Khamenei’s son takes charge as Iran war sends oil prices soaring, stocks plummeting

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MANAMA – Iran marked the appointment of Ayatollah Mojtaba Khamenei to replace his father as its supreme leader with a new barrage of missiles against Israel and the Gulf states on March 9, as the Middle East war sent oil prices soaring.

As Iran entered its new era – and the conflict its 10th day – world oil prices soared, Saudi Arabia battled drones targeting oil fields, and Bahrain’s state energy company warned after a missile strike that it may be unable to fulfil export contracts.

Finance ministers from the Group of Seven wealthy nations were due to meet on the crisis later in the day and, according to a French government source, they were to discuss releasing strategic oil reserves to dampen the pressure on energy prices and protect the world economy.

The United Arab Emirates and Kuwait also reported new attacks, and Asian economies reacted quickly.

The Japanese and South Korean stock markets closed down by more than 5 per cent, Filipino motorists queued to fill their tanks, and Vietnam prepared to scrap tariffs on fuel imports.

Seoul, one of the region’s best performers in 2026 thanks to a tech rally, closed down 6 per cent, while Tokyo shed more than 5 per cent, and Taipei fell more than 4 per cent. Hong Kong and Shanghai also closed sharply lower.

European stocks moved sharply lower nearing mid-day deals, and gas prices on the continent remained elevated after soaring as much as 30 per cent at the open.

“The rise in petrol costs is acting as a major drag on equity prices and if oil prices continue to move higher this week, then the pumps will move with it,” Ms Kathleen Brooks, research director at trading group XTB, said.

“The cost of living crisis is back, and it makes global rate cuts unlikely in the coming months,” she added.

Following strikes on Bahrain’s sprawling Al Ma’ameer oil facility that ignited a fire and material damage, the country’s state-owned energy company Bapco joined its counterparts in Qatar and Kuwait in declaring “force majeure”, a warning that events beyond its control could cause it to miss export targets.

Iranian state media said that the Assembly of Experts, Tehran’s top clerical body, did not hesitate in choosing a new leader despite “the brutal aggression of the criminal America and the evil Zionist regime”, then showed a missile ready for launch bearing the slogan, “At your command, Sayyid Mojtaba”.

Mr Mojtaba Khamenei, appointed to replace the cleric who led Iran for nearly four decades and who was killed in the first wave of US-Israeli strikes, is considered a fellow hardliner who will pursue his father’s rejection of dissent.

US President Donald Trump previously dismissed the younger Mr Khamenei as a “lightweight”, and insisted again on March 5 before the announcement that “if he doesn’t get approval from us, he’s not going to last long.”

After similar threats from Israel, a Chinese Foreign Ministry spokesman warned that Beijing opposes targeting leaders and insists “Iran’s sovereignty, security, and territorial integrity should be respected.”

‘Small price to pay’

As Iran retaliated against its oil-rich Gulf Arab neighbours, the benchmark price for a barrel of crude soared beyond US$100 for the first time since Russia’s invasion of Ukraine four years ago.

Mr Trump dismissed the price spike, a politically sensitive issue in the United States, as a “small price to pay” for removing the alleged threat of Iran’s nuclear programme.

In a sign that the US does not expect a quick end to the war, the State Department ordered non-emergency staff to leave Saudi Arabia, days after a drone hit the US embassy.

As questions swirl over the length and goals of the war, Mr Trump told the Times of Israel that any decision on when to end hostilities will be a joint one with Israel’s Prime Minister Benjamin Netanyahu.

“I think it’s mutual... a little bit. We’ve been talking. I’ll make a decision at the right time, but everything’s going to be taken into account,” he said.

Few expect major changes in Iran’s stance under the younger Mr Khamenei, a trained cleric close to Iran’s powerful Islamic Revolutionary Guard Corps.

The Guards quickly pledged support for the new leader, who comes into the role with far less experience than his father, saying they were “ready for complete obedience and self-sacrifice in carrying out the divine commands”.

Iran’s allies and proxies also rushed to express support, with the powerful Badr organisation in Iraq saying that the new leadership represents “blessed continuity of the path of the Islamic revolution”.

Elsewhere in the Gulf

Turkey’s Defence Ministry said on March 9 a ballistic missile fired from Iran was intercepted in Turkish airspace by NATO defence systems, in the second such incident in five days.

Some fragments from the weaponry fell in open territory in the southern Gaziantep area, causing no injuries, the ministry added.

On March 9, Bahrain said another Iranian drone attack on the island of Sitra had injured 32 people overnight.

All of the wounded were Bahraini citizens, and there were four “serious cases”, including children, the Health Ministry said in a statement carried by the state news agency.

The wounded included a 17-year-old girl who suffered severe head and eye injuries, and a two-month-old baby, according to the ministry.

Several explosions were also heard on March 9 in the Qatari capital Doha, as Qatar, Saudi Arabia, the UAE and Kuwait all reported new attacks.

Doha has been targeted by waves of Iranian drones and missiles since Iran launched a sprawling retaliation campaign across the Gulf in the wake of US and Israeli attacks against the Islamic republic.

Qatar’s Defence Ministry said on March 9 that its forces had intercepted a missile attack.

Saudi Arabia’s Defence Ministry said the kingdom intercepted and destroyed two drones heading towards the Shaybah oil field in the south-east of the country.

In the UAE, the National Emergency Crisis and Disaster Management Authority said in a statement on social media platform X that air defences responded to “a missile threat”.

Kuwait, which was targeted by seven missiles and five drones on March 8 according to the authorities, announced another missile and drone attack on March 9.

The Defence Ministry said the country’s air defences were working to intercept the attack.

The multi-front war also intensified in Lebanon.

The Iran-backed militant group Hezbollah said it was engaging Israeli forces who landed in eastern Lebanon on 15 helicopters across the Syrian border, and a new powerful strike hit the southern districts of Beirut.

Large plumes of smoke rose from the areas after the attack, which came after the Israeli military warned it would destroy branches of Al-Qard al-Hassan, a Hezbollah-linked financial firm.

Lebanon was drawn into the conflict when Hezbollah attacked Israel in response to the killing of the elder Mr Khamenei.

Hezbollah said combat was ongoing in eastern Lebanon after its fighters “engaged the helicopters and the infiltrating force with appropriate weapons”.

Lebanon’s state-run National News Agency earlier reported “fierce clashes” around the town of Nabi Sheet, where an Israeli operation over the weekend killed 41 people. AFP