The next phase will be even more punishing on Iran than it is right now,” he mentioned.

The comment echoes Trump, who advised CNN earlier Monday, “The big wave hasn’t even happened. The big one is coming soon.”

Rubio, like Trump and Defense Secretary Pete Hegseth, additionally mentioned it was unclear how lengthy the warfare in Iran is anticipated to final.

“I don’t know how long it will take …. We have objectives. We will do this as long as it takes to achieve those objectives. And we will achieve those objectives; the world will be a safer place when we’re done with this operation,” Rubio mentioned.

— Kevin Breuninger

The loss of life toll of U.S. service members killed in motion throughout the conflict has risen to 6, U.S. Central Command mentioned.

The tally rose from 4 earlier within the day after “U.S. forces … recovered the remains of two previously unaccounted for service members from a facility that was struck during Iran’s initial attacks in the region,” Central Command mentioned in a post on X.

“Major combat operations continue. The identities of the fallen are being withheld until 24 hours after next of kin notification,” the tweet mentioned.

— Dan Mangan

Gold is doing what gold does in instances of geopolitical uncertainty: spiking. The spot price surged to $5,400 in in a single day buying and selling earlier than settling again within the $5,300 vary by early Monday afternoon.

While down from its report excessive of $5,594 on Jan. 29, the worth of gold could have extra room to run. J.P. Morgan analysts mentioned in a brand new analysis be aware that “conflict-driven surges in gold come and go, though geopolitical risks broadly are likely to stay on the boil,” which partly contributes to their forecast of gold reaching $6,300 by the top of 2026.

For traders who suppose they wish to be in gold, it is value noting that many financial advisors suggest retaining different investments — together with gold — to five% or 10% of your portfolio.

“Gold has had long periods where it’s done absolutely nothing, and long periods when it’s been very volatile,” mentioned licensed monetary planner Patrick Huey, proprietor and principal advisor with Victory Independent Planning in Naples, Florida. “And you can certainly lose money in gold.”

— Sarah Agostino

Secretary of State Marco Rubio insisted that “there absolutely was an imminent threat” to the U.S. from Iran that justified launching a widespread navy offensive in opposition to the Middle Eastern nation.

“We knew that if Iran was attacked, and we believed they would be attacked, that they would immediately come after us,” Rubio advised reporters on Capitol Hill.

He prompt that Israel was planning an preliminary strike on Iran, and that the Trump administration then opted to launch its personal preemptive assault with a view to keep away from additional U.S. casualties.

“We knew that there was going to be an Israeli action. We knew that that would precipitate an attack against American forces, and we knew that if we didn’t preemptively go after them before they launched those attacks, we would suffer higher casualties,” Rubio mentioned.

“We were not going to sit and sit there and absorb a blow before we responded,” as a result of doing so would end in “more casualties and more deaths,” he mentioned.

The Cabinet secretary’s remarks got here after Trump administration officers reportedly told congressional workers on Sunday that there was no intelligence suggesting Iran was planning a primary strike on U.S. forces.

Rubio mentioned Monday, “We went proactively in a defensive way to prevent them from inflicting higher damage.”

“Had we not done so, there would have been hearings on Capitol Hill about how we knew that this was going to happen and we didn’t act preemptively.”

— Kevin Breuninger

Senate Minority Leader Chuck Schumer, D-N.Y., on Monday referred to as President Donald Trump “one of the most trigger happy presidents in all of American history” from the Senate flooring on Monday, because the chamber reconvened for the primary time since U.S. strikes on Iran.

Schumer urged senators to help a war powers resolution to curb Trump’s navy motion in Iran that may get a vote on the Senate flooring this week.

“Our resolution affirms what the constitution already says. The president cannot send U.S forces to fight a war in Iran without congressional approval,” Schumer mentioned. “As soon as our resolution comes to the floor, senators need to pick a side: stand with Americans who don’t want war. Or stand with Donald trump as he singlehandedly starts another war.”

—Justin Papp

Thousands of flights have been canceled since Saturday because of ongoing strikes within the Middle East — and, for many individuals, journey insurance coverage may not offer a financial backstop.

Many normal insurance policies exclude sure advantages within the occasion of navy motion, conflict and government-mandated airspace closures, consultants mentioned.

If that is the case, insurers could not reimburse impacted vacationers for nonrefundable prices like flights, lodge nights, meals and excursions.

But a lot is determined by the precise insurer and the tremendous print of the insurance coverage coverage. Travelers could qualify for advantages in sure instances, consultants mentioned.

— Greg Iacurci

An Iranian Revolutionary Guard commander mentioned the Strait of Hormuz is closed, Reuters reported, citing Iranian media.

Iran vowed to set any ship making an attempt to move via the strait on hearth, the outlet reported.

— Dan Mangan

Trump had a visual rash on the correct facet of his neck throughout a public look on the White House, the place he gave an replace in regards to the conflict in opposition to Iran.

“President Trump is using a very common cream on the right side of his neck, which is a preventative skin treatment, prescribed by the White House Doctor,” Trump’s doctor, Dr. Sean Barbabella, mentioned in an announcement despatched to CNBC by the White House.

“The President is using this treatment for one week, and the redness is expected to last for a few weeks,” Barbabella mentioned.

Trump, since final yr, has been seen on a number of events with bruising or make-up on his proper hand. The White House has attributed the bruising to the quantity of handshaking the president engages in, and his use of aspirin.

— Dan Mangan

The U.S. State Department posted on X about steps Americans ought to take within the Middle East, directing these needing consular help to name +1-202-501-4444 from abroad or +1-888-407-4747 from the U.S. and Canada.

In a video put up, Secretary of State Marco Rubio additionally spoke on to “Americans in the Middle East” in regards to the work the State Department was doing to attempt to hold them secure.

— Riya Bhattacharjee

JPMorgan Chase CEO Jamie Dimon warned that he expects an increase in cyber or terrorist assaults globally after the U.S. and Israel attacked Iran over the weekend.

When requested by CNBC’s Leslie Picker about geopolitical dangers attributable to the battle, Dimon mentioned he believed the percentages of a “long, just peace” within the area have been increased on account of the marketing campaign.

“The most important thing is that we keep the Western world free and safe for democracy,” Dimon mentioned. “People like this have gotten away literally with murder for 50 years, that’s far more important.”

“But… as a corollary to that, you’ve got to expect there’ll be cyberattacks or terrorist attacks, either here or around the world,” Dimon mentioned. “Banks may be targets.”

The impression on markets and inflation is prone to be restricted until the marketing campaign is “prolonged,” he mentioned

—Hugh Son

Emirates’ first departure from Dubai for the reason that U.S. and Israel attacked Iran final week took off late Monday, sure for Mumbai, India, an indication that flight cancellations which have topped 11,000 to and from the area since Saturday might quickly begin to ease.

Other flights are scheduled for late Monday after native authorities gave the Dubai-based service the inexperienced mild for “limited” operations. The first flight was operated with an Airbus A380, the biggest passenger airplane on this planet.

Separately, Israeli airline El Al mentioned it was contemplating hiring non-public jets to convey some Israelis dwelling from Europe by way of Jordan.

— Leslie Josephs

The each day price for very giant crude carriers, or VLCCs, was already up sharply yr up to now, and the conflict in opposition to Iran will probably enhance charges much more as marine visitors involves a halt across the Strait of Hormuz.

The time constitution equal — basically each day income — for VLCCs soared to $177,469 final week from $37,869 firstly of the yr, in response to information from the Baltic Exchange.

The enhance is because of a decent provide of VLCC vessels, pushed by increased oil exports from the Middle East initially of the yr and rising geopolitical tensions. An increase in delivery prices tends to finally trickle via to shoppers, boosting the worth on the pump and for petroleum-based merchandise, together with plastics.

“Even without significant further disruptions in the Strait, precautionary restocking and redirection can raise already elevated freight rates further,” Goldman Sachs wrote in a be aware to purchasers on Sunday.

— Pippa Stevens and Gabriel Cortes

Investors are on edge following the U.S. and Israel’s assault on Iran. CNBC’s Michael Santoli examines market reactions as traders weigh regional uncertainty and breaks down how related outbreaks have moved costs previously.

— Lindsey Jacobson

The U.S.-Israel battle with Iran might disrupt crude oil provides and push prices for gasoline higher.

Already, U.S. crude prices gained 6% and U.S. gasoline futures surged by as a lot as 9.1% to $2.496 a gallon Monday, their highest since July 2024. 

It takes six weeks for crude oil to be processed and become gasoline for supply, so the complete impression could also be considerably delayed, in response to Amy Myers Jaffe, director of the Energy, Climate Justice and Sustainability Lab at New York University.

However, with provide now constrained, shoppers are prone to see some quick worth adjustments on the pump.

If the worth of oil goes up by $10 a barrel, the worth of gasoline might rise by about 25 cents a gallon, in response to Ken Medlock, senior director on the Center for Energy Studies at Rice University’s Baker Institute.

Within every week, “everyone is going to be paying a little more than they are right now,” he mentioned.

— Jessica Dickler

Secretary of State Marco Rubio will temporary congressional leaders on the war in Iran on Monday afternoon.

The briefing comes because the Senate returns at the moment and the House will reconvene on Tuesday. Democrats in each chambers have vowed to drive votes on war powers resolutions that might restrict President Donald Trump‘s authority to hold out additional assaults on Iran.

Rubio will meet with the Gang of Eight, a bunch that features leaders from each events within the House and Senate, in addition to the chairs and rating members of the Senate and House intelligence committees. On Tuesday, Secretary of Defense Pete Hegseth, CIA Director John Ratcliffe and Chairman of the Joint Chiefs of Staff Gen. Dan Caine will maintain an all-Congress briefing, the White House confirmed on Monday. White House spokesman Dylan Johnson mentioned bipartisan workers on related nationwide safety committees have been briefed on Sunday.

—Justin Papp

Amazon warned clients within the Middle East of longer supply instances as regional instability tied to the conflict in Iran disrupted operations.

The firm added a discover to the highest of its marketplaces in Israel, Saudi Arabia, Kuwait and Bahrain that reads: “Extended delivery time in your area.”

Amazon added an identical advisory to its web site within the United Arab Emirates.

“As we prioritize safety, some services may be temporarily unavailable in this area and delivery times may be impacted,” the discover said: “Thank you for your patience and understanding.”

Amazon operates warehouses and cloud information facilities all through components of the Middle East. It additionally has company workplaces in Dubai, Saudi Arabia and Israel.

Amazon information facilities within the UAE and Bahrain have been experiencing prolonged power outages on Monday amid the battle.

— Annie Palmer

Trump mentioned the U.S. anticipated “from the beginning” that its navy intervention in Iran would final 4 to 5 weeks, however confused that “we have capability to go far longer than that.”

“We’re already substantially ahead of our time projections. But whatever the time is, [it’s] OK, whatever it takes,” Trump mentioned on the White House.

“We have the strongest and most powerful, by far, military in the world, and we will easily prevail,” he mentioned within the East Room earlier than a Medal of Honor award ceremony.

Trump additionally laid out the U.S. targets for the conflict, greater than two days after the preventing started.

Critics have charged that the justifications for the navy motion have been shifting or opaque. But Trump asserted Monday, “Our objectives are clear.”

The U.S., mentioned Trump, goals to destroy Iran’s missile capabilities; annihilate its naval property; stop Tehran from ever acquiring nuclear weapons; and be sure that the regime can’t help international terrorism.

— Kevin Breuninger

U.S. Central Command in an X post referred to as out the Iranian regime for misinformation in regards to the purported sinking of an American plane service.

“The Iranian regime’s false messaging machine continues to falsely claim that it has sunk a U.S. aircraft carrier,” Centcom mentioned within the put up.

“The TRUTH: The only carrier that has been hit is the Shahid Bagheri, an Iranian drone carrier. U.S. forces struck the ship within hours of launching Operation Epic Fury,” the put up mentioned.

— Dan Mangan

Trump claimed that the navy marketing campaign he launched in opposition to Iran “was our last, best chance to strike” with a view to “eliminate the intolerable threats posed by this sick and sinister regime.”

Iran had ignored U.S. warnings to desert efforts to rebuild after the U.S. struck its nuclear infrastructure final yr, Trump mentioned on the White House.

Tehran was additionally shortly rising a ballistic missile program that might act to “shield their nuclear weapon development,” the president mentioned.

This “posed a very clear colossal threat to America and our forces stationed overseas,” Trump mentioned.

Trump made that assertion after criticizing the 2015 Iran nuclear deal, which was finalized beneath former President Barack Obama and aimed to restrict Tehran from growing its nuclear program.

The U.S. withdrew from that deal in 2018 throughout Trump’s first presidential time period.

“I was very proud to have knocked out the Iran nuclear deal by President Barack Hussein Obama. That was a horrible, horrible, dangerous document. They would have had nuclear weapons three years ago, and they would have used them,” Trump mentioned.

— Kevin Breuninger

Aon, a worldwide insurance dealer, says marine conflict threat underwriters have reacted swiftly to the heightened geopolitical threat surroundings within the Middle East.

The major actions the corporate is observing embody:

• Issuance of formal notices of cancellation beneath normal seven-day conflict clauses on sure annual hull conflict insurance policies.
• Reinstatement of canopy supplied at materially elevated charges.
• Withdrawal or revision of current quoted further premiums for transits via listed high-risk areas.
• Heightened underwriting scrutiny for journeys into or close to delicate zones.

Stephen Rudman, Aon‘s head of marine, Asia, says that “importantly, this activity relates specifically to war risk extensions. Core hull and machinery and P&I covers remain in place unless otherwise advised.”

“Additional premiums for vessels transiting high-risk waters are rising sharply and may continue to fluctuate in the short term. Cargo war risk remains available; however, rates are increasing and quotations are being reviewed on a voyage-by-voyage basis, particularly for energy and bulk commodity trades,” Rudman advised CNBC in emailed feedback.

Aon just isn’t seeing a systemic withdrawal of capability. Instead, the dealer believes the market is repricing to replicate the elevated threat profile and reinsurance constraints.

“Should the situation escalate materially, for example, sustained state conflict or significant vessel loss, further rate correction is likely,” Rudman famous.

— Dawn Giel

Prediction markets are going through renewed scrutiny from federal lawmakers after wagers in regards to the destiny of Iranian chief Ayatollah Ali Khamenei, who was killed within the Saturday bombardment of Iran.

“It’s insane this is legal,” Sen. Chris Murphy, D-Conn., mentioned in a put up on X, referring to a different put up highlighting individuals who had made cash on the invasion. “People around Trump are profiting off war and death. I’m introducing legislation ASAP to ban this.”

Prediction market Kalshi, in a remark to CNBC, mentioned it “doesn’t allow markets directly tied to death,” relating to betting strains over whether or not Khamenei can be out of energy which have acquired criticism. The firm issued refunds in the marketplace, citing laws barring wagers on loss of life.

“We included every precaution on this market to make sure people could not trade on the outcome of death,” the corporate mentioned. “Our rules were clear from the beginning, we never changed them, and we settled based on the rules. We reimbursed all fees and net losses because we thought the UX could have been clearer for users.”

NPR reported that on Polymarket, one other prediction market that isn’t but operational within the U.S., a person beneath the title “Magamyman” cashed in for greater than $553,000.

Read the whole story here.

Disclosure: CNBC and Kalshi have a industrial relationship that features buyer acquisition and a minority funding.

— Garrett Downs

The Iran conflict might shortly be a key problem for each Democrats and Republicans with midterm primaries kicking off this week.

Durham County Commissioner Nida Allam, who’s making an attempt to knock off incumbent Rep. Valerie Foushee Tuesday in a Democratic major in North Carolina’s 4th Congressional District, launched a campaign video Monday morning condemning the conflict in Iran and criticizing Foushee for accepting cash from protection contractors.

“I will never take a dime from defense contractors, or the pro-Israel lobby,” Allam says within the video.

Foushee has additionally condemned the war and mentioned she would help a conflict powers decision to restrict Trump’s navy exercise in Iran. The U.S. House is anticipated to take that measure up this week, however even when it passes Congress, Trump can be extremely unlikely to signal it into legislation.

— Justin Papp

Trump is about to make his first reside public feedback on Iran for the reason that conflict began, a White House official confirmed.

The president was anticipated to debate Iran at a Medal of Honor ceremony on the White House.

— Dan Mangan

U.Okay. Prime Minister Keir Starmer has defended his resolution to delay accepting a U.S. request to make use of navy bases for strikes on Iranian missile websites.

In a speech to lawmakers within the House of Commons, Starmer mentioned that the usage of British navy bases is restricted to “agreed defensive purposes,” including that Britain wouldn’t be becoming a member of the U.S. and Israeli “offensive” strikes in opposition to Iran.

His feedback comply with criticism from Trump, who reportedly accused Starmer of taking “far too long” to simply accept a U.S. request to make use of navy bases for “defensive” strikes on Iranian missile websites.

“We will continue our defensive actions in the region,” Starmer mentioned Monday.

— Sam Meredith

Trump mentioned the U.S. navy will quickly ramp up its offensive in Iran.

“We haven’t even started hitting them hard,” Trump told CNN’s Jake Tapper in a telephone name, the information anchor mentioned Monday morning.

“The big wave hasn’t even happened. The big one is coming soon,” Trump mentioned, according to Tapper, who spoke on air proper after the nine-minute name.

The comment adopted Trump urging Iran’s residents — whom he has inspired to take over the nation’s authorities — to remain inside as a result of “it’s not safe out there,” Tapper mentioned.

The president mentioned that the operations are thus far “going very well.”

“We’re knocking the crap out of them,” Tapper mentioned Trump advised him.

Asked about how lengthy the battle would possibly final, Trump advised the CNN anchor, “I don’t want to see it go on too long. I always thought it would be four weeks, and we’re a little ahead of schedule.”

Defense Secretary Pete Hegseth advised reporters on the Pentagon earlier Monday that the conflict’s timeline might shift longer or shorter than the four-week estimate Trump has beforehand floated.

— Kevin Breuninger

The U.S. is poised to ship further forces to the Middle East at the moment, navy leaders mentioned, whereas suggesting that the conflict might proceed longer than the four- to five-week timeline that Trump floated a day earlier.

In preparation for doable armed battle in opposition to Iran, the U.S. in current weeks had preemptively deployed hundreds of service members from all navy branches, together with dozens of refueling tankers and a number of service strike teams, whereas establishing mandatory provide flows, Joint Chiefs of Staff Chairman Gen. Dan Caine mentioned on the Pentagon.

“And the flow of forces continues today. In fact, [Commander of U.S. Central Command Adm. Brad] Cooper will receive additional forces even today,” Caine mentioned.

Asked what number of troops are at the moment concerned and what number of are anticipated to be despatched, Caine declined to be particular.

But he mentioned “more tactical aviation” is coming into the theater, and added, “I think we’re just about where we want to be in terms of total combat capacity and total combat power.”

Hegseth then responded to a query about Trump’s comment Sunday that the operations might final round 4 weeks.

“It’s the typical, typical NBC sort of gotcha-type question,” Hegseth mentioned.

“President Trump has all the latitude in the world to talk about how long it may or may not take. Four weeks, two weeks, six weeks. It could move up. It could move back. We’re going to execute at his command the objectives we’ve set out to achieve,” Hegseth mentioned.

— Kevin Breuninger

Stocks started the week off with losses after the U.S. and Israel attacked Iran over the weekend.

The Dow Jones Industrial Average dropped 543 factors, or 1.1%. The S&P 500 misplaced 1.1%, and the Nasdaq Composite futures declined 1.6%.

— Sean Conlon

Airlines have canceled thousands of flights for the week within the Middle East.

The cancellations continued Monday, with 1,560 flights scrubbed, or 41.28% of these scheduled for arrival in Middle East nations, in response to aviation information agency Cirium.

Hundreds of hundreds of passengers stay stranded.

The United Arab Emirates had essentially the most flight cancellations within the area, with 774, in response to Cirium. Dubai International Airport within the UAE is among the busiest airport hubs on this planet.

The airport authority that owns and manages airports in Dubai mentioned a small variety of flights can be permitted to function from Dubai International and Dubai World Central – Al Maktoum International, however suggested vacationers to test with their airways.

Airspace stays closed in lots of Middle Eastern nations. Cirium famous that some smaller airways haven’t up to date their schedules to formally cancel flights or have merely not flown the flights.

— Michele Luhn

New Norwegian Cruise Line CEO John Chidsey mentioned the corporate is intently monitoring gasoline prices as crude oil costs leap.

“As for fuel prices, the longer-term impact remains uncertain,” he mentioned on an earnings name Monday. “However, we are currently approximately 51% hedge for 2026, 27% hedge for 2027, which helps mitigate near-term volatility.”

Chidsey mentioned the corporate doesn’t at the moment have cruises working within the affected areas however will probably be monitoring the state of affairs intently.

— Contessa Brewer and Michele Luhn

As transit via the Strait of Hormuz involves a standstill, oil is caught on vessels that may’t exit the Persian Gulf.

Approximately 77 million barrels of oil have been loaded onto tankers at the moment sitting within the Persian Gulf, in response to Kpler information. The oil ready to transit is at its highest degree in six years, and there are an extra 88 million barrels of capability on vessels nonetheless within the area.

Together, it represents about 10 days’ value of shipments, the agency mentioned, which means there is a “finite buffer before the halt in vessel movements severely bottlenecks global exports.”

Brent crude, the worldwide oil benchmark, final traded at $79.22 per barrel, up 8.7%.

— Pippa Stevens

Air Force Gen. Dan Caine, chairman of the Joint Chiefs of Staff, mentioned the U.S. expects to maintain extra navy casualties because the widespread preventing within the Middle East continues.

“This is not a single overnight operation,” Caine mentioned on the Pentagon.

“The military objectives that [U.S. Central Command] and the Joint Force have been tasked with will take some time to achieve, and in some cases, will be difficult and gritty work,” he mentioned.

“We expect to take additional losses and, as always, we will work to minimize U.S. losses.”

Defense Secretary Pete Hegseth gave an identical warning: “An effort of this scope will include casualties. War is hell.”

— Kevin Breuninger

U.S. Defense Secretary Pete Hegseth mentioned that the conflict in Iran just isn’t being waged with a view to overthrow Tehran’s ruling regime — however he pointed to the deaths of Iranian leaders which have resulted from the operations thus far.

“Turns out the regime who chanted ‘Death to America’ and ‘Death to Israel’ was gifted death from America and death from Israel,” Hegseth mentioned throughout a press briefing on the Pentagon.

“This is not a so-called regime-change war, but the regime sure did change, and the world is better off for it,” Hegseth mentioned.

The “clear” mission of the U.S. marketing campaign dubbed “Operation Epic Fury,” he mentioned, is to destroy Iranian navy threats and nuclear capabilities.

“Israel has clear missions as well, for which we are grateful,” Hegseth mentioned.

— Kevin Breuninger

The Strait of Hormuz is not solely very important for oil — it is a key waterway for refined merchandise, too, and costs are outpacing the positive aspects in crude. While oil jumped about 9% on Monday morning, European diesel prices surged 20%.

Tanker visitors via the slender waterway has come to a standstill, whereas Saudi Arabia’s Ras Tanura — a key refinery within the area — was hit by a drone.

Heating oil futures within the U.S., that are a proxy for diesel costs, jumped 14.5% on Monday morning. The gasoline is also known as the workhorse of the financial system, on condition that it powers vans and trains.

Four U.S. service members have now died as a part of the navy battle in Iran and the Middle East, U.S. Central Command mentioned Monday morning.

The newest fallen service member succumbed to their accidents after being “seriously wounded during Iran’s initial attacks,” Central Command mentioned in a put up on X.

“Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” it mentioned.

— Kevin Breuninger

Senior U.S. navy officers are set to temporary reporters on the Pentagon in regards to the newest developments on their navy operations within the Middle East.

Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine will lead the briefing, which is about to start at 8 a.m. ET.

— Kevin Breuninger

FedEx warned clients that shipments may very well be delayed after it suspended flights at main airports within the Middle East. The delivery large operates a hub in Dubai and, in February 2024, it introduced a $350 million funding in a facility there.

Pickups and deliveries in Bahrain, Kuwait, Iraq, Qatar and United Arab Emirates “have been temporarily suspended until further notice,” FedEx mentioned, warning that different markets within the space might expertise delays.

“We are closely monitoring the situation and will resume services as soon as it is safe to do so,” FedEx mentioned.

— Leslie Josephs

QatarEnergy introduced in an announcement seen by CNBC that it has “ceased production of liquefied natural gas” and “associated products,” citing navy assaults on the corporate’s working amenities in Ras Laffan Industrial City and Mesaieed Industrial City within the state of Qatar.

QatarEnergy is among the world’s largest LNG producers, with a complete manufacturing capacity of 77 million metric ​tons every year.

Qatar has been focused by Iranian counterstrikes on its capital Doha, its airport, and different civilian and state infrastructure.

— Emma Graham

Officials from Russia and China’s Foreign Ministries have condemned the U.S.-led strikes however have stopped in need of pledging navy or civilian help to Tehran. That exposes the exhausting limits of Iran’s “strategic partnerships” with Moscow and Beijing, consultants say.

Read extra on the story right here: Why Iran should not count on allies Russia and China to come to its aid

— Holly Ellyatt

Container delivery giants have been pressured to issue fresh guidance for vessels transiting maritime corridors within the Middle East, together with the strategically vital Strait of Hormuz.

The waterway, which is positioned between Oman and Iran and connects the Persian Gulf with the Arabian Sea, is taken into account probably the most necessary arteries for international commerce.

Danish delivery firm Maersk and German container delivery agency Hapag-Lloyd each mentioned over the weekend that they might droop all vessel crossings within the Strait of Hormuz till additional discover, amid the deteriorating safety state of affairs.

Peter Sand, chief analyst at Xeneta, advised CNBC on Monday that increased container delivery charges must be factored in for the Middle East area a minimum of for so long as the battle persists, including there’s “no real alternative” to ocean freight.

— Sam Meredith

Three U.S. F-15 fighter jets crashed over Kuwait in what seems to be a pleasant hearth incident, U.S. Central Command said Monday. None of the aircrew have been harm.

“During active combat — that included attacks from Iranian aircraft, ballistic missiles, and drones — the U.S. Air Force fighter jets were mistakenly shot down by Kuwaiti air defenses,” Centcom mentioned in an announcement.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation.”

The explanation for the incident is beneath investigation and extra data will probably be launched because it turns into accessible, Centcom mentioned.

— Azhar Sukri

“When and how will this end?” is the query everyone seems to be asking because the Middle East disaster gathers tempo with no clear finish in sight, Carl Bildt, former prime minister of Sweden and the co-chair of the European Council on Foreign Relations, advised CNBC on Monday.

“The end of this particular conflict, if there is such a thing, will, of course, shape both Iran and the region for years to come. Key question is, will the regime survive or will it collapse?” Bildt advised CNBC’s “Squawk Box Europe.”

“If [the Iranian regime] survives, in what particular form and what particular shape, and if it collapses, is that a collapse into chaos, or is that collapse into a transition to something that is somewhat more stable?” he mentioned.

The collapse of a regime overseeing a rustic of 90 million individuals would have “profound implications for the stability of the entire region” Bildt mentioned. “So it is a watershed event in the history of the region, with a highly uncertain outcome.”

Bildt referred to as the U.S.’ resolution to strike Iran a “war of choice” relatively than necessity, and one which was borne out of stress from Israel and sensing a weakened Iranian regime amid ongoing protests. He mentioned Iran’s resolution to strike again at targets throughout the Middle East, and past U.S. bases, was “surprising, but also highly disturbing.”

— Holly Ellyatt

Emirates and Etihad have quickly halted all flights into and out of their hubs within the United Arab Emirates on Monday.

“Due to multiple regional airspace closures, Emirates has temporarily suspended all operations to and from Dubai, up until 1500hrs UAE time on Tuesday, 3 March,” Emirates mentioned in an advisory on its web site.

“The situation remains dynamic and is assessed continuously. We urge all customers to review the latest operational updates on emirates.com and check their email for any notifications about changes or cancellations to their flights before travelling to the airport,” Emirates mentioned.

The UAE’s different main service, Etihad Airways, additionally mentioned it was suspending flights.

“Regional airspace closures continue to impact Etihad Airways’ operations, and all flights to and from Abu Dhabi are suspended until 14:00 UAE time on Tuesday 3 March,” Etihad said on its web site.

Meanwhile, Jordan introduced a partial and non permanent closure of its airspace.

— Azhar Sukri and Emma Graham

Amrita Sen, founding father of Energy Aspects, advised CNBC’s “Europe Early Edition” this morning that oil markets are prone to maintain at round $80 a barrel for now after an preliminary spike, noting, “we’ve kind of stabilized a little bit,” and including, “I do think we will hold around that 80 level for some time right now,” as there was no direct hit to core Gulf power infrastructure.

The larger concern is the Strait of Hormuz. Sen mentioned Energy Aspects calculates that “about 15 million barrels” per day of oil and “about 80 million tonnes of LNG” handed via the strait final yr. While she doesn’t anticipate Iran to formally shut the waterway, she warned that “what the U.S. will not be able to do is control these one-off attacks on tankers.”

Those incidents are “enough to kind of make the market extremely cautious about sending vessels in,” creating delays and disruption.

Sen mentioned costs would probably keep close to present ranges until there’s “actual damage to energy infrastructure.” Without that, she mentioned, the market holds regular — however “further damage and yes, we go up.”

— Spriha Srivastava

Ayatollah Ali Khamenei’s loss of life following joint U.S.-Israeli airstrikes has thrust Iran’s management into the pressing course of of choosing a brand new supreme chief.

Under Iran’s constitution, the supreme chief is appointed by the Assembly of Experts. When the place turns into vacant, the meeting convenes to deliberate and choose a successor. The resolution requires a easy majority vote.

In the interim, a provisional three-member leadership council assumes the supreme chief’s duties till a substitute is formally appointed.

On Sunday, native media reported that the temporary council includes President Masoud Pezeshkian, Judiciary Chief Gholam-Hossein Mohseni-Ejei and Ayatollah Alireza Arafi, who serves because the Guardian Council’s consultant.

On Polymarket, merchants are pricing Mohseni-Ejei because the slender front-runner at roughly 18%. Other high contenders embody Arafi and Iranian cleric Hassan Khomeini.

Read the complete story here.

— Lee Ying Shan

Saudi Aramco’s Ras Tanura refinery has been hit by a drone, an business supply has advised CNBC.

The facility had been closed as a precaution amid the continued battle within the area.

The supply says a small hearth has been contained and is beneath management.

Saudi Aramco didn’t instantly reply to an emailed request for remark.

— Emma Graham

European shares are anticipated to start out the brand new buying and selling week firmly in adverse territory as international markets drop after the U.S. and Israel launched widespread assaults on Iran on the weekend.

The U.Okay.’s FTSE index is seen opening 0.6% decrease, Germany’s DAX down 1.5%, France’s CAC 40 down 1.4% and Italy’s FTSE MIB 1.2% decrease, in response to information from IG. Read more.

— Holly Ellyatt

Amazon Web Services mentioned Sunday it was working to repair a disruption it suffered within the United Arab Emirates after unidentified “objects” struck one among its information facilities, sparking a fireplace and resulting in an influence lower.

It comes because the UAE is being focused by Iran’s retaliatory missile and drone strikes following U.S. and Israeli assaults on the nation over the weekend.

AWS mentioned on its health dashboard that the difficulty had led to some ongoing connectivity disruptions, however clients have been capable of reroute to unaffected zones.

In its newest replace, AWS mentioned it nonetheless didn’t have an estimated time for energy restoration. “We are investigating additional connectivity issues and error rates in the ME-CENTRAL-1 Region [UAE],” the corporate mentioned.

— Dylan Butts

Loud blasts have been heard for a 3rd day in Dubai and Abu Dhabi. CNBC’s workforce within the United Arab Emirates mentioned the explosions occurred shortly after 9 a.m native time.

The UAE’s Ministry of Defence mentioned in a post on X that the nation’s air drive and air defence items had intercepted “165 ballistic missiles, two cruise missiles and 541 Iranian drones since the start of the Iranian attack.”

Among the places focused have been Dubai’s iconic Burj Al Arab lodge, the Fairmont Hotel on the Palm, Jebel Ali Port, Abu Dhabi’s Etihad Towers and the worldwide airports within the two emirates.

— Emma Graham

Iran’s security chief Ali Larijani mentioned that Tehran has no plans to have interaction in negotiations with the United States.

“We will not negotiate with the United States,” the previous adviser to the late supreme chief mentioned in a put up on X, dismissing studies that it’s looking for to restart negotiations with Washington.

“Trump has plunged the region into chaos with his ‘false hopes’ and is now worried about further casualties of American troops,” he wrote in an earlier post.

— Lee Ying Shan

Kuwait’s Director General of Civil Defense mentioned Monday that the nation’s Air Defense forces had efficiently intercepted a majority of hostile Iranian drones approaching its borders via maritime routes.

The Kuwaiti official additionally confirmed that no accidents have been reported from the interception operations, in response to a report by state-backed media.

According to the Gulf Cooperation Council, Iran unleashed waves of drones and missiles on a number of Arab nations, together with Kuwait, the United Arab Emirates, Bahrain, Saudi Arabia, Oman, and Qatar, over the weekend.

Since then, nations like Bahrain and the UAE have reported profitable interceptions of a whole lot of Iranian drones.

According to Bahrian officers, the assaults have included Iran’s Shahed-136 kind drones, an inexpensive, regionally made drone that may act like a guided missiles that journey to a predetermined goal.

— Dylan Butts

The United Arab Emirates recalled its ambassador from Iran Monday and shuttered its embassy in Tehran in response to missile strikes over the weekend that it mentioned focused civilian infrastructure, together with Jebel Ali Port and airports in Dubai and Abu Dhabi.

The UAE Ministry of Foreign Affairs additionally summoned the Iranian Ambassador and delivered a be aware of protest over what it described as “terrorist attacks.”

Abu Dhabi downgraded ties with Tehran in 2016 after assaults on Saudi diplomatic missions in Iran. Relations deteriorated additional after the UAE joined the Abraham Accords in 2020.

In current years, nevertheless, ties had begun to enhance. The UAE’s nationwide safety advisor, Sheikh Tahnoon bin Zayed al Nahyan, visited Tehran in 2021, in a uncommon transfer aimed toward warming ties.

About half one million Iranians are estimated to reside within the Emirates, a lot of them in Dubai. The Emirate is dwelling to an Iranian hospital, a minimum of one Shiite mosque in Jumeirah and quite a few companies promoting Iranian items. Despite periodic diplomatic strains, the 2 nations have maintained vital buying and selling ties. Iran and the UAE are additionally at odds over three contested islands within the Persian Gulf.

Saudi Arabia, which lately restored diplomatic relations with Iran in 2023 beneath a deal brokered by China, additionally condemned the assaults on the Gulf States and summoned its ambassador from Tehran.

— Emma Graham

A gaggle of Middle Eastern nations and the U.S. issued a joint statement Sunday evening stateside, condemning Iran’s missile and drone assaults and affirming their proper to self-defense.

“The Islamic Republic’s actions represent a dangerous escalation that violates the sovereignty of multiple states and threatens regional stability. The targeting of civilians and of countries not engaged in hostilities is reckless and destabilizing behavior,” in response to the assertion.

“We stand united in defense of our citizens, sovereignty, and territory, and reaffirm our right to self-defense in the face of these attacks. We remain committed to regional security and commend the effective air and missile defense cooperation that has prevented far greater loss of life and destruction.”

— Anniek Bao

U.S. Secretary of State Marco Rubio is scheduled to update high leaders of the Senate and House at 4 p.m. ET on Monday.

This comes on the again of coordinated strikes by the United States and Israel on Iran, and Tehran’s retaliation that has seen it goal U.S. bases within the area, together with these within the UAE and Saudi Arabia.

— Lee Ying Shan

Israel Defense Forces mentioned they have been retaliating in opposition to Lebanon-based militant group Hezbollah for concentrating on Israeli civilians.

“In response to projectile fire toward northern Israel, the IDF is striking Hezbollah targets across Lebanon,” the IDF mentioned in statement posted on X.

“Hezbollah is operating on behalf of the Iranian regime, opening fire against the Israeli civilians, and bringing ruin to Lebanon. IDF troops have prepared for such a scenario as part of Operation ‘Roaring Lion’, and are prepared for an all-fronts scenario,” the assertion learn.

The IDF in 2024 killed Hezbollah’s chief Hassan Nasrallah, who had led the Iran-backed militant group for greater than three many years.

— Vinay Dwivedi

The U.Okay. has granted permission for the U.S. to make use of its navy bases within the Middle East in an effort to destroy Iranian missiles and missile launchers, Prime Minister Keir Starmer said in an tackle on Sunday posted to X.

Starmer framed his resolution as one among self-defense.

The transfer follows Iranian strikes throughout the area which have put British pursuits, residents and allies in hurt’s means, regardless of the U.Okay. not having been concerned within the preliminary U.S. and Israeli assaults on Iran, the prime minister mentioned.

“We all remember the mistakes of Iraq, and we have learned those lessons,” Starmer mentioned. “We were not involved in the initial strikes on Iran, and we will not join offensive action now.”

“But Iran is pursuing a scorched earth strategy,” he added. “So we are supporting the collective self defense of our allies and our people in the region. Because that is our duty to the British people. It is the best way to eliminate the urgent threat and prevent the situation spiraling further.”

Against this backdrop, the U.Okay.’s resolution to permit the U.S. to make use of its bases is according to worldwide legislation, he mentioned.

— Greg Iacurci