World March 12, 2026

Conflict Enters Second Week as Leaders Vow to Continue Fighting

Iran, Israel and the United States maintain hardline stances as the toll climbs, oil spikes and markets wobble

By Caleb Monroe
Conflict Enters Second Week as Leaders Vow to Continue Fighting

As fighting in the Middle East approaches two weeks, leaders in Iran, Israel and the United States have publicly affirmed they will continue military operations. The conflict has produced thousands of casualties, displaced millions, disrupted shipping through the Strait of Hormuz and pushed oil prices significantly higher while rattling global financial markets.

Key Points

  • Leaders in Iran, Israel and the United States have publicly committed to continuing military operations, sustaining the conflict into its second week - impacting geopolitical stability.
  • Disruptions to the Strait of Hormuz and related shipping concerns drove oil prices up about 9% to $100 a barrel, affecting the energy sector and commodity markets.
  • Financial markets reacted to the conflict with U.S. stocks falling and the S&P 500 recording its largest three-day percentage drop in a month - signaling market volatility and investor concern.

The war in the Middle East neared its 14th day on Friday with the chief political and military actors publicly refusing to relent. Leaders in Tehran, Jerusalem and Washington each issued statements underscoring a determination to press on as the conflict has killed thousands, unsettled millions more and disrupted global energy and financial markets.

Iran’s newly installed Supreme Leader, Mojtaba Khamenei, delivered his first public comments since assuming the role in the crisis. His remarks were read by a television presenter on Thursday rather than delivered in person. The hardline cleric pledged continued retaliation and said Tehran would keep the Strait of Hormuz closed. He also urged neighboring countries to evict U.S. military bases from their territory or face the prospect of being targeted by Iran.

"I assure everyone that we will not neglect avenging the blood of your martyrs," the statement said, reflecting the leader’s close ties to Iran’s most powerful military force. The record does not explain why he did not appear in person to make the remarks.

Israeli Prime Minister Benjamin Netanyahu held his first news conference since the U.S. and Israeli strikes on Iran began on February 28, participating by video link. He defended the military campaign and issued what was described as a veiled threat regarding Iran’s leadership, saying Israel was creating conditions to topple the regime and that it could assist those inside Iran who might bring about that outcome.

"I will not detail the actions we are taking. We are creating the optimal conditions for toppling the regime but I won’t deny that I can’t tell you with all certainty that the people of Iran will topple the regime - a regime is toppled from the inside," Netanyahu said. "But we can definitely help and we are helping."

In the United States, President Donald Trump said on social media that the U.S. and Israel had already won the war and framed higher oil prices as a financial benefit to the United States, which he described as the world's largest oil producer. He linked the economic effects to strategic pressure resulting from disruptions at the Strait of Hormuz and reiterated that preventing Iran from obtaining nuclear weapons remained a paramount concern.

Trump’s comments drew rebukes from Democratic opponents at home, who criticized his apparent focus on financial upside amid a conflict that has produced substantial civilian casualties. Lawmakers demanded fuller information about the civilian toll, including a strike that killed dozens of children at an Iranian girls’ school.

The administration has not released a public assessment of the expected cost or duration of the war, nor a post-conflict strategy for Iran. Public opinion in the United States is said to be broadly opposed to the conflict. Officials and senior aides have offered varying explanations for the decision to initiate military action.

Energy markets have been directly affected. The Strait of Hormuz, which runs along Iran’s coast and normally handles about one-fifth of global oil shipments, has been cited as a chokepoint for supplies. The risk of an extended disruption prompted crude prices to rise roughly 9% to around $100 a barrel on Thursday, despite a coordinated release of 400 million barrels from strategic reserves by developed nations and earlier hopes for a quick resolution.

U.S. markets reacted as well. U.S. stocks fell on Thursday, with the S&P 500 recording its largest three-day percentage decline in a month. Market moves accompanied widespread investor concern about the conflict’s potential economic fallout.

On the battlefield, the death toll has surpassed 2,000 people, with the majority of fatalities occurring in Iran. Lebanon reported nearly 700 deaths amid an Israeli offensive against the Iran-backed Hezbollah group. Israeli forces have struck central Beirut and ordered residents from parts of southern Lebanon as fighting intensified.

Netanyahu said Israel would continue targeting Hezbollah after the group opened fire on March 2 in response to the killing of Iran’s elder supreme leader, Ali Khamenei, who is identified in statements as the father of Mojtaba Khamenei and whose death coincided with the outbreak of the war.

Reports have surfaced of drones entering airspace over Kuwait, Iraq, the United Arab Emirates, Bahrain and Oman, undermining assertions by the United States and Israel that much of Iran’s long-range weapons stockpile had been neutralized. In maritime incidents, two tankers were set on fire at the port of Basra in Iraq after suspected attacks by explosive-laden boats. Earlier the same day, three other ships were struck in the Gulf.

Iran’s Revolutionary Guards claimed at least one of the attacks, saying a Thai bulk carrier had been set ablaze. Separately, a container vessel reported being struck by an unidentified projectile near the United Arab Emirates.

Domestically within Iran, residents described an enhanced security presence. A teacher in Tehran, who gave the name Majan and is 35 years old, said by phone that "security forces are everywhere, more than before. People are afraid to come out, but supermarkets are open."

Calls from Israel and the United States for Iranians to rise up and overthrow the clerical leadership have not produced organized resistance while the country faces external attack. Although many inside Iran reportedly seek change and some publicly marked the death of the elder supreme leader on February 28 with celebration, there has been no indication of sustained, organized dissent amid the wartime conditions.

Tehran has conveyed that its present approach includes inflicting prolonged economic pain to compel policy changes in Washington. A representative of Iran’s military command said on Wednesday that the world should prepare for oil reaching $200 a barrel. U.S. Energy Secretary Chris Wright told CNN on Thursday that he found such an outcome unlikely but did not dismiss it entirely, saying "I would say unlikely, but we are focused on the military operation and solving a problem."


This conflict remains fluid and the public record contains assertions and forecasts from the parties involved. Many of the events described, including casualty counts, strikes, maritime incidents and political statements, have been reported by officials and participants and reflect the immediate situation as it has been presented publicly.

Risks

  • Further disruption of oil flows through the Strait of Hormuz could deepen energy market shocks and push prices higher, as Tehran has warned of potential $200 a barrel oil - posing risks to energy-dependent industries and global inflation.
  • Escalation of hostilities to neighboring countries or targeting of foreign bases, following Iran’s calls for countries to close U.S. bases or face being targeted, could broaden the conflict and further unsettle regional trade and security.
  • Continued civilian casualties and large-scale displacement could increase political pressure domestically in involved countries, complicating policy responses and potentially affecting consumer confidence and markets.

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