Dark haze over Tehran as US-Israeli forces bomb oil storage facilities

As of March 5, 2026, a war in Iran has sparked a global oil and gas crisis, potentially benefiting the United States and other Western exporters. The crisis stems from disruptions in the Strait of Hormuz, a vital shipping route for oil and LNG, and attacks on energy infrastructure in Gulf countries. Iran's Islamic Revolutionary Guard Corps (IRGC) declared the Strait "closed" after several tankers were damaged, causing oil and gas prices to surge. Approximately 150 ships are stranded, and about 10% of the world's container ships are caught in backups, potentially leading to cargo pile-ups in Europe and Asia. Qatar's energy infrastructure has also been attacked, further exacerbating the crisis.

A war with Iran has disrupted global energy trade, particularly impacting Asia due to its reliance on imported oil and natural gas shipped through the Strait of Hormuz. The Strait is a critical passageway for a fifth of global crude oil and liquified natural gas (LNG) trade. In 2025, 13 million barrels of oil per day moved through the corridor. Since the war began, the price of Brent crude has risen 15% to $84 per barrel. The U.S. President has stated the U.S. will offer risk insurance to shippers and may deploy its navy to protect vessels.

A UK government rescue flight scheduled to depart from Muscat, Oman on Wednesday to repatriate stranded British nationals was delayed due to operational issues related to boarding passengers. The chartered plane is now expected to leave on Thursday. This comes as 138,000 UK citizens have registered for assistance, with a majority located in the UAE, following escalating conflict in the Middle East, including missile strikes in Dubai. Approximately 1,000 Britons have already returned home on commercial flights. Two additional chartered flights are planned for this week. Many UK citizens were caught in the region during layovers or vacations as the conflict intensified, impacting travel and daily life.

On March 3, 2026, flames and smoke were observed emanating from the US Consulate in Dubai. The incident is suspected to be an attack. The event occurred amid reported Iranian retaliation for US-Israeli strikes. The specific nature of the attack remains unconfirmed. Authorities are likely investigating the cause and extent of the damage. Further details are awaited as the situation unfolds.

The Gulf states have launched retaliatory missile and drone strikes against Iran, targeting oil refineries in Saudi Arabia, a liquefied natural gas plant in Qatar, and trade and transit infrastructure in the United Arab Emirates. The attacks come after Iran's missile barrages struck these targets on Saturday, following US and Israeli attacks on Iran. The Gulf Cooperation Council member states had previously tried to mediate a way out of the conflict, but their efforts were unsuccessful. The retaliatory strikes signal that the region is no longer willing to absorb the hits from Iran's attacks. The Gulf states are now forced to consider a more proactive defense strategy against Iranian aggression. This shift in posture marks a significant change for the region.

On March 3, 2026, guests at a Dubai hotel were evacuated to a basement car park following Iranian missile strikes on targets within the United Arab Emirates. The evacuation was a precautionary measure to ensure the safety of the hotel's occupants during the attack. The news report indicates that the missile strikes were carried out by Iran, though the specific targets and reasons for the attack were not detailed in this brief report. The incident highlights escalating tensions in the Middle East and the potential impact on civilian populations and infrastructure.

Amid escalating conflict and soaring shipping costs, China has called for the protection of vessels in the Strait of Hormuz. The strait, a critical route for global energy supplies, has been effectively closed following missile attacks between the US/Israel and Iran, disrupting approximately 20% of global seaborne crude oil and gas. China, a major importer of Iranian oil, urged all parties to de-escalate tensions and ensure safe navigation. The closure has choked off energy exports from Middle Eastern producers, leading to potential shortages and price increases, impacting countries like India, Korea, Thailand, and the Philippines. Recent incidents include attacks on tankers in the region, further exacerbating the situation.

Insurance companies have cancelled war risk coverage for vessels in the Middle East Gulf due to the escalating United States/Israel-Iran conflict. The IRGC announced that the Strait of Hormuz was "closed" and any vessel attempting to pass through would be set ablaze. At least five tankers have been damaged, two personnel killed, and around 150 ships are stranded in the area. The disruption has caused oil and European natural gas prices to jump, with Brent crude futures increasing by up to 13%. The conflict has triggered multiple oil and gas shutdowns in the Middle East. Insurers cancelled war risk coverage after vessels were hit by drones and projectiles, leaving tankers damaged or stranded.

A drone strike caused a limited fire near the US consulate in Dubai on Tuesday, which has been extinguished. Dubai authorities confirmed the incident and stated that emergency teams responded immediately, reporting no injuries. A US official and Dubai's government media office told the Wall Street Journal that the drone struck the consulate's parking lot. The incident follows a drone strike on the US embassy in Saudi Arabia on Monday and the closure of the US embassy in Kuwait on Tuesday. The US State Department is working to help Americans in the Middle East leave, identifying charter, military, and expanded commercial flight options.

The conflict between Iran, the US, and its partners is intensifying in the Middle East, marked by waves of Iranian drone attacks. Iran is using inexpensive Shahed-136 drones, costing approximately $20,000, to target US bases, oil infrastructure, and civilian buildings in response to US and Israeli airstrikes. While US-made Patriot missiles have proven effective in intercepting these drones, the cost disparity – $4 million per missile versus $20,000 per drone – is rapidly depleting resources. The conflict's outcome may hinge on which side can sustain its munitions supply longer, as both Iran and the US risk running low on weapons within weeks. This situation highlights the challenge of countering cheap drone technology with expensive defense systems, a problem previously seen in the Ukraine war.

On March 2, 2026, Iran's retaliatory strikes against US assets in the Gulf region entered their third day, escalating fears of a prolonged conflict. Explosions were reported in Dubai, Doha, and Kuwait, with Kuwaiti air defenses intercepting drones near residential areas. Iran stated the attacks were in response to ongoing US-Israeli strikes on Iran, targeting US military assets and impacting civilian areas across Gulf cities. Bahrain activated air raid alerts and closed a major bridge. Casualties have been reported in Kuwait, the UAE, and Qatar, while US-Israeli attacks have resulted in significant casualties in Iran and Israel. The US, Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia, and the UAE jointly condemned Iran's attacks and affirmed their right to self-defense.

Following US and Israeli strikes that killed Iran's Supreme Leader Ayatollah Ali Khamenei, markets opened with a sharp sell-off in futures and Asian shares. Chinese satellite images taken on Sunday by the Dongfang Huiyan Gaofen01 satellite reveal significant damage in central Tehran, specifically to Khamenei's compound. The satellite, developed by Wuhan University and the government of Yantai, uses AI and high-definition technology. The same satellite system was previously used to analyze destruction in Gaza. On Monday, Indian Prime Minister Narendra Modi reported speaking with leaders from the UAE and Israel regarding the escalating regional situation.

Several Gulf states, including Bahrain, Qatar, the UAE, Kuwait, and Saudi Arabia, reported intercepting hundreds of Iranian missiles and drones over the past 24 hours. These interceptions occurred as regional tensions escalated following U.S. and Israeli strikes against Iran. The UAE also announced the closure of its embassy in Tehran. In response to the attacks, the UAE, Qatar, Saudi Arabia, Bahrain, Jordan, Kuwait, and the United States issued a joint statement condemning Iran's missile and drone strikes as indiscriminate and reckless, endangering civilians and violating sovereignty. The countries reaffirmed their commitment to regional security and their right to self-defense.

Oil prices surged after the reported death of Iranian leader Ayatollah Ali Khamenei in US-Israeli air strikes, escalating conflict between the US, Israel, and Iran. The Strait of Hormuz, a critical oil transit route, experienced near standstill, impacting tanker traffic. This disruption raised concerns about supply shortages and increased import costs, particularly for Asian economies like China, India, Japan, and South Korea, which heavily rely on oil imports. Benchmark Brent crude jumped significantly, reflecting market fears of sustained supply disruption. Iran retaliated with attacks on US military bases in Bahrain, Kuwait, and Qatar, further escalating geopolitical tensions in the region.

Escalating conflict involving Iran and the US/Israeli attacks is disrupting oil and gas supplies in the Middle East, driving up global prices. Iran has launched strikes against oil facilities and shipping in the region, particularly impacting the Strait of Hormuz, a critical waterway for approximately 20% of the world's oil supply. Shipping traffic through the strait has significantly decreased due to safety concerns, with several tankers damaged and at least one fatality reported. Consequently, the price of oil initially surged by over 10%, and experts predict further increases if the conflict continues, potentially reaching $100 per barrel.

Oil prices surged on Monday after the United States and Israel launched attacks on Iran, prompting retaliatory strikes against US and Israeli military installations in the Middle East. Brent crude rose by 9 percent to $79.41 a barrel, while West Texas Intermediate increased by 8.6 percent to $72.79 a barrel. The conflict has disrupted the global energy supply chain, particularly impacting traffic through the Strait of Hormuz, a critical waterway for oil tankers. Tankers are accumulating on either side of the strait due to concerns about attacks and insurance. Experts predict a significant price increase if the Strait of Hormuz remains effectively blocked, preventing 15 million barrels of crude oil from reaching markets daily.

Israeli Minister Amichai Chikli outlined a U.S.-Israeli mission in Iran with two main goals: removing existential threats and creating conditions for regime change. The immediate threat includes destroying Iranian ballistic missiles capable of reaching Israeli cities. While the IDF and U.S. Army won't replace the regime, the mission aims to empower the Iranian people to "regain their freedom." Former President Trump encouraged Iranians to take over their government after U.S. and Israeli military operations conclude. A U.S. official confirmed that Iran's Supreme Leader Ayatollah Ali Khamenei was killed in an Israeli strike in Tehran as part of "Operation Epic Fury." Chikli envisions an Iran aligned with the West, potentially becoming an ally to Israel, the U.S., and other nations in the region.

In a recent video address, Donald Trump vowed to avenge the deaths of three American soldiers following joint US-Israel strikes on Iran, accusing Iran of "waging war against civilization." He stated that there would "likely more" US troop deaths before the conflict with Iran ends. Trump's critics are pressuring the White House for a clearer plan regarding Iran, warning that a lack of strategy risks a prolonged conflict. The situation is developing, and analysts express concern about the potential for the US to be drawn into a long-lasting engagement. Separately, due to ongoing events, airlines including Emirates, Etihad Airways, and Qatar Airways have cancelled hundreds of flights, with thousands of flights cancelled over the weekend.

Following joint US-Israeli strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei in March 2026, Iran retaliated by targeting Israel and US-linked military sites in the region, including in Gulf states hosting US forces. The exchange raises concerns about escalating conflict and Iran's capacity to strike back. Central to Iran's strategy is its large and diverse missile arsenal, including ballistic and cruise missiles, providing long-range capabilities. Iranian officials consider the missile program a key deterrent, especially given its aging air force. Western governments, however, view Iran's missile capabilities as destabilizing and potentially linked to nuclear ambitions, claims Iran denies.

On Saturday, the US and Israel launched attacks across Iran, reportedly resulting in the death of Iranian Supreme Leader Ayatollah Ali Khamenei and the destruction of his compound in Tehran. US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu commented on the strikes. In response, Iran launched missiles and drones towards Israel and four Gulf Arab countries – Bahrain, Kuwait, Qatar, and the UAE – which host US military bases. Iranian state media confirmed Khamenei's death following the US-Israel attack. The reasons behind the initial US-Israel strikes were not explicitly stated in the provided article.

On March 1, 2026, smoke was observed rising from the Jebel Ali Port, Dubai's main shipping port. This occurred amidst ongoing retaliation by Iran for attacks allegedly carried out by the US and Israel. The port was reportedly struck by debris from an intercepted missile the previous day, Saturday. The incident took place in the context of heightened tensions and escalating conflict in the region. The extent of the damage to the port is currently unknown.

Ayatollah Ali Khamenei, Iran's Supreme Leader, died at age 86 following a US-Israeli strike on his compound in Tehran. The strike, confirmed by satellite imagery showing heavy damage, occurred on Saturday and was announced by US President Donald Trump. Khamenei's daughter, son-in-law, and granddaughter were also reportedly killed in the attack. Iran has declared 40 days of mourning. Khamenei, who ruled for 36 years after succeeding Ayatollah Ruhollah Khomeini in 1989, was a polarizing figure, both revered and feared for his role in maintaining the Islamic Republic and building Iran into a powerful anti-US force. Reports indicate that some Iranians grieved while others celebrated his death.

Iranian missiles struck multiple locations across the Arab Gulf states, including Dubai and Abu Dhabi, marking a significant escalation of regional conflict. The attacks damaged infrastructure, including airports and hotels in Dubai, demonstrating Iran's capability to strike US allies in the region. These strikes, according to analysts, aim to deter Gulf states from supporting potential US or Israeli actions against Iran. The attacks highlight the vulnerability of Gulf nations and underscore Iran's willingness to "internationalize the battlefield," bringing the conflict directly to its neighbors. This development is likely to strengthen Arab rulers' support for potential US-Israeli strikes.

On February 28, 2026, Qatar reported that eight people were injured by falling missile shrapnel after Iran fired 66 missiles at the country. Qatari authorities stated that their air defenses intercepted the missiles, but 114 reports of falling shrapnel were received nationwide. The Qatari Interior Ministry issued warnings urging residents to stay indoors and avoid military sites or unidentified debris. Qatar's Ministry of Foreign Affairs condemned the Iranian missile strikes as a violation of its sovereignty and a threat to regional stability, reserving the right to respond under international law.

Dubai residents and tourists were shaken when Iranian missiles and drones approached the Gulf states over the weekend, triggering air defenses in the UAE, Qatar, Saudi Arabia, and Bahrain. Many initially mistook the interceptors for fireworks, as Dubai attempted to maintain its image of stability amidst regional conflict. While some residents received official alerts, others were caught off guard. Fires and smoke were reported at Dubai and Abu Dhabi airports due to drone debris, resulting in one death and several injuries. Smoke was also seen at the Jebel Ali port area in Dubai, one of the busiest ports in the Middle East. The incident challenged Dubai's long-held perception as a safe haven insulated from regional political turmoil.

On March 1, 2026, air traffic in the Middle East experienced significant disruption. According to Flightradar24, over 3,400 flights were canceled within the preceding 48 hours. The cancellations affected seven airports across the region. Airports impacted included those located in Qatar, the United Arab Emirates, and Bahrain. The reason for the widespread flight cancellations was not specified in the report.

Airspace closures across the Middle East, triggered by attacks between America/Israel and Iran, caused widespread flight disruptions, stranding or diverting hundreds of thousands of travelers. Several countries, including Israel, Qatar, Syria, Iran, Iraq, Kuwait, and Bahrain, closed their airspace, leading to the suspension of operations at key international airports in Dubai, Abu Dhabi, and Doha. Major airlines like Emirates, Qatar Airways, and Etihad cancelled thousands of flights, impacting an estimated 90,000 passengers daily passing through these hubs. Over 3,400 flights were cancelled across seven major Middle Eastern airports on Sunday. Some airports and landmarks in the region sustained damage, resulting in injuries and at least one reported death. The closure of Iranian airspace was extended until Tuesday morning.

On Saturday morning, the US and Israel launched joint strikes on Iran, targeting Iranian leaders and military sites. In response, Iran's IRGC fired missiles at US military bases in the Gulf, with explosions reported in Bahrain, Kuwait, the UAE, and Qatar, resulting in one death in the UAE. Explosions also occurred in Tehran, near the presidential palace. Iran launched missiles at Israel, triggering air defense systems over Jerusalem. The US President vowed to crush Iran's military and eliminate its nuclear program, citing the need to defend Americans. The Israeli Prime Minister stated the operation aimed to remove an existential threat. These events followed inconclusive nuclear talks between the US and Iran.

On February 28, 2026, Iran reportedly struck a United States military base in Bahrain. This attack followed joint Israel-US attacks within Iran. News reports included video footage showing smoke plumes rising after the strike. Two missiles were reportedly intercepted over Qatar. Explosions were also reportedly heard in Abu Dhabi, Kuwait, and Saudi Arabia. The reason for the attacks was not explicitly stated in the provided information.

Iran launched missiles and drones targeting Israel and US military installations in Bahrain, Kuwait, and Qatar in response to recent attacks by the US and Israel. The Iranian Foreign Ministry stated the action was in defense of the homeland. The UAE and Iraq closed their airspace, and shrapnel from an Iranian missile killed one person in the UAE. Israel issued a nationwide warning and activated its missile defense systems to intercept incoming projectiles. There were initially few reports of damage or injuries in Israel.

Following reported strikes in Iran by the US and Israel, Australia's National Security Committee is convening. Foreign Minister Penny Wong stated Australia was not informed in advance of the strikes and has updated travel advice for Israel, Lebanon, Bahrain, Kuwait, Qatar, and the United Arab Emirates. A crisis center has been activated to provide consular support to Australians in the region, and a registration portal has opened for Australians in Iran and Israel. Wong emphasized Iran's destabilizing role in the region and stated that Australia did not participate in the strikes. The Australian government advises Australians in the affected region to follow travel advice and seek safety, acknowledging potential difficulties with repatriation due to airspace closures.

A fire at a hotel in Dubai's Palm Jumeirah area injured four people following a reported loud explosion on Saturday. The incident occurred amidst Iranian retaliatory strikes in the Middle East, though authorities have not explicitly confirmed a connection. The Dubai Media Office stated the fire was contained and the site secured, emphasizing public safety. Authorities are urging calm and advising the public to rely on official information sources. Emergency response teams responded to the incident, the cause of which remains unconfirmed by Dubai officials.

Following Israeli and US airstrikes on Iran, the Australian Department of Foreign Affairs (Dfat) has warned Australians of potential "reprisal attacks and further escalation" across the Middle East. Dfat updated its Smartraveller website, advising against travel to Iran and urging those in the country to leave if safe, citing the risk of military conflict and potential airspace closures impacting global flights. Australians remaining in Iran are advised to prepare to shelter in place with adequate supplies. The Australian embassy's operations in Iran are suspended. Prior to the attacks, Australia had already advised citizens in Israel and Lebanon to consider leaving and withdrew dependents of officials from Israel and Lebanon due to the deteriorating security situation.