Markets on alert amid claims Ayatollah is dead – Daily Business

Global markets are heading for a nervous open on Monday after joint US-Israel missile strikes on Iran escalated tensions in the region.

Analysts warned of higher oil and petrol prices and a change of plan at the Bank of England if the situation is not calmed quickly.

Israel said “several senior figures” from the Iran regime have been “eliminated” amid conflicting reports over the fate of Iranian Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian.

Amid denials from the Iranian government, Israel said Khamenei was dead and that his body was discovered under the rubble caused by an Israeli airstrike.

Donald Trump later told NBC News: “I have spoken to a lot of people, we feel that is a correct story. A large number of their leaders have also been killed.”

Iran retaliated with strikes in Bahrain, Doha, Dubai and Kuwait – places with US military bases, or that are allied to the US.

Among the buildings hit were the Fairmont The Palm hotel in Dubai, where  four people were injured, and another hotel in Bahrain.

In Doha, Qatar, explosions were seen apparently targeting the al Udeid air base, the largest American military base in the region. Jordan – which borders Israel – said that its armed forces shot down two ballistic missiles.

Financial analysts warned that the attacks will see the US dollar surge, pushing sterling down, while gold and silver could spike – with $6k per ounce gold now on the table.

They also believe oil prices will rise, potentially climbing from today’s $73 per barrel to $80 with petrol prices going up.

This could derail the Bank of England’s inflation predictions and push up swaps – meaning borrowers will have to pay more as interest rates stay high.

Roughly 20% of globally traded crude and a similar proportion of liquefied natural gas passes through the Strait of Hormuz each day, equating to around 13 million barrels of oil moving through the channel daily.

Nigel Green, founder and chief executive of financial adviser deVere Group said: “Energy markets are entering a repricing phase driven by operational risk rather than speculation. 

“When close to one fifth of global crude flows transit a single maritime corridor, even a marginal probability of disruption demands a higher structural risk premium.”

Susannah Streeter, chief investment strategist, Wealth Club, said: “Investors have been bracing for a rise in geopolitical tensions and now they are having to buckle up for another rollercoaster ride.”

Reports from the US, explaining the reasons for the attacks, were that Washington believed the Iranians intended to pre-emptively target US troops in the region.

Iran’s major cities were targeted in the aerial assault which the Pentagon named Operation Epic Fury.

Donald Trump said that “major combat operations” were under way, and urged Iranians to “take over” the government.

“We will not allow the world’s number one sponsor of terror to have a nuclear weapon — not now, not ever,” he said.

He urged Iranian soldiers to lay down their weapons or “face certain death” and told the civilian population: “The hour of your freedom is at hand.

“When we are finished, take over your government. It will be yours to take. This will probably be your only chance for generations.”