Where things stand, global responses — and what comes next
People protest in support of U.S. and Israeli attacks on Iran, ICE immigration raids, and Palestinians during a demonstration in front of the Westwood Federal Building in the Westwood neighborhood of Los Angeles on June 22, 2025. Iran threatened US bases in the Middle East on Sunday after major air strikes that Washington said destroyed Tehran’s nuclear program, but some officials warned the extent of the damage was unclear. International concerns have focused on fears that unprecedented US strikes will deepen conflict in the volatile region after Israel launched a bombing campaign against Iran earlier this month. (Photo: Bing Guan / AFP) (Photo: BING GUAN/AFP via Getty Images)
BingGuan | Afp | Getty Images
The US-Israel conflict with Iran extends into its third day; Both sides are reacting more harshly in the coming days, deepening fears of a broader war that could shake the global economy.
Where do things stand?
Washington and Israel launched major attacks on Iran on Saturday. The killing of the Islamic state’s Supreme Leader Ayatollah Ali Khamenei triggered retaliatory attacks from Tehran.
Tehran responded with missiles and drones against Israel and Gulf countries that host US military bases, including the United Arab Emirates, Qatar, Kuwait and Saudi Arabia.
Civilian infrastructures, including Dubai’s luxury hotel Fairmont The Palm and Dubai International Airport, were also affected by Iran’s retaliatory attacks.
The death of Khamenei, who ruled Iran for more than three decades and held ultimate power, raised the question of who will rule Iran, as he has not publicly named a successor. The council, consisting of Iranian President Massoud Pezeshkian, the head of the judiciary and a member of the Guardian Council, temporarily assumed leadership duties on Sunday.
According to Iranian state media, more than 200 people died in attacks in Iran.
Three American soldiers were killed and five were seriously injured, the US military said Sunday.
Market reaction so far
Crude oil prices rose Monday morning as traders assessed the risks of a major disruption in oil supplies.
Precious metals gold and silver rose nearly 2% as investors flocked to safe-haven assets amid global risk aversion.
Risky assets are retreating. Dow Jones Industrial Average futures fell 521 points, or 1%. S&P 500 futures lost 1 percent and Nasdaq 100 futures lost just over 1 percent.
Japan’s Nikkei 225 index fell 1.2%, while the Topix fell 1.34%. While Hong Kong’s Hang Seng index opened with a decrease of 1.15%, China’s CSI 300 index opened with a decrease of 0.25%. Australia’s S&P/ASX 200 index fell 0.48%.
Decrease in tension or increase in tension?
US President Donald Trump issued a possible warning There will be more American casualties as operations progress. Trump told the Daily Mail on Sunday that the conflict with Iran could continue for the next four weeks.
“This has always been a four-week process. We thought it would be about four weeks. This has always been a four-week process; no matter how powerful a large country is, it will take four weeks or less,” Trump said, as quoted by the British newspaper.
Separately a report In a statement to The Atlantic magazine, Trump said Iran’s new leadership wants to continue negotiations and has agreed to talk with them.
Without specifying when the talks would take place, Trump said, “They want to talk and I agreed to talk, so I will talk to them. They should have done this sooner. They should have given what is very practical and easy sooner. They waited too long.”
The US attacks have sparked controversy over their legal basis, as under the constitution only Congress has the right to declare war.
“There is no reasonable legal justification for the US attack on Iran,” said Brian Finucane, senior advisor at the International Crisis Group, a Brussels-based think tank.
He said Congress did not authorize military action and the president did not act to repel any immediate attack on the United States.
“Even by the standards of unilateral executive military action of recent decades, President Trump’s unauthorized attack on Iran stands apart because of its scale and potential repercussions, including for US forces in the region,” Finucane added.
US lawmakers also expressed concerns about a potentially protracted and costly war in the Middle East.
“There’s no simple answer to what’s going to happen next,” Sen. Tom Cotton of Arkansas, the Republican chairman of the Senate Intelligence Committee, said on CBS News’ “Face the Nation.”
“It’s no secret that this administration has no plan for the chaos now unfolding in the Middle East,” said Sen. Chris Murphy, Democrat of Connecticut.
Global reactions
Attacks on Iran and Tehran’s retaliation have led global leaders to consider the consequences; While Western leaders largely support Trump, China and Russia have targeted the United States and Israel for their military operations.
Chinese: Chinese Foreign Minister Wang Yi, in a telephone conversation with his Russian counterpart, said, “It is unacceptable for the United States and Israel to launch an attack on Iran, especially to recklessly assassinate the leader of a sovereign country and provoke regime change.” China’s foreign ministry called for an “immediate ceasefire”.
Russia: President Vladimir Putin reportedly He expressed condolences over Khamenei’s death, calling the act “a murder committed in cynical violation of all norms of human decency and international law.” Russia’s foreign ministry called for an “immediate return to the political and diplomatic path” in a statement on Saturday.
Gulf countries: Pro-US countries put on a show of defiance, vowing in a joint statement to “stand united to defend our citizens, our sovereignty, and our territory, and to reaffirm our right to defend against these attacks.”
England: The UK government said it was not participating in the strikes and “does not want to see a further escalation of the wider regional conflict”. But London’s agreed to allow the US to use Iran’s military bases for “defensive” attacks on missile sites, according to Prime Minister Keir Starmer.
Germany: A government spokesman said Chancellor Friedrich Merz was “monitoring the development closely and coordinating closely with European partners.” Merz is scheduled to meet with Trump in Washington later this week.
France: President Emmanuel Macron called for an end to the attacks and requested a meeting of the Security Council. He also wrote that Iran’s leadership “must understand that it now has no choice but to engage in good faith negotiations” over its nuclear program.
Australia: Prime Minister Anthony Albanese underlined that Iran has been a “destabilizing force” for decades. “We support the United States taking action to prevent Iran from acquiring nuclear weapons and to prevent Iran from continuing to threaten international peace and security,” the statement said.
Canada: Prime Minister Mark Carney also supported the US action. “Canada supports the United States in acting to prevent Iran from obtaining nuclear weapons and to prevent the Iranian regime from further threatening international peace and security,” Carney said in a statement. he said.
