US equity futures and global stocks tumbled, the dollar and gold rallied and oil soared as military strikes intensified across the Middle East, sending oil to its biggest surge in four years and stoking concern that faster inflation could weigh on the global economy. AS of 8:10am ET, S&P 500 futures are down more than 1% – but off overnight lows – after the cash index fell nearly 1% over the previous two trading days; Nasdaq futures tumbled 1.5% with all Mag 7 stocks lower by more than 1% in premarket trading; Aerospace/Defense, Energy, and Gold Miners are the safety havens in equities and all are bid pre-mkt; PLTR +4% may help +Software/-Semis. In the latest war news, AMZN data centers were hit in Bahrain/UAE, as was a UK base in Cyprus; with Israel attacking Lebanon; both Israeli and Saudi indices opened higher before reversing lower due to escalation. After soaring 13% at the open, crude oil traded down to +4% and was now +7.5% after Saudi Aramco halted operations at its Ras Tanura refinery after a drone strike in the area. Bond yields are notably higher, rising +4-5bps with the USD bid against all major FX and DXY +57bp which would be its best day since Feb 2. Energy is unsurprisingly leading commodities higher with double-digit gains in gasoil, heating oil, and EU natgas. Gold, which is now at $5400, is leading silver ($94/oz) with platinum flat. 

In premarket trading, energy and defense stocks rallied, with Exxon Mobil shares climbing 5.2% in early trading. British Airways owner IAG SA fell 5.4% amid a widespread disruption to flights in the Middle East. Mag 7 stocks all fall (Microsoft -0.8%, Apple -1%, Nvidia -1.3%, Meta -1.7%, Amazon -2.4%, Alphabet -2.6%, Tesla -2.1%)

• The Iran conflict is pushing shares of airlines and cruise operators lower, while energy stocks jump. Movers include American Airlines (AAL) -6% and Exxon (XOM) +4%.
• US banks and financials are pointing lower as risk off sentiment extends with military strikes intensifying across the Middle East. JPMorgan Chase (JPM) -2%, Wells Fargo (WFC) -1.7%.
• AES Corp. (AES) falls 16% after a consortium led by Global Infrastructure Partners and EQT agreed to buy the electric utility.
• Berkshire Hathaway (BRK/B) slips 1% after the conglomerate’s operating profits fell nearly 30% in Warren Buffett’s last quarter as CEO. Analysts note weakness in the company’s insurance businesses.
• EchoStar (SATS) declines 2% after the parent of Dish Network posted a net loss in the fourth quarter.
• Paramount Skydance (PSKY) rises 5% after Warner Bros. Discovery filed a join-statement following the market close on Friday announcing that they had entered into a definitive merger agreement.
• UniQure (QURE) tumbles 41% after US regulators said the company should conduct a pivotal study before getting approval of its gene therapy for Huntington’s disease, another example of the Trump administration slowing a treatment for a rare disease drug.

While markets are recoiling from the latest war in the Middle East, the strikes on Iran were heavily telegraphed and traders had built up meaningful hedging. Still, the conflict may be longer and wider than some expected. Trump said the bombing campaign against Iran will continue, perhaps for weeks. Iran fired missiles on Israel, US military bases and Persian Gulf countries including the financial hub of Dubai (there is a full summary of all the latest war news in the section below).

The war in Iran is adding to a list of headwinds for markets already on edge after fears over disruption from artificial intelligence and pressure in private credit have nearly erased this year’s gains in the S&P 500. Investors are now focused on how long the conflict will last and how far hostilities might spread, after President Donald Trump said the campaign could continue for weeks.

“The endgame remains highly uncertain, ranging from a relatively swift political exit to a broader regional spillover,” said Mathieu Racheter, head of equity strategy at Julius Baer. “In such a fog of war, markets tend to trade probabilities rather than shifting facts.”

The dollar strengthened as a spike in oil prices spurred traders to dial back bets on Fed rate cuts this year, with Bloomberg economists writing that changes to Fed policy are far from guaranteed, despite the war. The team’s risk scenario is for oil to raise to $108 a barrel, while a more temporary spike would keep the Fed on alert, but not trigger a shift in policy.

Meanwhile, Aramco halted operations at Saudi Arabia’s largest refinery after a drone strike in the area, Bloomberg reported. QatarEnergy’s decision to cease LNG production followed attacks on its Ras Laffan complex, sending European gas prices soaring.

“It is still very unclear what the duration of the conflict will be and more importantly, how the energy market reacts,” said Andrea Gabellone, head of global equities at KBC Securities. “One positive for the US is that the market has corrected since January, so we are not in overbought territory. It’s fair to say havens should continue to outperform.”

Strategists are coalescing around the view that a buying opportunity for US stocks may emerge. JPMorgan’s Mislav Matejka said the weekend’s events will naturally lead to risk-off in the short term, but investors with a 3/6/12-month time frame should use weakness to increase exposure. Morgan Stanley’s Mike Wilson agrees that the bullish view is intact for now, with a lasting spike in oil above $100 needed to impact the US equity outlook.

Still, geopolitical events underscore the need to diversify and hedge portfolios at a much faster pace over the next few months, according to today’s Taking Stock column. The impact on the stock market will be determined by its duration, Citigroup strategists said, as they presume a shorter-term impact.

Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management, said the main questions traders are looking out for are how long the disruption lasts, developments in the Strait of Hormuz, any impact on oil infrastructure and whether Iran and the US can reach a negotiated settlement. “Most geopolitical events have limited long-term impact on asset markets,” Bhayani said. “There is already a premium in oil of circa $7-$10 before today’s trading. Only in an extended conflict, with oil prices over $100, would it materially impact the global economy.”

On the economic front, payrolls come back into focus later this week with the survey forecasting a more modest pace of hiring in February relative to the start of the year. January retail sales data is also due Friday, while the Fed’s Beige Book is released on Wednesday. 

The Stoxx 600 has pared its fall, to 1.4%, although remains on course for its worst daily performance since November after conflict in the Middle East escalated over the weekend. Energy is the only sector in the green, while retail, travel and consumer product stocks fall the most. Here are some of the biggest movers on Monday:

• Shipping and logistics stocks are among the few gainers in European trading on Monday as conflict in the Middle East disrupts the Strait of Hormuz and Red Sea shipping routes.
• Energy stocks rise on back of an oil-price surge triggered by US and Israeli strikes against Iran. Morgan Stanley upgraded the sector to overweight, while JPMorgan upped its price targets on a slew of companies.
• Galp Energia shares rise as much as 9.6%, hitting their highest level since mid-2024, as rising Middle East tensions cause oil prices to surge.
• European defense stocks jump, with BAE Systems among those hitting record highs, as conflict in the Middle East spurs expectations of elevated security spending.
• Novo Nordisk shares fall as much as 5.7% and were downgraded to neutral from buy at Goldman Sachs after data last week showed its next-generation obesity drug CagriSema delivered less weight loss than Eli Lilly’s rival blockbuster.
• European banks fall as war between the US and Iran triggered a broad-based selloff.
• European airlines stocks slump as conflict in the Middle East causes major disruptions at some of the world’s busiest airports. Analysts flag higher fuel costs and air space closures as factors likely to disrupt the sector.
• Informa shares sink as much as 11%, the biggest intraday drop since the Covid outbreak of 2020, as the events firm got swept up in the selloff of stocks exposed to the conflict in the Middle East.
• Oxford Nanopore shares drop as much as 18% after the British DNA-sequencing company cut its medium-term growth guidance, which analysts say will spark consensus downgrades.
• Luxury stocks fall as the escalating conflict in the Middle East creates a “highly uncertain backdrop” for the sector, according to Vontobel.

Earlier in the session, Asian stocks dropped for the first time in six days as the US-Israeli war against Iran prompted investors to reduce exposure to risk assets. The MSCI Asia Pacific Index slid as much as 1.8%, the most in a month, with financials and health-care the worst-performing sectors. A subgauge of energy shares climbed nearly 1% as oil rallied. Pakistani shares plunged the most on record after geopolitical tensions in the Middle East escalated, while benchmarks in Thailand, the Philippines and Hong Kong were leading declines in the region. Markets in South Korea were shut for a holiday. For Asian assets, the main risk from a prolonged Middle East conflict lies in a stronger dollar and higher oil prices, given that most economies in the region are net energy importers. A gauge of the greenback advanced on Monday and oil prices spiked before paring gains following a report that indicated at least one top official in Tehran sought to resume nuclear talks with the US. Japan’s Topix also dropped nearly 3% before paring declines, with bank stocks among the biggest losers.

The Hang Seng China Enterprises Index slumped 1.8% to enter a technical correction. A gauge of Chinese tech shares listed in the financial hub — which entered a bear market last month — shed 2.9%. The declines came as investors keenly awaited the start of China’s most important annual political meeting from Thursday, where top leaders are expected to set the growth target for 2026 and lay out economic priorities for the coming five years.

In FX, the dollar has pulled back from the highs. The Bloomberg Dollar Spot Index is up 0.5%. The Swedish krona is the weakest of the G-10 currencies, falling 0.9%. The Canadian dollar and Norwegian krone have been the most resilient.

In rates, treasuries hold losses after erasing opening gains that were spurred by broadening Middle East warfare after the US struck Iran. The reversal suggested that traders chose to bet on the potential inflationary aspects of the US-Iran conflict rather than rush to safe havens which helped Friday’s rally into month-end. Adding to upside pressure on yields, US benchmark crude oil futures are up about 8% with tanker traffic through the Strait of Hormuz at a near standstill. US yields are 3bp to 4bp higher, keeping curve spreads within 1bp of Friday’s closing levels. 10-year is near 3.98% vs session low 3.922% reached shortly after the Asia open. European government bonds are also in the red with underperformance seen in shorter-dated maturities as traders trim bets on interest rate cuts by the Bank of England and European Central Bank.

For Geoff Yu, senior macro strategist at BNY, Monday’s rise in US yields came as no big surprise given the elevated levels at which bonds were trading. The 10-year rate was at 3.99%, five basis points higher for the day.

In commodities, WTI crude oil futures rose the most in four years, while Brent crude soared more than 7%, topping $80 a barrel as traders assess how quickly Hormuz traffic can normalize. In Europe, natural gas jumped as much as 28%, the biggest increase since August 2023 after Goldman warned that European natural gas prices could more than double if shipping through the Strait of Hormuz is halted for one month. Spot gold rises 2% and briefly topped $5,400/oz. Silver logs a slightly smaller gain. Bitcoin rises 0.8%. 

US economic data slate includes February final S&P Global US manufacturing PMI (9:45am) and February ISM manufacturing (10am); no Fed speakers are scheduled

Market snapshot

• S&P 500 mini -1%
• Nasdaq 100 mini -1.4%
• Russell 2000 mini -1.3%
• Stoxx Europe 600 -1.3%
• DAX -1.6%
• CAC 40 -1.5%
• 10-year Treasury yield +3 basis points at 3.96%
• VIX +3.4 points at 23.3
• Bloomberg Dollar Index +0.4% at 1192.78
• euro -0.6% at $1.1743
• WTI crude +7.4% at $72.01/barrel

Top Overnight News

• Donald Trump said the bombing campaign against Iran may last for weeks and called on the nation’s leaders to capitulate. Blasts were heard across several Gulf states as they intercepted missiles launched by Iran. Trump is pushing for an Iranian leadership change but told ABC his preferred candidates to lead Iran were killed in the initial US strike. BBG
• Iran is planning to name a new supreme leader within days after Saturday’s killing of Ayatollah Ali Khamenei. While Trump has urged Iranians to seize power from the regime, there’s no sign the US has laid the groundwork for an opposition movement. BBG
• The IDF bombed Lebanon after Hezbollah fired rockets and drones into Israel, opening a new front in a widening regional war. Lebanon ordered the militant group to disarm. BBG
• Chinese Foreign Minister Wang Yi called the killing of Khamenei “unacceptable,” complicating the planned summit between Trump and President Xi Jinping. Beijing said Washington gave it no advance warning of the attack, and added that they are in communication with the US about exchanges between their leaders. BBG
• China Foreign Ministry said they are in communication with the US about exchanges between their leaders.
• Wealthy investors who ploughed hundreds of billions of dollars into private credit are pulling back, cutting off a key source of funds that investment giants including Blackstone, Blue Owl, and Ares Management have used to fuel their growth. New commitments to so called non traded business development companies slid 40% to $3.2bn in January compared with December. FT
• DeepSeek is set to release its latest large language model next week, more than a year since its last major release in a fresh test of China’s ambitions to challenge US rivals in AI.
• A gauge of manufacturing activity signaled continued improvement in some of Asia’s top exporting economies midway through the first quarter, as demand for the region’s goods defied a volatile global environment. WSJ
• Bank of Japan Deputy Governor Ryozo Himino said the central bank is expected to keep raising interest rates but gave no hints on the timing of the next hike, as the Middle East conflict heightened uncertainty over the economic outlook. RTRS
• Russian officials increasingly consider there’s no point to continue US-led peace talks with Ukraine unless Kyiv is willing to cede territory to reach a deal, according to people familiar with the negotiations. BBG

Iran War

• US and Israel launched a large-scale joint military operation against Iran on Saturday, 28th February, with explosions reported across Tehran shortly after 09:30 local time (06:00 GMT / 01:00 EST), and additional strikes were confirmed in Isfahan, Qom, Karaj and Kermanshah, while the Israeli military confirmed it launched an additional wave of strikes on Sunday morning, targeting Iran’s ballistic missile and aerial defence systems.
• Iran launched immediate retaliatory missile and drone attacks against Israel, and multiple US military installations across the Gulf and multiple Gulf states, including the UAE, Qatar, Kuwait and Bahrain. Iranian state television officially confirmed the death of Supreme Leader Ayatollah Ali Khamenei following Saturday’s US–Israeli “decapitation strike” on his secure residence and office compound in central Tehran. Furthermore, IRGC declared the Strait of Hormuz closed to international navigation until further notice, while major tanker operators and global trading houses have halted crude, fuel and LNG shipments through the waterway. IRGC also announced on Sunday that they hit 3 US and UK oil tankers with missiles in the Gulf and Strait of Hormuz.
• Iran launched a fresh wave of missile and drone attacks on Sunday, while Iranian sources stated that 27 US bases across the region were targeted, along with Israel’s military headquarters in Tel Aviv. It was also reported that Iran fired missiles towards British military bases in Cyprus and that rockets landed near British troops in Bahrain.
• Israeli Air Force launched a new wave of attacks on Iranian regime targets in Tehran early on Monday and bombarded Hezbollah strongholds in the southern suburb of Beirut, while Hezbollah fired rockets towards Northern Israel for the first time since the ceasefire agreement, and it was also reported that Hezbollah parliamentary bloc head Mohammed Raad was killed in an Israeli raid.
• US President Trump said the US military launched “major combat operations” in Iran with the objective of defending the American people by eliminating imminent threats from the Iranian regime. Trump said people in Iran should stay at home and that bombs will be dropping everywhere, while he called for Iranians to take over the government.
• US President Trump said that Iran’s Supreme Leader Khamenei had died, and he was informed that they destroyed and sank nine Iranian ships, as well as largely destroyed the naval headquarters. Trump separately commented that the military operations are ahead of schedule and that 48 leaders were killed in strikes on Iran, while he also stated that Iranian leaders want to talk and he has agreed to talk, but couldn’t say if it would happen soon, according to Atlantic Magazine and Daily Mail. Furthermore, Trump suggested that the fighting with Iran could go on for four weeks, while he also stated on Sunday that they have hit hundreds of targets in Iran under ‘Operation Epic Fury’ and combat operations will continue in full force until all objectives are complete.
• US President Trump said he could lift sanctions on Iran if its next leader proves pragmatic and that he had three very good choices for Iran’s next leader, although he also commented that the people he considered for Iran’s next leader died in the air attacks.
• US Secretary of War Hegseth is to hold a press conference at 08:00EST/13:00GMT. White House separately announced that US Secretary of State Rubio and Secretary of War Hegseth are to brief a full Congress on Tuesday.
• US officials told Al Jazeera that the strikes on Iran are focused on military targets and will be far more extensive than the US strikes last June, while the US reported that three US service members died and five were seriously wounded amid the operations against Iran.
• Israeli PM Netanyahu said the US and Israel operations are to remove the existential threat from the Iranian regime, while Israeli officials characterised the action as a “pre-emptive strike” to prevent Iran from obtaining nuclear weapons. Israel ordered the shutdown of some natural gas fields as a security measure following the US-Israel strike on Iran, while it pre-approved a USD 2.9bln supplement to the defence budget to fund the war with Iran.

Trade/Tariffs 

• India’s Foreign Ministry announces that they have signed an uranium supply agreement with Canada.
• Singapore and South Korea are in talks to upgrade a free trade agreement.

 A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly pressured as all focus centred on geopolitics following the US and Israeli strikes on Iran, which killed its Supreme Leader and dozens of officials, while Iran responded with retaliatory strikes against the US and allies, including several neighbours in the Gulf. ASX 200 was rangebound with weakness seen in tech, financial and airlines stocks as the latter got a double whammy from flight disruptions and higher fuel costs, while energy stocks benefitted from the surge in oil due to the Iran conflict.
Nikkei 225 fell beneath the 58,000 level as exporters suffered from the worsening geopolitical climate and disruption in the Strait of Hormuz, which the IRGC shut.  Hang Seng and Shanghai Comp were mixed with heavy losses in Hong Kong due to tech weakness, while the mainland shrugged off early jitters and climbed ahead of the annual ‘two sessions’ in Beijing, where top officials are set to unveil economic strategies.

Top Asian News

• China overhauled a key micro credit program in which the focus is shifting to longer-term income support for rural households from a prior focus on poverty alleviation.
• Macau gaming revenue in February rose 4.5% Y/Y to MOP 20.6bln (exp. 1% growth).
• DeepSeek is to release the long-awaited DeepSeek 4 model in the week ahead.

European bourses (STOXX 600 -1.3%) are entirely in the red due to instability in the Middle East. In brief, the US-Israeli war with Iran has entered its third day, with all sides conducting large-scale airstrikes. Airspaces have been closed, oil refineries and tankers have been hit, and threats of further attacks continue (see “Iran Situation Report – Day 3” on the headline feed for more detailed analysis). The FTSE 100 (-1.0%) is being supported, albeit posting slight losses, helped by the major oil names (BP +1.8%, Shell +2.2%) as oil prices rise. The banking-heavy IBEX 35 (-2.2%) and FTSE MIB (-1.7%) have been hit the hardest on the prospect of increased war-risk claims.
From a sectoral perspective, Energy leads the pile, given the strength in underlying oil prices; Defence names are also stronger across the board, given the increased tensions; Rheinmetall +1.3%, BAE +5.2%, Leonardo +4.7%. One other key space of the market that has benefited is shipping names such as Maersk (+4.5%), Kuehne+Nagel (+0.4%), due to higher freight rates. US equity futures (ES -1.0%, NQ -1.4%, RTY -1.4%) have followed the global risk tone; in recent trade, contracts are attempting to rebound off worst levels, though remain significantly in the red. ASML (ASML NA) is planning to expand into advanced packaging for AI chips, and is exploring larger chip sizes and scanner systems

Top European News

• Top academics warned that planned cuts to physics and astronomy funding risk undermining a key government strategy to harness innovation to boost economic growth, according to FT.

FX

• DXY gains but trades off best levels as participants flock to the USD in light of the weekend geopolitics, with the initial US-Israel strike on Iran expanding throughout the Gulf and Middle East. Analysts at ING highlight three main channels that keep the USD in demand: 1) the US is less dependent on imported energy vs Europe and most of Asia. Higher energy hurts importers (EUR, JPY), whilst European Nat Gas opened up around 25%. 2) Markets are scaling back expectations for rate cuts from the Fed, with higher energy also proving headwinds for disinflation. A “bearish flattening” in the US yield curve (short-end yields rising) supports the dollar. 3) Higher energy and reduced Fed easing expectations could reverse capital flows into EM, which would further support the USD. DXY is around the middle of a 97.768-98.566 range after hitting highs around an hour after the European cash open.
• GBP is the worst performer amid the RAF base in Cyprus being struck by an Iranian drone. The UK has confirmed it is not participating in offensive operations but is permitting defensive use of bases. GBP/USD slipped from a 1.3456 peak to a 1.3314 trough.
• EUR has been hit by the aforementioned surge in energy prices, with EUR/USD slumping from near 1.1800 to lows of 1.1698 before trimming losses at the time of writing. ING suggests EUR/USD could slide back toward the 1.1575–1.1600 area if escalation continues.
• JPY and CHF are softer despite their haven appeals, with the USD sought after given its reduced dependency on energy imports. USD/JPY is +0.6% in a 156.04-157.25 range. USD/CHF trades +0.5% in a 0.7668-0.7742 parameter.
• Antipodeans also post losses amid their high-beta properties and sensitivity to risk. AUD/USD resides in a 0.7032-0.7117 range and NZD/USD in a 0.5928-0.5995 band.

Fixed Income

• USTs opened higher, then jumped to a session high of 114-12, before quickly paring much of the upside as the APAC session progressed. The narrative quickly shifted from “haven” related upside, to traders assessing and then pricing in the inflationary impacts of the closure of the Strait of Hormuz. This impacts both: a) energy prices, b) prices of goods which are subject to longer trading routes, as shipping giants avoid the chokepoint. From a central banking perspective, inflationary pressures could see policymakers shift hawkishly – though, Danske Bank suggested that the Fed is unlikely to trigger speculations of near-term policy shifts following the rise in energy prices. Geopols aside, the US ISM manufacturing survey for February is expected to be little changed at 52.3 (from 52.6). The Atlanta Fed will update its GDPnow tracking estimate, which is currently modelling growth of 3.0% in Q1. Later in the session, the Fed will publish its Senior Loan Officer Survey. USTs currently trade around 113-23 within a 113-22+ to 114-12 range.
• Bunds moving in-line with peers and currently trading around 130.05 to 130.53 range. Price action is similar to the above, initial haven flows buoyed German paper, before markets began factoring in inflationary impacts. Danske expect short-term widening Schatz spreads, but the bank highlights that safe-haven inflows are often short-lived and modest.
• Gilts are underperforming, and trades lower by around 30 ticks within a 93.31 to 93.57 range. Underperformance, which perhaps can be explained given that the region is a net-importer of oil, and as such has long been considered highly vulnerable to energy volatility. Elsewhere, ahead of this week’s UK Spring Statement, Chancellor Reeves has received a GBP 22bln windfall as tax receipts outperformed forecasts, according to Bloomberg; analysis of official data showed stronger than expected self-assessed income tax and sales levy revenues, alongside lower debt-interest spending, contributing to the improvement in the public finances.

Commodities

• Crude futures surged at the reopen in reaction to the geopolitical escalation in the Middle East owing to the strikes against Iran and the killing of its Supreme Leader, as well as its retaliation against the US and several neighbours in the Gulf, while it also announced the closure of the Strait of Hormuz. (Newsquawk analysis available on the feed). However, prices waned off their opening highs as Brent returned to beneath the USD 80/bbl and WTI briefly retreated to below 70/bbl levels before recovering, with Brent May’26 currently within USD 74.54-80.82/bbl (+6.2% at the time of writing) and WTI Apr’26 within USD 71.88-75.33/bbl (+7.3% at the time of writing).
• Spot gold rallied on a haven bid amid the weekend geopolitics (Newsquawk analysis available on the feed) but then mildly pulled back after stalling just shy of the USD 5,400/oz level in APAC trade, before mounting the level to a USD 5,419.15/oz peak. Spot silver hit a USD 92.42/oz peak from a USD 92.02/oz trough.
• Copper futures ultimately weakened overnight but trades flat in European hours, in choppy trade amid the mostly negative risk appetite in the region, with all focus on geopolitics. 3M LME copper resides in a narrow USD 13,249.60-13,444/t range at the time of writing.
• OPEC+ is to resume oil output increases, in which it will add 206k bpd in April. It had been previously reported over the weekend that OPEC+ could consider a larger production hike of as much as 441k bpd following the strike on Iran.
• IRGC declared the Strait of Hormuz closed to international navigation until further notice, while major tanker operators and global trading houses have halted crude, fuel and LNG shipments through the waterway. Furthermore, analysts warned of a potential Brent crude move above USD 100/bbl if the blockade persists.
• Oil facilities of regional countries are not Iran’s targets, via Mehr.
• Chevron (CVX) said it was instructed by Israel’s Ministry of Energy to temporarily shut-in production at the Leviathan gas production platform.
• Middle East crude benchmark Dubai’s premium rises to around USD 5.90/bbl, the highest since 2022, sources say.
• IAEA Director General Grossi said we have no indication that any of Iran’s nuclear installations have been damaged or hit. The situation is very concerning, cannot rule out a possible radiological release with serious consequences. No elevation of radiation levels above the usual background levels have been detected so far in countries neighbouring Iran.
• Saudi Energy Ministry says limited fire at Aramco’s Ras Tanura refinery, no impact on supplies.
• The limited fire at Ras Tanura refinery was due to shrapnel falling during an interception operation, Al Hadath reported.

Central Banks

• BoJ Deputy Governor Himino said to raise rates if economic outlook is met, adds the goal is to maintain price stability by avoiding excessive inflation and deflation, thereby supporting sustainable economic growth. said:Impact of rate hikes has been limited so far.
• SNB states that in view of the international situation, we are more prepared to intervene in the FX market.
• Swiss Sight Deposits (w/e Mar 1). Domestic Banks CHF 440.5bln (prev. 440.6bln), Total CHF 459.8bln (prev. 457.6bln).

Geopolitics: Middle East

• Israeli military says it has begun additional strikes on Tehran.
• Qatar Defence Ministry says it intercepted two Iranian drones, which targeted energy facilties; one drone headed towards QatarEnergy’s Raf Laffan facility
• “Israel army said there is no reason for Lebanon ground invasion for now”, via Al Arabiya citing AFP.
• Israel’s IDF said “We are discussing the option of carrying out a ground operation inside Lebanon”, via Al Jazeera.
• Iran’s ambassador to the IAEA said Israel and the US attacked Iranian nuclear facilities on Sunday.
• Iran’s Larijani said they will not negotiate with the US.
• Iran’s Secretary of the Supreme National Security Council Larijani said US President Trump has brought chaos to the region with “false whims” and is now worried of more casualties among US forces. Trump is sacrificing American soldiers for Israel’s quest for power.
• Iran warns that those responsible for killing Supreme Leader Khamenei will face consequences.
• US President Trump said he could lift sanctions on Iran if its next leader proves pragmatic, according to New York Times. said:He had three very good choices for next Iran leader.
• US President Trump said the people he considered for Iran’s next leader died in the air attacks, according to ABC News.
• US President Trump said Iran does not want to go quite far enough and it’s too bad and are not happy with Iran negotiation.
• US Secretary of State Rubio designating Iran as state sponsor of wrongful detention; Iran must stop taking hostages; will consider other measures if Iran does not stop.
• US State Department said no American should travel to Iran for any reason and reiterate their call for Americans who are currently in Iran to leave immediately.
• Hezbollah reportedly fires rockets towards Northern Israel for the first time since the ceasefire agreement, according to Israel Broadcasting Corporation.
• Omani Foreign Minister said “The single most important achievement, I believe, is the agreement that Iran will never, ever have a nuclear material that will create a bomb…”, according to CBS interviewing Albusaidi. “

Geopolitics: Ukraine

• Ukraine President Zelensky says long war in Iran may impact air defence for Ukraine.
• Russia is said to consider a halt in peace talks unless Ukraine cedes land. Talks planned for the week ahead will be decisive on whether or not the sides can agree on terms to end the war, while Russia will likely walk away if Ukrainian President Zelensky fails to make the concession.
• A fuel terminal in Russia’s Novorossiysk is on fire, according to local authorities.

US Event Calendar

• 9:45 am: United States Feb F S&P Global US Manufacturing PMI, est. 51.35, prior 51.2
• 10:00 am: United States Feb ISM Manufacturing, est. 51.5, prior 52.6
• 10:00 am: United States Feb ISM Prices Paid, est. 60, prior 59

DB’s Jim Reid concludes the overnight wrap

Those who read my EMR on Friday will appreciate that frantic emails around a major international conflict were an interesting additional challenge to try to squeeze into a packed weekend of “daddy childcare”. By now, there is little point in recapping much of the news around the strikes on Iran, so instead we’ll jump straight into the latest market reaction.

As regular readers will know from the work we have shared from DB’s Binky Chadha, the negative market impact of notable geopolitical events is usually measured in only days and weeks, and you could argue that the market has increasingly realised this and now reacts less to big geopolitical events than it may have done a few years ago. However, one persistent risk is always a prolonged impact on the oil price. As such, that is the main market to watch today and for the duration of this episode. How firmly, or officially closed, the Strait of Hormuz remains will probably play a big part in this. 

So far, Brent is about +7% higher at $77.60/bbl as I type this morning, having briefly been as high as $82 as trading in Asia opened. The spike comes as tanker traffic via the Strait of Hormuz has largely stopped with Iran having attacked three oil tankers over the weekend, though Iran’s foreign minister said on Sunday that Iran was not seeking to close the strait. There is a view that ahead of the mid-terms, the US administration will do what they can to ensure Iran struggles to block the Strait for long. Investors will also be watching the extent of damage to Iran’s oil export facilities. 

Meanwhile, OPEC+ yesterday announced a supply increase of 206k barrels a day in April, following an increase of 137k a day in December. This is a decent rise, but it would not change the bigger picture if there were a sizeable disruption to oil flows.

With most markets closed over the weekend, Bitcoin served as a barometer of sentiment and immediately dropped around -4% when news of the attacks broke early London time on Saturday morning. From these lows, it rebounded around 7% through Saturday and into Sunday as mounting speculation that Supreme Leader Khamenei had been killed was confirmed. This raised hopes of a decisive operation with an obvious ending. As things stand, Bitcoin is about -2% down off these highs, but still +2% above where we were just before the strikes.

Market sentiment bounced shortly after the Asia open amid some more encouraging reporting. According to the New York Times, Trump said that he was open to lifting sanctions on Iran if its new leadership was pragmatic though he also said that the US could keep up its campaign against Iran for “four to five weeks”. Meanwhile, the Wall Street Journal reported that Ali Larijani, the secretary of Iran’s Supreme National Security Council who’s seen as leading Iran’s current effort, made a fresh push to resume nuclear talks with Washington via Omani mediators. However Larijani has poured some cold water on this on X, stating that “We will not negotiate with the United States.” This has taken oil off its lows for the session.

With the US unlikely to put boots on the ground, it’s not clear if full regime change is achievable and its outcome would be highly unpredictable, which naturally leaves questions of whether a negotiated resolution can still be found. At the same time, we’ve seen a widening of the conflict to Lebanon overnight, with Israel striking targets in the country after Hezbollah fired rockets into Israel.

So that all leaves global markets with a clear but not extreme risk-off reaction this morning. S&P 500 futures are down -0.81% from Friday’s close, with those on the STOXX 50 down a larger -1.47%. Note that Europe is more negatively exposed to higher energy prices, including also possible disruptions to LNG shipments from the Gulf. Meanwhile, in Asia, the Hang Seng (-1.59%) and the Nikkei (-1.51%) are among the worst performers, also affected by declines in technology stocks. The Shanghai Comp has turned positive (+0.33%). In FX, the dollar index is +0.29% higher, while the Swiss Franc is the best performing G10 currency amid the safe-haven demand. And gold is +1.41% higher. For Treasuries, yields initially opened a touch lower amid the safe-haven bid but this has quickly reversed this morning with the 10yr +2.8bps higher at 3.97%, after ending last week at post-2024 lows. So overall fairly measured response in Asia to the weekend events. 

Outside the obvious and huge attention on the Middle East, the key focus this week will be on the US jobs report on Friday, retail sales on the same day, the ISM indices (today and Wednesday), and the Fed’s Beige Book, also due on Wednesday. European releases will include inflation data tomorrow and the ECB’s accounts of their February meeting on Thursday. Various global PMIs are also out this week.
In politics, highlights include the Two Sessions in China as well as the Spring Statement in the UK. Earnings reports will be due from Costco and Broadcom.

Delving deeper into the US data, the most important release in the week ahead is Friday’s February employment report. Our economists forecast headline payroll growth of 30k, down from 130k previously, with private payrolls rising by 50k after January’s unusually strong 172k gain. The moderation largely reflects payback from outsized hiring last month in private education and health services and construction, where job gains more than doubled their six month averages. Elsewhere in the establishment survey, our economists expect average hourly earnings to rise 0.4% month over month, unchanged from January, while the average workweek remains steady at 34.3 hours.

The household survey adds an additional layer of uncertainty this month, as the BLS implements its delayed annual population controls. Our economists forecast the unemployment rate at 4.3%, though risks around this estimate are elevated in both directions. January data will also be revised using the new controls, and attention will be focused on whether these adjustments meaningfully alter unemployment rates across demographic groups, particularly among younger cohorts, where concerns around entry level hiring remain heightened.
Friday also brings January retail sales, where weather related weakness in auto sales is likely to weigh on the headline figure. Our economists expect headline sales to decline 0.6%, with sales excluding autos down 0.1%, partly reflecting lower gasoline prices. That said, retail control sales are forecast to rebound by 0.3%, pointing to a firmer underlying pace of goods consumption. Tax refunds should provide additional support to spending in coming months, with the average refund running meaningfully higher than a year ago.

Ahead of Friday, several other releases will help set the tone. Our economists expect today’s manufacturing ISM to edge up to 53.1 from 52.6. Wednesday brings the ADP employment report, forecast at 50k (though seasonals might push it higher), alongside the non manufacturing ISM, seen at 54.0.

Other notable data include February unit motor vehicle sales tomorrow, which our economists expect at 15.1 million, potentially restrained again by adverse weather. Thursday’s preliminary Q4 productivity and unit labour cost figures are forecast at 1.3% and 2.2%, respectively.
Moving to Europe, the focus will continue to be on inflation, with February prints due for the Eurozone and Italy tomorrow, Switzerland on Wednesday, and Sweden on Thursday. ECB speakers will include President Lagarde today, and the central bank will release the accounts of its February meeting on Thursday.

In the UK, attention will be on the Spring Statement delivered by the Chancellor tomorrow, and our UK economist previews it here. There will also be the February DMP survey from the BoE on Thursday.

Over in Asia, the spotlight will be on China’s annual Two Sessions starting Wednesday (running through March 11), followed by the National People’s Congress session opening on Thursday, with the 15th Five Year Plan expected. Elsewhere, data highlights will include the February PMIs, both the official and private gauges, in China on Wednesday.

In Japan, our Chief Japan economist highlights the Shunto wage demands due on Thursday as the most anticipated event next week and expects wage demands this year to come in at 6.0%. There will also be the Financial Statements Statistics of Corporations (MoF survey) for Q4 on Tuesday, as well as the February consumer sentiment index on Wednesday. For more detail and forecasts, see our Chief Japan economist’s week ahead for the country here.

Earnings will include tech firms Broadcom, CrowdStrike and Marvell. US consumer firms will continue to be in focus, with reports from Costco and Target.

Looking back at last week, which now feels like a long time ago, the main theme was the ongoing AI disruption narrative, which continued to affect a range of assets. In part, this reflected the now infamous memo from Citrini Research, which outlined a hypothetical scenario in which AI adoption drove the US unemployment rate into double digits by mid 2028. We also had Nvidia’s earnings, which once again failed to deliver the kind of positive surprise markets had grown used to in 2023–24, even as they beat analysts’ estimates. Against this backdrop, the S&P 500 fell -0.44% (-0.43% on Friday), with the Magnificent 7 down -1.80% (-1.41% on Friday). The Philadelphia Semiconductor Index fell -1.96% (-1.21% on Friday), ending a run of 10 consecutive weekly gains.

Performance outside the US was notably stronger. The STOXX 600 posted a fifth consecutive weekly gain of +0.52% (+0.11% on Friday), closing at a record high. In Japan, the Nikkei rose +3.56% (+0.16% on Friday) to also hit a new record, taking its year to date gains to +16.91%.

The biggest news on Friday was rising concern about a possible US strike against Iran, which added further upward pressure on oil prices. Brent crude ended the week up +1.00% (+2.45% on Friday) at a seven month high of $72.48/bbl. It was also another strong week for precious metals, with gold prices up +3.36% (+1.81%) in their fourth consecutive weekly gain, and both are obviously seeing significant action again this morning.

Finally, in fixed income, sovereign bonds benefited from the broader caution. Ten year Treasury yields fell -14.4bps last week (-6.4bps on Friday) to 3.94%, their lowest level since October 2024. In Europe there were similar moves, with 10 year Bund yields down -9.4bps last week (-4.7bps on Friday) to 2.64%, marking their biggest weekly decline since April last year around the Liberation Day turmoil. Credit spreads widened on both sides of the Atlantic, with US high yield up +21bps (+9bps on Friday) and US investment grade up +7bps (+2bps on Friday), their biggest weekly widening since the Liberation Day tariffs. In Europe, high yield widened +13bps (+5bps on Friday), while investment grade widened +5bps (+3bps on Friday).

A drone strike forced Saudi Aramco to suspend operations at its Ras Tanura complex while damage assessments are underway on Monday, reviving a 2024 warning we issued that any successful Iranian or Iran-backed militia strike on critical Saudi refining infrastructure could trigger a global oil shock and, in a more severe scenario, set the stage for a broader financial crisis (reminder credit markets are already cracking). 

Sources familiar with the drone attack on the Ras Tanura complex told Bloomberg News that Saudi Arabia’s largest oil refinery “came under attack by a drone” and “halted operations as a precaution while it assesses damage.”

Footage of the aftermath of the drone strike on the Ras Tanura complex was published on X.

JUST IN: 🇸🇦 Iran strikes Saudi Arabia’s Aramco Ras Tanura oil refinery. pic.twitter.com/eTmPGRFAY5

— BRICS News (@BRICSinfo) March 2, 2026

Saudi Arabia released a statement in the state-run Saudi Press Agency stating that the damage was “limited” and that a fire was caused by the interception of two drones. The government said the drone attack and resulting missile interceptors did not cause civilian injuries.

The attack on Ras Tanura will ring alarm bells across the energy space because the complex is not just a refinery; it’s also part of Saudi Arabia’s most important oil hubs. It’s a central Persian Gulf terminal with a port able to handle the largest tankers, and Reuters notes that the refinery sits within a Gulf coast energy complex that also serves as a critical Saudi crude export hub. 

For the crude products market, the refinery is massive. Reuters notes Ras Tanura’s refining capacity at about 550,000 barrels per day, so any outage can tighten the supply of gasoline, diesel, and other refined products, especially across Gulf, Asian, and European markets. 

For the crude market, the bigger issue is the surrounding export infrastructure. Saudi Arabia is a leader in global flows, and EIA says Saudi crude and petroleum product exports made up 34% of OPEC crude exports and 26% of OPEC petroleum product exports in 2023. That means any downtime at these critical Saudi loading/refining hubs can quickly spark turmoil in global crude markets. 

“The attack on Saudi Arabia’s Ras Tanura refinery marks a significant escalation, with Gulf energy infrastructure now squarely in Iran’s sights,” Torbjorn Soltvedt, principal Middle East analyst at risk intelligence company Verisk Maplecroft, said, who was quoted by Bloomberg. 

Soltvedt noted, “The attack is also likely to move Saudi Arabia and neighbouring Gulf states closer to joining US and Israeli military operations against Iran.”

Meanwhile…

In March 2024, David Asher, a senior fellow at Hudson Institute and former investigator into Covid origins at the State Department, penned a report titled “Navigating the New World Disorder: Economic Faultlines, Fissures, Fractures, and Failures.”

In the note, Asher pointed to a world that is in crisis, similar to the 1920s/30s.

More importantly, he warned that in the event Iran or Iran-backed militias begin targeting Saudi Arabia’s crude processing facilities, this could unleash a “Global oil shock could trigger a crisis ala 2007-2008.”

Important to note, and simultaneously, private credit markets are cracking, as we penned last night:

• Goldman Derivatives Desk: “Signs Of Fear & Contagion Are Everywhere, But It’s Credit That Is Scariest”

In the overnight, Brent crude futures surged 13% to above $82 a barrel. By 0730 ET, crude futures were trading around the $79 handle. Now, ICE gasoil futures surged 20% on news of the drone strike at Ras Tanura. 

By late 2024, Asher penned an op-ed in the Wall Street Journal titled “A Strategy for Striking Back at Iran“…

Asher’s roadmap (read here) of how the US would dismantle the Islamic Revolutionary Guard Corps played out this past weekend in Operation Epic Fury.

Submitted by Thomas Kolbe

A year of tariff disputes with the U.S., coupled with tighter climate regulations, has left deep marks on the German economy. The most visible consequence is a 17.8% collapse in German car exports to the United States last year. Overall exports to the U.S. fell 9.4% to €146.2 billion, while total trade volume dropped by 5%.

At the same time, China has returned as Germany’s top trading partner. Total trade rose 2.1%, but beneath the surface, tensions are severe: German exports to China fell 9.7% to €81.3 billion, while imports surged 8.8% to €170.6 billion. Germany has become a major importer of Chinese capital goods, especially in computing and electrical equipment, even overtaking Chinese companies in traditional machine-building sectors.

The diagnosis is clear: a severe structural ailment caused by years of disastrous policy frameworks. Germany is losing know-how—or has already ceded it to more dynamic global locations. The era when domestic social issues could be papered over by a strong economy is over. Germany’s social-industrial model, built on engineering excellence, social market principles, and partnership, is history.
The short-lived industrial rebound the government celebrates is merely an expensive, debt-financed stimulus. The only booming sector is defense, producing neither consumer goods nor real value for ordinary citizens. Here, lobby interests are served at the expense of future taxpayers, providing politicians with fleeting talking points for the 2026 election year.

Shifting the Strategic Matrix

Global trade shifts are restructuring the EU and Germany in fundamental ways. What once seemed manageable now reveals deep vulnerabilities. Europe’s energy dependence, worsened by political missteps, is striking: roughly 60% of its energy must be imported. This limits geopolitical maneuverability, particularly in the Middle East, and will likely force Russia’s reintegration into Europe’s energy mix over time.
Rhetoric from Brussels, including EU Foreign Affairs Chief Kaja Kallas, cannot override these realities. The idea that Europe can free itself solely through renewable expansion is naive; it risks an economic disaster reminiscent of Germany’s deindustrialization. Europe must invest heavily in available energy sources, develop domestic resources, and use existing gas and coal as a bridge, while modern nuclear technology is deployed to regain strategic energy sovereignty.

Trade policy exposes another harsh truth: Europe’s centralist economic model, coupled with its obsessive Net-Zero-Emissions approach—ignored globally—acts like abruptly slamming the brakes on a finely tuned high-speed engine. Regulatory overreach and fiscal burdens have eroded productivity, leaving citizens poorer while rivals like China exploit every advantage.

It is practically impossible to curb China’s heavily subsidized export engine through tariffs alone. Structural asymmetries are too great. China can deploy leverage at any time—for instance, restricting rare-earth exports—if Europe tries to shield its markets from Chinese dumping. U.S. deregulation and targeted investment in Germany’s key sectors, especially automotive and machinery, exacerbate the challenge. The ongoing outflow of direct investment, €60–100 billion annually, signals the historic failure of policies that have abandoned free markets in favor of moralistic central planning.

Europe must break free from its internal constraints, return to market-based principles, align more closely with the U.S., and anchor the future of European culture and economy in the Western Hemisphere. Reintegration of Russia into the energy equation is equally essential for a realistic global perspective.

Food prices remain one of the most persistent cost pressures for households worldwide. In 2026, grocery bills are projected to rise sharply in some countries, while remaining relatively stable in others.

According to new forecasts from the UN’s Food and Agriculture Organization (FAO), food inflation will vary dramatically across 160 countries in 2026, ranging from double-digit surges in some economies to outright price declines in others.

This map, via Visual Capitalist’s Dorothy Neufeld, ranks 160 countries by their projected year-over-year change in food prices, highlighting where households are likely to face the steepest increases in 2026.

The Countries Facing the Steepest Food Price Increases

Today, inflation pressures remain strongest in emerging and import-dependent economies.

Food inflation is influenced by currency movements, commodity prices, trade disruptions, and domestic supply conditions. Countries experiencing currency depreciation or ongoing economic instability tend to see sharper increases in food costs.

At the top of the ranking is Iran, where food prices are forecast to rise 55.9% year-over-year.

Iran’s currency depreciation and prolonged inflationary pressures have already pushed food inflation to extreme levels in recent years. The 2026 forecast suggests those pressures may persist.

Several Sub-Saharan African economies—including Nigeria (17.1%), Angola (14.8%), Zambia (10.8%), and Ethiopia (10.1%)—also rank among the highest. In many of these countries, food inflation is closely tied to currency volatility, import dependency, and supply-side disruptions.

Regional Differences in Food Inflation

While the global average is projected at 3.2%, the regional breakdown shows stark differences in how food prices are expected to evolve in 2026.

The Middle East and North Africa region stands out, with nearly triple the global average.

North America sits around the middle of the pack, with food prices projected to rise 4.3%. In the U.S., prices are expected to increase 2.7%, while in Canada, prices could climb at more than twice that pace.

Meanwhile, much of Asia-Pacific is projected to see relatively modest food price growth.

While global food inflation is expected to fall in the single digits in 2026, the regional picture tells a far more uneven story. For millions of households in high-inflation economies, grocery bills may remain one of the most persistent economic pressures in the year ahead.

To learn more about this topic, check out this graphic on the U.S. cities with the highest grocery costs.

Three months after Australia banned minors under the age of 16 from accessing social media, Poland is preparing to do the same thing.

A bill is currently being prepared by the largest party in Poland’s ruling Civic Coalition Party that would prohibit children under the age of 15 from using social media platforms, and would require tech companies to verify users’ ages. 

Education Minister Barbara Nowacka laid out the plan on Friday, which include fines of up to 6% of the worldwide (global) revenue of social media companies if their services remain accessible to under-15s. 

“We need to limit access to social media for children under 15. At the same time, we need to work on mental health and raise awareness among children, parents, and the entire Polish society about the dangers of social media,” Nowacka said. 

If sped through legislation, Poland’s bill could take effect as early as 2027, however the coalition hasn’t fully signed off yet, and it will undoubtedly face legal pushback from US tech giants. 

As the Epoch Times notes further, on Dec. 10, Australia became the first country to impose nationwide restrictions on minors accessing social media, banning those under 16 from a dozen platforms.

The restrictions were brought in amid concerns over mental health, online harms, and screen addiction affecting Australian children.

Poland is the latest country in the European Union to say it was planning to introduce a ban or some other form of restriction, with other member states similarly citing concerns over children’s mental health.

In France, legislation is moving through parliament to ban children younger than age 15 from accessing social media platforms. Denmark and Slovenia are likewise looking at bans for under-15s.

Spain will follow Australia in banning social media for minors under age 16.

Portugal is taking a different approach. Rather than introducing an outright ban on children under a certain age from accessing social media, it aims to require explicit parental consent for children aged 13 to 16 to access the platforms.

Other countries around the world are making similar plans, including Malaysia, which says it will ban social media accounts for children younger than age 16 this year.

‘Age-Gating’ Social Media

British Prime Minister Keir Starmer announced a series of new proposals earlier this month aimed at protecting young people from social media addiction, including a proposed ban for under-16s, subject to a public consultation.

Some measures by the UK and the EU to curb online harms have led to tensions with the United States, home of many big tech companies, around issues of free speech and regulatory overreach.

Privacy and free speech advocates, such as UK-based Open Rights Group, say that a social media ban for under-16s would be an ineffective response to online harms.

The Open Rights Group says it would lead to “age-gating” across all social media platforms, requiring users to prove their age.

“Protecting children online should not mean building a surveillance infrastructure for everyone,” Open Rights Group spokesman James Baker said.

“We need regulation that puts users back in control, not policies that force people to trade their privacy and voice for access to modern life.”

Rachel Roberts and Reuters contributed to this report.

Authored by John Haughey via The Epoch Times (emphasis ours),

Five Persian Gulf nations that host U.S. military installations claim they have collectively shot down more than 1,500 Iranian missiles and drones since the United States and Israel launched their joint attack at 9:45 a.m. Tehran time on Feb. 28.

The United Arab Emirates (UAE)—whose forces have battled Tehran-backed Houthis in Yemen—has borne the brunt of the Iranian attacks.

While numbers are fluid and reported timelines varied, as of 6 p.m. ET on March 1—2:30 a.m. March 2 in Iran—the UAE Ministry of Defense reported it had knocked down 165 ballistic missiles, two cruise missiles, and more than 540 drones.

Debris from destroyed projectiles crashed into several Abu Dhabi residential neighborhoods, killing at least one civilian, the ministry reported, also stating that at least three people have been killed in Iranian strikes in UAE.

The attacks are “a blatant violation of national sovereignty and international law,” the ministry said in a statement, warning UAE would “take all necessary measures to protect its territory, citizens and residents, and to safeguard its sovereignty, security and stability.”

Bahrain’s military said March 1 that its air defense systems had intercepted at least 45 missiles and nine drones, with the U.S. Navy’s Fifth Fleet headquarters in Manama and a British navy base specifically targeted.

No casualties were reported at the U.S. and UK bases. British forces reported shooting down a drone in Manama. UK Prime Minister Keir Starmer on March 1 said the British have accepted a U.S, request to use its bases across the Middle East, including its large air base in Cyprus, to strike Iranian missile launchers.

Kuwait’s military reported it shot down nearly 100 missiles and almost 300 drones during the first 24 to 36 hours of the conflict.

The Iranian attacks focused on Ali Al-Salem Air Base where American and other international forces are stationed. Drones also struck Kuwait International Airport on Feb. 28, causing minor injuries and “limited damage.”

Italian Deputy Prime Minister Antonio Tajani, however, told Italian news outlet ANSA that a Kuwait International Airport runway sustained extensive damage.

Qatar’s Ministry of Defense said it shot down 65 ballistic missiles and at least 12 drones fired at it from Iran. “We possess the full ability to protect the country and fend off any external threat,” the Qatari ministry said, adding Qatar is “secure and stable,” although the country’s air space has been temporary closed to commercial traffic.

Two ballistic missiles struck the U.S. Al-Udeid Air Base causing no reported casualties and little damage, while a drone strike disabled an early warning radar installation.

Most U.S. Air Force airmen and aircraft normally stationed at Al-Udeid, including KC-135s in-flight refueling jets, C-17A Globemaster transports, and C-130 Hercules airlift transports, were moved to other bases in the Mediterranean and Diego Garcia in the Indian Ocean in the days preceding the attack.

Jordan’s armed forces reported March 1 that they had intercepted 13 ballistic missiles and knocked down nearly 50 drones targeting U.S. forces at Muwaffaq Salti Air Base.

“The armed forces engaged 49 drones and ballistic missiles targeting Jordanian territory today,” the Jordanian armed forces said in a statement, adding “13 ballistic missiles were successfully intercepted by Jordanian air defense systems, while drones were shot down.”

An undetermined number of missile and drone attacks have also been reported in Saudi Arabia, Iraq, and Syria.

U.S. forces at Harir Air Base in Erbil in northern Iraq’s Kurdistan area were attacked with missiles and drones with no casualties and little damage reported. British forces report they knocked down several missiles in Iraq.

Leaders from Germany, the UK and France are waving their fists over Iran’s “reckless” retaliatory strikes in the region, and say they’re ready to throw down to stop Tehran from further responses. 

On Sunday, German Chancellor Friedrich Merz, British Prime Minister Keir Starmer, and French President Emmanuel Macron stood in solidarity, saying in a joint statement that they were “appalled” by Iran’s “reckless” retaliatory strikes that targeted not only US and Israeli military sites in the region – but other allies as well (Dubai got the business, among others). 

“We will take steps to defend our interests and those of our allies in the region, potentially through enabling necessary and proportionate defensive action to destroy Iran’s capability to fire missiles and drones at their source,” the statement reads. “We have agreed to work together with the US and allies in the region on this matter.” 

British forces have already engaged – with a Typhoon fighter jet shooting down an Iranian drone with an air-to-air missile during a defensive air patrol in Qatar. 

As the Epoch Times notes further, Starmer addressed his nation on the matter later on March 1, revealing that he also granted a request from the United States to use UK bases in the region to attack Iranian missile sites. But he affirmed that this did not mean that he was tasking British armed forces to join the United States in offensive action.

“Iran has launched sustained attacks across the region, at countries who did not attack them,” Starmer said. ”They’ve hit airports and hotels where British citizens are staying. This is clearly a dangerous situation.”

The prime minister noted that at least 200,000 British citizens were in the Middle East, including residents, families on vacation, and others in transit.

He defended his government’s decision to allow the United States to use British bases to attack Iranian missile launchers and storage depots, calling it a “defensive” action and saying the only way the threat will be stopped is by destroying the missiles at their source.

“Iran is pursuing a scorched earth strategy, 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,” Starmer said.

Meanwhile, Merz announced on X that he would meet with U.S. President Donald Trump on March 3 to discuss the latest developments, noting that he remained in close contact with other European powers, Israel, and the affected region.

“Now is not the time for finger-pointing, but for unity and joint action,” he said.

The Associated Press contributed to this report.

Submitted by Thomas Kolbe

It took some time for the supposed difference between Annalena Baerbock’s feminist foreign policy and the approach that the diplomatic corps under Chancellor Friedrich Merz would take to become clear. What has changed is less the substance than the performative act. Under the Sauerland-born Merz, tone and gestures shifted—the staging is meant to appear more masculine, sober in style, perhaps more professional, less embarrassingly activist—but the content remains largely unchanged.

Ironically, arch-enemy Donald Trump became the spiritus rector of a new theatrical element in the Chancellor’s media showcase. In Trump-style, Friedrich Merz announced on February 25 the climax of his China trip: the conclusion of a major order for the European aerospace giant Airbus. China will acquire 120 aircraft, models A320, A350—details to follow later—ordered from the company that has become the most successful “success child” of the European project.

The Chinese hosts are politely attentive: they don’t let the Chancellor return home empty-handed and grant him quick fame in the 2026 super-election year. Images, headlines, pathos—the stage is set. The Chancellor as doer, as promoter of German and European interests, as a foreign-policy acquirer in global competition—a German Donald Trump?

A sober look at the numbers puts the theatrics in perspective. Year after year, Chinese customers fill Airbus’s order books with hundreds of aircraft. Major orders from China are no exception; they are part of a long-established procurement rhythm. Demand is structural, not spontaneous—the production slots had long been planned and coincided with the Chancellor’s trip by chance.

A media storm in Trump-style, with the small but crucial difference that the U.S. president returns from foreign trips with real investments in his industry’s production capacity. Factories are built, sites expanded, capital flows measurably into American value creation. Whatever the magic formula—tariffs, deregulated economy, robust growth—America attracts real investments, binding capital and industrial substance domestically.

Friedrich Merz, by contrast, presents routine industrial orders as personal triumphs. He frames scheduled large orders as the result of his diplomatic prowess—a German deal-maker in action. But the crucial difference is that for career politician Merz, only media impact counts. One brings production capacity home; the other brings press releases.

Let’s credit Merz: his trip falls during a critical election phase. In such moments, images, gestures, and quickly digestible wins matter. Fleeting triumphs feed the narrative of the doer in the chancellery, regardless of catastrophic domestic performance.

It is also reassuring that Germany continues to receive the highest protocol honors in China and that Beijing evidently values German history more than the sad present. Reception in the Great Hall of the People by Premier Li Qiang, a personal audience with President Xi Jinping, evening dinner, military welcome at the airport. The choreography is flawless: flags, honor guards, carefully staged images. Protocol-wise, Germany still plays in the Champions League.

Geopolitically, however, the picture is different. Merz called China a “strategic partner” before the trip without defining what this means in the current world situation. Beijing firmly backs Moscow in the Ukraine war. How does the Chancellor think the EU’s 20 sanction packages against Russia affect relations with Beijing? Every new measure against Russia is not just a signal to the Kremlin but also a geopolitical marker toward China.

Merz could personally observe China’s perspective on Germany and the EU’s growing isolation in geopolitics. Protocol pomp does not reverse strategic erosion. From Beijing’s perspective, the question is simple: what offer should one make to a delegation from a country that has weakened its industrial base through self-inflicted dismantling while simultaneously complaining about trade disadvantages?

The consequences of European eco-socialism are immense. Germany has become a net importer of capital in trade with China. The trade balance increasingly tilts against it. In key industrial sectors, competitive advantages have eroded; energy-intensive value creation is under pressure.

Against this backdrop, sympathy for the Chancellor and his economic representatives is limited. The misery is homegrown. Every new regulation, levy, or transformation mandate tightens industry further, reducing Germany’s flexibility in global competition.

In China—a political dictatorship under a single party but economically largely guided by market efficiency—German-European moralizing meets maximum incomprehension. There, scale effects, productivity, market share, and technological sovereignty matter. Moral self-assurance does not replace industrial strength.

Merz lamented unfair Chinese trade practices given Germany’s deep trade deficit. Market access must be fair, disadvantages avoided. The words sound determined, aimed at reciprocity in global trade. And they sound naive.

Because isn’t it worth asking whether Europeans have long been world champions of hidden protectionism? Whether German and European policies repeatedly sparked the grotesque race toward emission-free economies via maximal repression? Regulatory hurdles, taxonomies, supply-chain laws, CO₂ border adjustments—all form a dense mesh of indirect market barriers.

It is by no means China’s fault that Germany’s economic propulsion—industry, engineering, machinery, automotive—has, under EU regulations and energy-transition fanaticism, disassembled at accelerated speed. Those who systematically eliminate their own cost advantages lose ground globally and geopolitically.

Merz exemplifies a European political class eager to blame external actors for structural weaknesses. He is living proof that Europe and Germany have a long way to go before a brutally honest assessment of problems.

Flattering China and the apparent alignment on population surveillance and censorship expansion makes Europe, at best, an unloved vassal of Beijing.

Europe, as a cultural entity, should seek salvation in alignment with Americans. In the bastion of free markets, deregulation, and rational energy policy—in the land of ICE and Christian-humanist cohesion—lies the most likely, only acceptable future for European policy.

China sees Europe as a dumping ground for surplus production—Europe as a decaying heir of the colonial era. European markets absorb domestic overcapacity. Structural dependency on resources like rare earths and energy grows. The leverage is not in Europe.

The era of European dominance is over. Moral self-assertion against factual dependence? Helpless. Puerile. Expensively paid.

Friedrich Merz’s visit to China was a campaign appearance for the CDU. He followed diplomatic protocols but was substantively unremarkable. The images were staged; strategic impact remains limited. Europe deserves better policy.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Authored by Andrew Korybko,

The goal is to obtain proxy control over Iran’s enormous oil and gas reserves so that they can be weaponized as leverage against China for coercing it into a lopsided trade deal that would derail its superpower rise and therefore restore US-led unipolarity.

Trump claimed that the US’ military campaign against Iran is to “defend the American people”, while many critics have alleged (whether in jest or not) that it’s to distract from the Epstein Files, but few observers realize that it’s actually all about China. It was explained here that Trump 2.0 “decided to gradually deprive China of access to markets and resources, ideally through a series of trade deals, in order to imbue the US with the indirect leverage required to peacefully derail China’s superpower rise.”

To elaborate, “The US’ trade deals with the EU and India could ultimately result in them curtailing China’s access to their markets under pain of punitive tariffs if they refuse. In parallel, the US’ special operation in Venezuela, pressure on Iran, and simultaneous attempts to subordinate Nigeria and other leading energy producers could curtail China’s access to the resources required for fueling its superpower rise.”

The resource dimension that’s relevant to Iran is a major part of the US’ “Strategy of Denial”.

That’s the brainchild of Under Secretary of War for Policy Elbridge Colby, and it was expanded on in this analysis here from early January.

As was written, “US influence over Venezuela’s and possibly soon Iran’s and Nigeria’s energy exports and trade ties with China could be weaponized via threats of curtailment or cut-offs in parallel with pressure upon its Gulf allies to do the same in pursuit of this goal”, which is to coerce China into indefinite junior partnership status vis-à-vis the US through a lopsided trade deal.

Most observers missed it, but the new National Security Strategy calls for ultimately “rebalance[ing] China’s economy toward household consumption”. This is a euphemism for radically re-engineering the global economy through the previously described means, namely curtailing China’s access to the markets and resources responsible for its superpower rise, so that it no longer remains “the world’s factory” and thus ends its era of being the US’ only systemic rival. US-led unipolarity would then be restored.

Circling back to Iran, “[it] represented about 13.4% of the total 10.27 MMbpd of oil [that China] imported by sea” last year per Kpler, hence why the US wants to control, curtail, or outright cut off this flow. ‘Plan A’ was to achieve this through diplomatic means for replicating the Venezuelan model that entered into effect after Maduro’s capture. Iran flirted with this but didn’t commit since it would entail the country’s strategic surrender, ergo why Trump authorized military action for achieving this instead.

In pursuit of this, Trump promised the IRGC in his video announcing his country’s military campaign against Iran that they’d have immunity if they laid down their arms. This reinforces the abovementioned claim that the US wants to replicate the Venezuelan model since it strongly suggests that he envisages newly US-aligned IRGC running Iran in the political interim before new elections just like the newly US-aligned Venezuelan security services run their own country during their own current political interim.

Such a scenario would avert Iran’s possible “Balkanization”, thus preserving the state so that it can then resume its prior role as one of the US’ top regional allies, which might then aid the Azeri-Turkish Axis’ efforts to project Western influence along Russia’s entire southern periphery. In that event, the US would simultaneously obtain unparalleled resource leverage over China via proxy control of Iran’s oil and gas industries while tightening its encirclement of Russia, which would deal a powerful blow to multipolarity.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.

Via The Cradle

The unprovoked US-Israeli war against Iran launched on Saturday had “been planned for months, and the ⁠launch date ⁠decided ⁠weeks ago,” even as the US and Iran carried out indirect nuclear negotiations, an Israeli defense official told Reuters.

Washington and Tel Aviv renewed negotiations in February over Iran’s nuclear program. President Trump was under pressure from Israel force Iran to give up uranium enrichment, as well as its ballistic missile program and support for regional resistance forces (such as the pro-Iranian Iraqi popular mobilization units, and Hezbollah, etc). Amid the negotiations, Trump sent an “armada” of US naval ships and warplanes to the region, threatening to launch an attack if officials in Tehran refused to make a deal. After the latest round of talks on Thursday, a senior US official told Axios the talks were “positive.”

Omani Foreign Minister Badr Albusaidi, who mediated the talks, said the talks had shown “significant progress.” Iranian Foreign Minister Abbas Araghchi also expressed optimism, saying both sides had shown a “clear seriousness” about getting a deal. However, the US and Israel launched large-scale attacks against Iranian targets early Saturday, suggesting the negotiations had never been serious. In the wake of the attacks, Omani Foreign Minister Albusaidi said that the negotiations he mediated had been “deliberately undermined.”

Mehran Kamrava, director of the Iranian studies unit at the Arab Center for Research and Policy Studies and professor at Georgetown University in Qatar, stated that Israel “appears to have launched an attack designed to derail the negotiations.“

A planning document prepared years ago by the US think tank Brookings Institution provided a blueprint for regime change in Iran that outlined such a strategy. 

“Which Path to Persia? Options for a New American Strategy Toward Iran,” written by analysts at the Brookings Institution in 2009, recommended that the US carry out negotiations ahead of a planned attack to give the false impression that the US had done everything possible to avoid war.

Iran could then be blamed for rejecting a “good deal,” thereby shifting blame onto the Islamic Republic for what would be an unpopular war both among the US public and internationally.

“The best way to minimize international opprobrium and maximize support (however, grudging or covert) is to strike only when there is a widespread conviction that the Iranians were given but then rejected a superb offer—one so good that only a regime determined to acquire nuclear weapons and acquire them for the wrong reasons would turn it down,” the document stated.

“Under those circumstances, the United States (or Israel) could portray its operations as taken in sorrow, not anger, and at least some in the international community would conclude that the Iranians’ brought it on themselves’ by refusing a very good deal,” the document added.

🇺🇸/Iran: The US is going to attack Iran as soon as preparations are final and if Iran and its allies fail to sufficiently deter US aggression.

There were never any real negotiations.

The decision to attack Iran was made in the 1970s when Iran rightfully ousted the US… pic.twitter.com/v0CsZmP6mB

— Brian Berletic (@BrianJBerletic) February 20, 2026

After the start of the US and Israeli strikes, Iran’s Islamic Revolutionary Guard Corps (IRGC) launched barrages of ballistic missiles and drones at targets in Israel and US bases in the region.

Damage to targets within Israel is difficult to assess due to media censorship imposed by the Israeli military. However, sirens were heard across Israel as the military issued a “proactive alert to prepare the public for the possibility of missiles being launched toward the state of Israel.”

The military announced the closure of schools and workplaces, with exceptions for essential sectors. The Israel Airports Authority announced its airspace had been closed to all civilian flights.

One official describes Kushner reading the Iranian 7 page proposal, which they say the US team could not take with them. It does not sound like they understood even a symbolic minimal research enrichment proposal at all, not just as not good enough, but as sinister

— Laura Rozen (@lrozen) February 28, 2026

Amid the Iranian attacks, Israel’s energy sector shifted into emergency mode. Israel’s energy ministry instructed Greek firm Energean to temporarily suspend production at its offshore Karish gas field.

The ministry also ordered the closure of the country’s largest gas field, Leviathan, as a precautionary measure. Some units of the Haifa oil refinery were also shuttered.

* * *

Iranian FM statement:

https://t.co/otRcg14Y0h

A deal was within reach. We left Geneva with understanding that we’d seal a deal next time we meet. Those who wanted to spoil diplomacy succeeded in their mission. But it was Mr. Trump, yet again, who ultimately ordered bombing of the negotiating table.

— Seyed Abbas Araghchi (@araghchi) March 1, 2026