Here's the latest
• Iran oil: President Donald Trump has raised the prospect of the US taking Iran’s oil, in a Financial Times interview, and added he’s still considering whether to seize key fuel hub Kharg Island, which is critical to Tehran’s economy.
• US demands: Trump told reporters aboard Air Force One that Iran has agreed to “most of” the 15-point list of demands from the US to end the war. Iran’s parliament speaker yesterday accused the US of “secretly planning a ground invasion” while talking of negotiations.
• Vital US radar aircraft: The destruction of a US Air Force E-3 Sentry aircraft in an Iranian strike on a Saudi Arabia air base could damage US abilities to spot incoming Iranian threats at distance, say analysts.
• Energy costs: Oil prices climbed and Asian stocks fell after Tehran warned against a US ground invasion. See how the war has roiled markets.
IRGC confirms death of navy commander killed by Israel
Iran’s Revolutionary Guard Corps confirmed on Monday the death of navy commander Alireza Tangsiri, Iranian media reported, four days after Israel said it killed him.
Tangsiri was targeted “while organizing and reinforcing forces” and later died of his injuries, the state-affiliated news agency Tasnim said, without specifying the exact date of his death or the nature of his wounds.
Last week, the Israeli military said it had killed the commander, noting that he was instrumental in the mining and blockade of the Strait of Hormuz.
Tangsiri had been increasingly vocal and visible since Israel and the United States launched their campaign against Iran and was a key figure behind the near-total closure of the key waterway.
The IRGC said it is “accustomed” to such losses and stressed that the navy has been delivering strikes on enemy forces and managing the strait despite Tangsiri’s death, Tasnim said.
Kharg Island: Iran's economic lifeline Trump says he would like to seize
Despite its tiny size, Kharg Island is an economic lifeline for Iran, handling roughly 90% of the country’s crude exports – meaning any assault on it risks major escalation.
Kharg Island is a coral outcrop around a third of the size of Manhattan just 25 kilometers (15 miles) off Iran’s coast, in the Persian Gulf.
Almost every day, millions of barrels of crude oil gush from Iran’s major fields – including Ahvaz, Marun and Gachsaran – through pipelines to the island, known among Iranians as the “Forbidden Island” due to tight military controls.
Its long jetties, jutting into waters deep enough to accommodate oil supertankers, make the island a critical site for oil distribution. It processes 90% of Iran’s crude exports.
The island has long been key to Iran’s economy. A CIA document from 1984 said the facilities are “the most vital in Iran’s oil system, and their continued operation is essential to Iran’s economic well-being.” Israeli opposition leader Yair Lapid recently said that destroying the terminal would “cripple Iran’s economy and topple the regime.”
Iran supplies about 4.5% of global oil, pumping 3.3 million barrels of crude and 1.3 million barrels of condensate and other liquids daily, according to Reuters.
In the weeks leading up to the US-Israeli strikes on Iran, exports from Kharg were ramped up to near-record levels, US investment bank JP Morgan said in a note reported by Reuters.
Storage capacity on Kharg is estimated at roughly 30 million barrels and, according to global trade analyst Kpler, about 18 million barrels of crude are currently stored there, Reuters reported.
The Strait of Hormuz has become a powerful weapon for Iran
When an Iranian official laid out a list of demands last week to end the war started by the US and Israel, he added an item that hadn’t been on Tehran’s list before: recognition of Iran’s sovereignty over the Strait of Hormuz.
The narrow waterway through which a fifth of the world’s oil and liquefied natural gas (LNG) ordinarily passes has emerged as the Islamic Republic’s most potent weapon. And it is now seeking to turn into both a source of potentially billions of dollars in annual revenue and a pressure point on the global economy.
Iran has long threatened to close the strait in case of an attack, but few expected it to follow through – or for it to prove so effective in disrupting global trade flows. The scale of the impact appears to have expanded Tehran’s ambitions, with the new demands suggesting it is seeking to turn that leverage into something more durable.
Shipping through the chokepoint has ground to a near halt amid Iranian attacks, sending global energy markets into turmoil and forcing countries far beyond the Persian Gulf to take emergency measures to secure fuel supplies.
Read more about how Iran is trying to further leverage the Strait of Hormuz here.
How the war is roiling markets
The war in Iran has jolted financial markets, sending oil prices surging and stocks and bonds falling.
The market gyrations can be dizzying. Here’s a look at how the Middle East conflict has impacted markets this month:
Oil has climbed due to the effective closure of the Strait of Hormuz, disruptions to oil facilities in the Middle East and uncertainty about the duration of the conflict.
The Dow, S&P 500 and Nasdaq are each set for their worst month in a year.
The Dow hit a record high on February 10. The blue-chip index has since dropped 10%, putting it in correction territory. The Nasdaq is also in correction.
The S&P 500 is down 7.84% from its peak in late January.
US Treasury bonds have fallen this month, pushing yields higher.
Yields have climbed as investors sell bonds and adjust expectations for potential inflation, and the Federal Reserve holding interest rates steady. That’s a shift from the start of the year, when markets were pricing in two Fed rate cuts this year.
War has displaced 20% of Lebanon's population in three weeks, says UNICEF
The war has displaced 20% of Lebanon’s population in just three weeks, with an average of 19,000 children forced to flee their homes every day, according to the United Nations Children’s Fund (UNICEF).
“One of the challenges that we have is indeed reaching those children, particularly in the south of Lebanon,” said Marcoluigi Corsi, UNICEF Representative to Lebanon, in an interview with CNN on Monday.
“There are children who are trapped in communities which are very difficult to reach, and even more so after the bombardment and the blowing away of several bridges by airstrikes.”
The Israeli military has blown up several bridges over the Litani River – which bisects Lebanon – as part of a broader assault in the south.
Another challenge is trying to support the children now living in temporary shelters, many of whom have been displaced multiple times and have been repeatedly traumatized, Corsi said.
Organizations like UNICEF are now working to provide basic services such as vaccinations for young children, medical care and basic “learning hubs” while schools remain closed.
In some parts of Lebanon, the bombardment has cut off access to basic necessities like clean water as reservoirs and pumping stations have been destroyed, according to UNICEF. Hospitals, bridges and sanitation systems have also been damaged or destroyed.
Qatar condemns Iranian attack on Kuwaiti desalination plant, military camp
Qatar lambasted Iran on Monday for attacking key infrastructure in Kuwait, as the conflict in the region continues.
Qatar’s foreign ministry said in a statement that it “strongly condemns the sinful Iranian attacks that targeted a military camp, a power station, and a water desalination plant” in Kuwait.
The statement said the strikes resulted in injuries among members of the armed forces, and added that the attacks were against international law. It also stressed for Iran to stop “unjustified attacks on sisterly states.”
There were no immediate details from officials on whether the water desalination plant sustained damage. The arid countries of the Gulf are exceptionally dependent on desalination, the process of converting seawater into drinking water.
Earlier this month, Bahraini officials told CNN an Iranian drone had damaged a desalination plant, although not affected water supplies. The attack followed Iran’s Foreign Minister Abbas Aragchi’s accusation that the US hit a desalination plant on Iran’s Qeshm Island affecting 30 villages, which he called a “dangerous move.” The US has denied involvement.
Earlier Monday morning, the Kuwait News Agency, citing Kuwait’s energy ministry, reported that a worker from India was killed after a service building at a power and water distillation plant was damaged in an Iranian attack.
Several foreign workers have been killed or injured in the region since the conflict began. Laborers from South Asia play a key part in the region’s economic engine and are essential to the Gulf’s prosperity. Yet, they remain among its most exposed and unprotected demographic.
The International Labor Organization estimates there are more than 24 million migrant workers in the Arab states.
Asia is running low on oil. The US and Europe are next, JPMorgan report warns
As the Strait of Hormuz remains effectively closed, blocking Middle Eastern oil from flowing to the rest of the world, countries are beginning to feel the bite of depleting oil stocks — with Asia feeling the impact first as the shock moves westward, warned JPMorgan in a report released last week.
Typically, oil shipments from the Persian Gulf reach Asia first, in 10 to 20 days, before arriving in Europe and Africa in about 20 to 35 days, then finally to the United States after about 35 to 45 days.
This “rolling supply disruption moving westward” is why Asia is first to feel the squeeze, the report said. The last oil tanker departed the strait on February 28, it added – and these last shipments before the war have already mostly dried up.
Southeast Asia will be hit especially hard. “The primary challenge has shifted from price to physical scarcity,” according to the report, citing a 41% month-on-month fall in oil exports to the region.
Africa will be next, with the impact growing larger by early April – though this depends on local stock levels and how dependent countries are on imported oil. Early signs of stress are emerging, with Kenya experiencing fuel shortages at the retail level, while Tanzania still maintains adequate stocks, said JPMorgan.
Europe will likely feel the impact by mid-April, though it has the advantage of a strong inventory buffer and alternative Atlantic Basin supply.
The US will be last to feel the blow, according to the report. Since the US has substantial domestic production, it likely won’t feel direct short-term physical shortages – though California is particularly vulnerable to supply challenges, and the country will continue facing higher prices.
Destruction of US radar aircraft could hamper ability to spot Iran threats, analysts say
The destruction of a US Air Force E-3 Sentry aircraft in an Iranian strike on a Saudi Arabia air base could damage US abilities to spot incoming Iranian threats at distance, analysts say.
Dramatic images of the wrecked aircraft, geolocated by CNN, show its tail broken off and its distinct rotating radar dome –– a critical part of the airborne warning and control system, or AWACS –– on the ground at the Prince Sultan Air Base.
The loss of the AWACS is “a serious blow to (US) surveillance capabilities,” said CNN military analyst Cedric Leighton, a former US Air Force colonel who has flown on the aircraft.
“It can potentially impact (US) ability to control combat aircraft and vector them to their targets or protect them from engagements of hostile aircraft and missile systems,” he said.
CNN has reached out to US Central Command for comment on the destruction of the aircraft.
The AWACS enables airborne monitoring of up to 120,000 square miles of battlespace from the ground to the stratosphere, and it has been a vital component of US fighting forces for decades. The fleet of 17 E-3s, and America’s experience using them over the years, is seen by analysts as a major advantage enjoyed by Washington.
Images of the destroyed aircraft began appearing on social media sites over the weekend. CNN geolocated the images to the air base in central Saudi Arabia by comparing them to a satellite image from March 11, which showed the E-3 aircraft at the same location in the recent photos.
CNN had previously reported that an attack on the air base left at least 10 US service members injured. No fatalities were reported.
CNN crew takes cover near Israel-Lebanon border
A CNN crew was forced into a bunker mid-interview as sirens sounded near the Israel-Lebanon border. The incident underscores the volatility along the border area, where Israeli military operations have shifted the front line and displaced nearby Lebanese communities.
CNN’s Jim Sciutto explains how Israel’s expansion into Lebanon is playing out:
While reporting near Israel’s border with Lebanon, CNN’s Jim Sciutto and his crew were forced into a bunker as sirens sounded during an interview with local resident and security force volunteer Nissan Zeevi. No one on the team was hurt. The incident underscores the volatility along the border area, where Israeli military operations have shifted the front line and displaced nearby Lebanese communities.
Remember: Israeli Prime Minister Benjamin Netanyahu said yesterday he ordered the expansion of Israel’s security buffer zone in southern Lebanon with the aim of repelling Lebanese cross-border attacks.
Israel has pushed further into southern Lebanon in recent weeks. Israeli forces are occupying the land south of the Litani River, an area it called on Lebanese civilians to evacuate. The Israeli military has blown up several bridges over the river – which bisects Lebanon – over the past days as part of a broader assault in the south.
CNN’s Lauren Izso and Sophie Tanno contributed to this report.
Frozen American job market might stay on ice due to the war
Job growth was lackluster last year in the United States, but signs of stabilization, if not a rebound, were starting to emerge.
Now, the expanding conflict in the Middle East not only interrupts that potential progress, but also threatens to knock the labor market further off course.
Since the war began, the effective closure of the Strait of Hormuz has increased oil prices, hampered the supply chain and pushed up the cost of gasoline. Inflation fears have heightened, as has uncertainty. That’s a dynamic that could strangle the labor market.
The listless, anemic, “low-hire, low-fire” labor market dynamic is expected to persist … for now.
“Uncertainty is delaying, not canceling, hiring plans,” Gregory Daco, chief economist at EY-Parthenon, told CNN last week.
Daco currently expects a “jobless” expansion, with employment gains of around 20,000 per month in the first half of the year and unemployment (currently at 4.4%) drifting toward 4.7% by the end of the year.
“With recession odds around 40%, the risk is that a prolonged pause in hiring eventually turns into more visible softening,” he wrote. “For now, it’s still a cooling, not a cracking. But if uncertainty were to re-escalate, those cracks could emerge by late-spring.”
Read more about how the war could impact the US job market here.
Pope Leo condemns "those who wage war"
In a Palm Sunday ceremony marking the beginning of Holy Week, Pope Leo XIV said God “does not listen to the prayers of those who wage war but rejects them.”
The pope did not name any world leaders but has been vocal about his criticism of the war in Iran in recent weeks.
In a Palm Sunday ceremony marking the beginning of Holy Week, Pope Leo XIV said God “does not listen to the prayers of those who wage war but rejects them.”
Trump claims Iran is almost ready for a deal, while Tehran issues new warnings. Here's the latest
Even as regional leaders scramble to find diplomatic off-ramps to the war, the main players – Israel, the US and Iran – are doubling down on their positions.
President Donald Trump has claimed Iran is almost ready for a deal, even as Tehran warns it will “rain fire” on American troops if they launch a ground invasion.
Here’s what to know on Day 31:
- Washington’s demands: President Trump said Iran had agreed to “most of” the 15-point list of demands that the US conveyed to end the war. He claimed that Iran has given the US “20 boatloads of oil” that will be shipped on Monday to “prove they’re serious.”
- Iran’s warning: Iran’s parliament speaker accused the US of “secretly planning a ground invasion” while floating negotiations, and said Tehran’s forces are “waiting” for US troops. The USS Tripoli — carrying 3,500 US service members — has arrived in the Middle East.
- Iran’s oil: In an interview with the Financial Times on Sunday, Trump raised the prospect of the US taking Iran’s oil, saying that would be his “favorite thing.” He also told FT he is still considering whether to seize Iran’s Kharg Island, a key fuel hub, adding that US forces would likely need to remain there for an extended period.
- Diplomatic efforts: Pakistan says it is prepared to host talks between the US and Iran “in coming days,” after what it called a “very productive” meeting with regional leaders regarding efforts to de-escalate the war.
- Energy costs: Oil prices climbed after Tehran’s warning against any US ground invasion, with Brent crude rising 2.47% to $107.92. Asian stocks fell on Monday.
- Regional strikes: An Indian worker was killed in Kuwait on Monday after an Iranian attack, reported Kuwait News Agency. Meanwhile, Israel said early Monday it had intercepted two drones from Yemen, days after the Iran-backed Houthi rebels waded into the conflict for the first time since it began. And Israel’s military carried out strikes on the Iranian capital Tehran late Sunday, claiming it is just days away from hitting all the targets in Iran that it classifies a “top priority.”
Trump says he would like to "take Iran’s oil" in Financial Times interview
US President Donald Trump has raised the prospect of the US taking Iran’s oil in an interview with the Financial Times.
Speaking on Sunday, Trump told the newspaper that his “preference would be to take the oil,” as he weighs whether to seize Iran’s key fuel export hub at Kharg Island. He likened the potential move to the US ambitions to control Venezuela’s oil industry following the capture of its leader Nicolás Maduro in January.
Trump added that US forces would likely need to remain there for an extended period.
“Maybe we take Kharg Island, maybe we don’t. We have a lot of options,” Trump said. “It would also mean we had to be there [in Kharg Island] for a while.”
The island, which handles 90% of Tehran’s oil exports, has long been critical to Iran’s economy.
The US previously targeted military installations on Kharg Island with strikes on March 13, with Central Command saying that 90 targets had been hit, including “naval mine storage facilities, missile storage bunkers, and multiple other military sites.”
Trump says Tehran “for the most part” has accepted US’ 15-point plan
President Donald Trump said Sunday that Iran has agreed to “most of” the 15-point list of demands that the US conveyed, via Pakistan, to end the war.
Asked whether Iran responded to those points, the president told reporters aboard Air Force One, “They gave us most of the points. Why wouldn’t they?”
“They’re agreeing with us on the plan. We asked for 15 things, and for the most part, we’re going to be asking for a couple of other things,” Trump continued.
Tehran did not immediately accept the 15-point plan last week. Iranian Foreign Minister Abbas Araghchi has previously acknowledged that messages have been exchanged through intermediaries but signaled skepticism of Washington’s position.
Trump also said Iran has given the US oil that will be shipped tomorrow to “prove they’re serious.” Trump said when he talked last week about Iran giving the US a “present,” it was “10 massive boatloads of oil.”
Trump also claimed there has been “regime change” in Iran during the course of the war.
“We’ve had regime change, if you look already, because the one regime was decimated, destroyed, they’re all dead,” the president told reporters.
“The next regime is mostly dead, and the third regime, we’re dealing with different people than anybody’s dealt with before. It’s a whole different group of people. So I would consider that regime change, and frankly, they’ve been very reasonable,” he continued.
For context: As CNN has previously reported, the 15-point plan is believed to include: Iran committing to no nuclear weapons, handing over its highly enriched uranium, limits on Tehran’s defense capabilities, an end to regional proxy groups and the reopening of the Strait of Hormuz.
Trump previously told CNN’s Kaitlan Collins that Iran had committed to not having a nuclear weapon, something Tehran has said publicly in the past.
Mojtaba Khamenei, the son of former Supreme Leader Ali Khamenei, was elevated to the position his father held after the elder Khamenei’s death in US-Israeli air strikes. Top Iranian officials, including one of its most powerful decision-makers, Ali Larijani, have also been killed in strikes.
Images show vital US radar aircraft destroyed in Iranian strike
An Iranian strike on an air base in Saudi Arabia appears to have destroyed a US Air Force E-3 Sentry aircraft, vital for its airborne warning and control system, or AWACS, that enables airborne monitoring of up to 120,000 square miles of battlespace.
Images of the wrecked aircraft began appearing on social media sites over the weekend. CNN geolocated the images to the Prince Sultan Air Base in central Saudi Arabia by comparing them to a satellite image from March 11, which showed an E-3 Sentry aircraft at the same location as the wreckage seen in the recent photos.
CNN has previously reported that an attack on the air base left at least 10 US service members injured. No fatalities were reported. A US Air Force tanker aircraft was also damaged, sources said.
In the images, the E-3s distinct rotating radar dome can be seen on the ground by the damaged aircraft.
The E-3 Sentry plays a key role in US military battlespace management.
With the ability to track around 600 targets at one time, the AWACS crew can provide commanders and combat units with information on exactly where enemy, friendly and neutral forces are and help direct attacks and defenses.
The 30-foot-diameter radar dome is carried on struts 11 feet above the fuselage, enabling the Sentry to give a view of the battlespace from the ground to the stratosphere at a range of 250 miles, covering about 120,000 square miles, the Air Force says.
