Middle East Conflict Widens, Lebanon Involved
The US-Israel air conflict against Iran escalated on Monday (March 2nd) without any clear signs of de-escalation. Israel reportedly expanded operations to Lebanon following rocket/drone attacks from Hezbollah, while Iran intensified its retaliatory strikes with missiles and drones targeting Israel and several locations in the Gulf region—including a British base in Cyprus.
In the Gulf, the escalation also resulted in a rare incident of “friendly fire.” The U.S. Central Command said Kuwaiti air defenses mistakenly shot down three U.S. F-15E fighter jets during a wave of Iranian attacks. All six crew members ejected, were rescued, and are reported to be in stable condition; an official investigation is underway.
Meanwhile, Iran's Revolutionary Guard Corps (IRGC) announced a new wave of attacks on Monday afternoon, confirming that the conflict is moving into a broader and more multi-layered phase. At the same time, cross-front attacks increase the risk of miscalculation in the region, especially when many countries' air defense systems are on high alert.
The impact was immediately felt in the markets. The Gulf region's security disruptions have triggered a spike in energy prices and exacerbated concerns about the global economic recovery, as trade and logistics routes are impacted by increased security risks and operational restrictions. In the context of US foreign policy, President Donald Trump has asserted that the operation could last for weeks and renewed calls for political change in Iran—while within Iran, Reuters reports paint a mixed picture: a stream of citizens fleeing major cities, amid uncertainty over political direction following a series of deadly attacks. (alg)
Source: Newsmaker.id
