US-Israel war on Iran: everything you need to know
South China Morning Post
by SCMPMarch 2, 2026
AI-Generated Deep Dive Summary
The escalating conflict between the US, Israel, and Iran has sparked widespread turmoil in the Middle East, with significant geopolitical and economic ramifications. As tensions escalated, Iranian retaliation and US-Israeli strikes led to casualties, oil price spikes, and a global stock market sell-off. The death of Iran's Supreme Leader Ayatollah Ali Khamenei has further intensified regional instability, leaving Tehran in chaos and prompting calls for revenge. Meanwhile, China's condemnation of the killing highlights its enduring strategic ties with Iran, despite internal leadership changes.
The conflict has already caused major disruptions in global oil markets, sending prices soaring as supplies become increasingly uncertain. In response to the escalating violence, US stock futures experienced sharp declines, with the Dow dropping 400-570 points and the S&P 500 and Nasdaq also showing significant losses. These market reactions reflect the broader economic uncertainty stemming from the crisis in the Middle East.
China's stance on the situation underscores its growing influence in the region and its commitment to maintaining ties with Iran, even as tensions rise. Beijing has strongly condemned the killing of Khamenei, signaling its opposition to further escalation and its desire to preserve stability in a region critical to global trade and energy supplies. This aligns with China's broader strategy to expand its economic and political influence in the Middle East.
The ongoing conflict raises significant questions about its implications for US-China relations and global security dynamics. As the situation evolves, it will likely shape the geopolitical landscape of the Middle East and beyond, with far-reaching consequences for international trade, energy markets, and regional stability. The unfolding crisis serves as a stark reminder of the interconnectedness of global politics and the delicate balance of power in the modern world.
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Originally published on South China Morning Post on 3/2/2026