A fourth week of war between Iran, Israel and the US is rippling far beyond the battlefield.
After shaking oil markets, the war is now widening threats to critical infrastructure and forcing governments to prepare for fresh economic pain.
Britain’s leadership is convening emergency talks as traders brace for supply shocks, and gasoline cargoes are being rerouted to Asia.
Investors are closely watching President Donald Trump’s Strait of Hormuz deadline for signs that the crisis could intensify.
Iran expands targets beyond military
Iran’s war with Israel and the US entered its fourth week on Monday, with Tehran widening its threats beyond military targets.
The Iranian Parliament Speaker warned that the potential targets may include financial institutions linked to US Treasury bonds.
President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz expires Monday evening in Washington.
Fighting intensified over the weekend as missile alerts sounded across Israel and Israeli forces reported fresh strikes in Tehran.
Iran also continued missile and drone attacks on Israel and Gulf states hosting US forces, while Saudi Arabia said ballistic missiles were aimed at the Riyadh region.
Oil volatility surges on Iran threat
Oil prices swung sharply on Monday as traders weighed President Donald Trump’s ultimatum to Iran to reopen the Strait of Hormuz or face strikes on key energy infrastructure.
Brent crude was last up slightly at about $112.77 a barrel, while US West Texas Intermediate climbed to roughly $98.51 after a volatile session.
Markets remain on edge because the Strait, which normally carries about 20% of global oil supply, has been largely shut to commercial shipping.
Iran has warned that Gulf energy and water facilities could become targets if its power grid is hit.
Goldman Sachs also lifted its near-term oil forecasts, underscoring fears of a prolonged supply shock.
UK holds emergency crisis talks
British Prime Minister Keir Starmer will chair an emergency COBRA meeting on Monday as the Iran war threatens to spill deeper into Britain’s economy.
Finance Minister Rachel Reeves and Bank of England Governor Andrew Bailey will also attend the meeting.
The government said the discussion will focus on the crisis’s impact on households and businesses, energy security, supply chains and the wider international response.
Officials are increasingly worried because Britain relies heavily on imported natural gas.
The inflation is already high and public finances remain under strain.
Economists warn the latest energy shock could push inflation back toward 5% later this year and complicate hopes for lower interest rates.
Gasoline flows shift to Asia
European gasoline cargoes are increasingly being redirected to Asia as the Iran war tightens fuel markets and heightens fears of fresh supply disruptions across the region.
Traders are chasing higher premiums in Asia, where buyers are scrambling to secure replacement barrels as crude flows through the Strait of Hormuz remain under pressure.
The shift highlights how the conflict is no longer just moving oil prices, but is also reshaping refined fuel trade routes and widening price gaps between regions.
Asia’s dependence on Middle East energy has left it especially exposed, prompting importers to pay more for gasoline and other fuels.
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