Israel says it will keep control over part of southern Lebanon after war with Hezbollah ends

Israeli air strikes targeted three Beirut neighborhoods and southern Lebanon on Tuesday, as fighting intensifies between Israel and Hezbollah. Lebanese state media reports the attacks hit Kafaat, Haret Hreik, and Doha Aramoun in Beirut, with Israel confirming it targeted Hezbollah. The strikes in Aramoun hit a residential building, reportedly in an attempted targeted assassination. Since the renewed fighting began over two weeks ago, Israeli attacks have killed at least 886 people in Lebanon, including women and children, and wounded 2,141. Lebanon reports that over one million people have been displaced due to the ongoing conflict.

Tensions have escalated in the Middle East, with Iran intensifying attacks on Gulf energy facilities following an Israeli strike on an Iranian gas field. Kuwait reported a drone attack that sparked a fire at an oil refinery. The conflict has effectively closed the Strait of Hormuz, a critical waterway for global oil transport, trapping a large percentage of crude and refined products within the Persian Gulf. Simultaneously, fighting has renewed between Israel and Hezbollah, with Israeli strikes hitting both southern Lebanon and Beirut, including city center neighborhoods. These events suggest a widening conflict with potential global economic consequences due to disruptions in oil supply.

The article reports on escalating tensions in the Middle East and their global impact. Donald Trump threatened to destroy the South Pars gas field, shared by Iran and Qatar, if Iran retaliates against Qatar's LNG facilities. Trump stated the US was unaware of Israel's prior attack on the field and warned against further Iranian aggression towards Qatar. The conflict is impacting global markets, with concerns of stagflation unsettling investors, particularly in Asia. Cathay Pacific has suspended flights to and from Dubai until the end of April due to the ongoing crisis. Additionally, a ship was attacked off the coast of the UAE near the Strait of Hormuz, further highlighting the instability in the region.

Qatar's Foreign Ministry condemned an Iranian missile attack on the Ras Laffan Industrial City, a major gas facility, causing a fire and "extensive damage." The attack, which occurred on Wednesday, prompted a response from civil defense teams, though QatarEnergy reported no casualties. This incident follows Iran's threat to target Gulf region oil and gas facilities, including Ras Laffan, in retaliation for alleged Israeli attacks on Iranian gasfields. Qatar considers the attack a violation of its sovereignty and a threat to its national security. The incident also follows Qatar's suspension of LNG production on March 2 after attacks on the Ras Laffan facility and a power plant in Mesaieed Industrial City.

According to Israeli national security sources, Iran's new supreme leader, Mojtaba Khamenei, son of the late Ayatollah Ali Khamenei, is not effectively controlling the regime. Since his father's death in late February, Mojtaba has not made any public appearances, with some reports claiming he was injured in the strike that killed his father. Despite Iranian officials' claims of good health, sources suggest Mojtaba is an "empty entity" and the Iranian leadership is "broken" and "misfunctioning." A message attributed to Mojtaba was broadcast on Iranian state TV, vowing revenge for recent Israeli strikes that have killed several senior Iranian officials, including Ali Larijani and Gholamreza Soleimani. These strikes are part of what the IDF describes as a continuing and successful effort.

On March 18, 2026, Iran confirmed the death of its national security chief, Ali Larijani, following an Israeli air strike. This comes less than three weeks after the death of Ayatollah Ali Khamenei in US-Israeli strikes. Israel has vowed to "neutralize" the new Supreme Leader, Mojtaba Khamenei. Larijani, a close confidant of the late Ayatollah, played a key role in Iran's retaliatory actions during the ongoing war in the Middle East. The assassination occurred amidst rising tensions, with Iran threatening shipping in the Strait of Hormuz and the US criticizing allies for not assisting in escorting oil tankers.

Oil prices surged after an Israeli strike on Iran's South Pars gasfield, the world's largest, located off the coast of Bushehr province. Brent crude rose 5% to $108.66 a barrel, while US West Texas Intermediate crude gained 2.5% to $98.65. The attack prompted Iran to threaten retaliatory strikes on energy infrastructure in Qatar, Saudi Arabia, and the UAE, and Qatar reported a fire at its Ras Laffan gas facility after an Iranian missile attack. Disruptions to Middle Eastern oil and gas exports, including halted shipments via the Strait of Hormuz, have led to estimated output cuts of 7-10 million barrels per day. Experts fear prolonged elevated prices could trigger global inflation.

The South China Morning Post reports that escalating conflict between the US-Israel alliance and Iran is threatening global energy infrastructure and causing oil price volatility. Recent events include strikes on Iran's South Pars natural gas field and retaliation against Qatar's LNG facility, alongside threats to Saudi Arabia and the UAE. The Strait of Hormuz, a vital energy waterway, is reportedly closed. As a result, international oil prices have surged, with Brent futures reaching between $113 and $115. US officials warn of potential economic hardship for consumers due to rising oil prices. The article examines these developments and their potential impact on the global economy.

Despite ongoing conflict, Iran continues to export millions of barrels of oil. Approximately 90 ships, including oil tankers, have traversed the Strait of Hormuz since the war began. The Associated Press reported the activity on March 12, 2026, with images showing ships in the Strait of Hormuz and at the Mumbai Port in India. The Strait of Hormuz, a crucial waterway for oil transport, remains a key route for Iranian exports despite the ongoing war. The continued oil exports suggest Iran's efforts to maintain its economy amidst conflict.