What Happens Next in Iran After Death of Khamenei

Iran’s supreme leader was killed in US–Israeli airstrikes, a seismic development in a conflict that’s spread to half a dozen countries across the Middle East and threatens to disrupt energy flows. For details, and suggestions of what happens next, 'Bloomberg This Weekend' hosts David Gura and Christina Ruffini speak with Bloomberg anchor Joumanna Bercetche in Dubai, Bloomberg Israel bureau chief Ethan Bronner in Tel Aviv and Nancy Youssef, a staff writer at The Atlantic. US President Donald Trump said the bombing campaign against Iran could last for weeks and called on the nation’s leaders to capitulate, while the Islamic Republic’s security chief ruled out negotiations.

The conflict continued to reverberate across the Middle East on Monday, with blasts heard across Israel, Saudi Arabia, Qatar and the United Arab Emirates, as states intercepted Iranian missiles launched in response to US-Israeli strikes. Oil surged the most in four years and airlines suspended flights, causing major disruptions at some of the world’s busiest airports.

The US said three fighter jets crashed in Kuwait due to an apparent friendly fire incident. Israel expanded its campaign to Beirut after coming under attack from Hezbollah fighters in southern Lebanon, who are allied with Tehran.

WATCH: The US said it suffered its first casualties in the war with Iran, as three US service members were killed and five “seriously wounded.” President Donald Trump addressed the fatalities.

Oil traded about 10% higher near $80 a barrel as traders gauged the impact of the war on energy flows, with tanker traffic through the vital Strait of Hormuz at a near halt.

QatarEnergy suspended production of liquefied natural gas due to attacks on its facilities, while operations were paused at Saudi Arabia’s largest refinery after a drone strike. Fuel prices soared across global markets. Stocks tumbled.

Read More From Bloomberg Intelligence: BI IRAN

Trump called on Iran’s generals to hand power to the nation’s people and said he’s agreed to talk with new leadership after the weekend killing of supreme leader, Ayatollah Ali Khamenei, according to The Atlantic. Iran’s security chief Ali Larijani said Tehran won’t negotiate with the US, responding to reports that he had reached out to American officials through Omani mediators.

Smoke following reported explosions in Tehran on March 1.

Over the past 48 hours, Trump has made various and sometimes contradictory statements on the attack, including that it could end in a few days or last four to five weeks. He’s listed aims such as the freedom of Iranians and preventing the country from having long-range missiles and nuclear weapons. He’s also said he could cut a deal with the Islamic Republic.

Read More: Trump’s Iran Strikes Usher In Era of Unrestrained American Power

The impact of the escalating conflict on the Strait of Hormuz heightened concerns that shipments from some of the world’s largest energy exporters could be disrupted. Investors reacted to the weekend events by shunning risky assets, although trading was volatile. OPEC+ on Sunday agreed to resume production increases next month to counter an expected further rally in oil prices.

A navy vessel in the Strait of Hormuz, on March 1.

Trump said the bombing campaign will continue after the US-Israeli alliance struck hundreds of targets across Iran. The US leader said on social media that American forces sank nine Iranian naval vessels and the headquarters of the navy was “largely” destroyed in a separate attack.

“Combat operations continue at this time in full force and they will continue until all of our objectives are achieved,” Trump said. He called on Iranian people to “seize this moment” and “take back your country.”

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