The moment markets had feared arrived over the weekend: oil prices crossed $100 per barrel for the first time in years, driven by a dramatic escalation of fighting between Israel and Iran. The milestone marked not just an economic turning point but a signal that the conflict had entered a dangerous and unpredictable new phase.
Israeli forces struck at least five energy-related sites in and around Tehran, killing four oil workers and sending towering columns of black smoke into the sky above the Iranian capital. Iran’s Revolutionary Guards threatened swift retaliation, warning that continued strikes on energy infrastructure would result in similar attacks across the Gulf.
Saudi Arabia, the UAE, Qatar, Bahrain, and Kuwait all reported being targeted by Iranian drones and missiles over the weekend. Saudi air defenses intercepted 15 drones in a single engagement, while a major desalination facility in Bahrain was damaged. A residential area in Al-Kharj, Saudi Arabia, was also struck, killing two civilians.
The United States found itself increasingly drawn into the conflict. A US service member died from injuries sustained during an Iranian attack in Saudi Arabia, bringing American fatalities in the war to seven. Reports also surfaced suggesting that Russia had been providing Iran with intelligence to help it locate and target US military installations in the region.
Iran’s internal politics added a new dimension of uncertainty. The country’s clerical assembly selected Mojtaba Khamenei — son of the deceased supreme leader — as his successor, a move condemned by international observers and one that experts warned could fuel further escalation rather than promote stability.