The widening US-Israel conflict with Iran dominated global headlines as the war entered its second week, sending oil prices surging past $100 per barrel and rattling financial markets worldwide. With Iran's new supreme leader vowing to continue attacks and keep critical shipping lanes closed, the international community scrambled to contain the economic fallout through an unprecedented release of emergency oil reserves.

IRAN CONFLICT INTENSIFIES

Iran's newly appointed Supreme Leader Mojtaba Khamenei pledged to maintain closure of the Strait of Hormuz and continue strikes on American military installations as the regional conflict stretched into its 13th day (NPR, multiple outlets). The escalation follows Israeli Prime Minister Netanyahu's claim that operations killed top Iranian nuclear scientists, while reports emerged of a deadly US strike on an Iranian school linked to outdated intelligence.

The conflict has spread across multiple fronts, with correspondents reporting casualties and disruptions in Iran, Lebanon, Iraq, and Israel. A domestic security incident at a Michigan synagogue has heightened concerns about threats reaching American soil, though California's governor reported no imminent physical danger to the state.

Behind the kinetic warfare, cyber operations have emerged as a critical force multiplier. US and Israeli hackers have reportedly penetrated Iranian air defense networks and civilian surveillance infrastructure, tracking leadership movements and establishing situational awareness ahead of strikes. Iran-linked hackers are responding with intensified attacks on American targets.

The Pentagon is fast-tracking development of layered air defenses and high-energy laser systems to counter Iranian drone swarms that have been testing existing protective capabilities around US troops in the region.

OIL MARKETS IN CRISIS MODE

Brent crude surged 9% to $101.40 per barrel following fresh attacks on cargo vessels and Khamenei's threats to block the vital shipping chokepoint through which roughly 20% of global oil flows (Reuters, Financial Times). Prices briefly touched $115 before stabilizing.

In response, the International Energy Agency and its 32 member nations announced a record-breaking release of 400 million barrels from emergency stockpiles. President Trump committed 172 million barrels from the Strategic Petroleum Reserve, with Energy Secretary Chris Wright outlining plans to refill the reserve with 200 million barrels within a year. IEA Director Fatih Birol expressed confidence the coordinated action would significantly ease market pressure.

WALL STREET RETREATS

The S&P 500 recorded its largest three-day decline in a month as investors fled risk assets amid the compounding pressures of war and energy market volatility (Wall Street Journal). The Trump administration explored additional fuel price mitigation measures while publicly pressuring the Federal Reserve to cut interest rates.

TRADE POLICY TAKES NEW DIRECTION

US Trade Representative Jamieson Greer launched a Section 301 investigation targeting China, the European Union, and India following a Supreme Court decision that invalidated previous tariff policies (USTR). The probe into unfair trade practices could result in new import levies by summer 2026, signaling a renewed push to protect the American industrial base through legal channels.

South Korean lawmakers approved legislation to coordinate the nation's $350 billion investment pledge to the United States, establishing oversight mechanisms for capital flows across multiple sectors (Yonhap).

CHINA POSITIONS ITSELF AS STABILIZER

As the conclusion of its annual legislative session, Beijing sought to contrast itself with global instability by emphasizing domestic continuity and its five-year plan focused on economic self-reliance and technological independence (Xinhua). The messaging appeared calibrated to attract partners uneasy about American foreign policy unpredictability.

In a sign of China's continued tech ambitions, brain-computer interface startup Gestala raised $21 million just two months after launch, developing non-invasive ultrasound-based neural technology as an alternative to surgical implants.

DOMESTIC POLICY MOVES

The Trump administration is tightening commercial licensing requirements for foreign-born drivers following several high-profile accidents, a crackdown that could affect thousands of long-term drivers including DACA recipients and result in lost accreditation for numerous trucking schools (Department of Transportation). Critics argue the policy unfairly penalizes law-abiding workers.

In the UK, regulators Ofcom and the ICO demanded that Meta, TikTok, and YouTube implement robust age verification systems, citing research showing 86% of children ages 10-12 have social media profiles despite existing age restrictions.

TECH AND LEGAL

Judge James Donato ordered amicus curiae briefs in the Epic Games-Google antitrust settlement case, seeking expert input that will delay final approval of the US portion of the agreement until at least early April.