From Bahrain oil firm's force majeure to new Supreme Leader of Iran: 5 things to know about West Asia conflict

Iran continued retaliatory attacks on Israel and several Gulf states as the conflict involving Iran, Israel and the United States intensified on Monday.

Meanwhile, Tehran announced that Mojtaba Khamenei, son of the late supreme leader Ayatollah Ali Khamenei, has been named the country’s new supreme leader.

The leadership transition places a powerful but largely behind-the-scenes figure at the centre of Iran’s wartime decision-making.

The escalating conflict has already struck key energy infrastructure, disrupted shipping in the Strait of Hormuz and triggered a sharp surge in global oil prices, raising fears of prolonged economic and geopolitical fallout.

Top 5 developments:

Iranian state television reported that Mojtaba Khamenei has been appointed as the country’s new supreme leader following the death of his father, Ayatollah Ali Khamenei. The position holds ultimate authority over Iran’s political system, armed forces and security apparatus.

Unlike many senior clerics in Iran’s establishment, Mojtaba Khamenei has spent most of his career away from formal political office. He built influence inside the Office of the Supreme Leader, where he was widely regarded as a key intermediary between senior clerics, security officials and political factions.

His ties to the powerful Revolutionary Guard, which reports directly to the supreme leader, are expected to give him a decisive role in directing Iran’s strategy in the ongoing conflict.

At age 17, he briefly served during the Iran–Iraq war.

He only began drawing wider public attention in the late 1990s as his father consolidated authority as supreme leader.

Critics have long linked Mojtaba Khamenei to the suppression of protests following Iran’s disputed 2009 presidential election. He is also believed to have exercised influence over Iran’s state broadcasting organisation.

In 2019, the United States imposed sanctions on him, alleging that he effectively exercised authority on behalf of the supreme leader despite lacking a formal government position.

Iran launched new waves of missiles and drones toward Gulf countries including Bahrain, Kuwait and the United Arab Emirates, expanding the scope of the conflict beyond Israel.

The UAE said more than 100 projectiles were fired in the latest barrage, though most were intercepted and only a small number landed inside the country.

Bahrain reported that Iranian strikes damaged a desalination plant and other civilian facilities. While authorities said electricity and water services remained operational, the incident raised alarm across a region heavily dependent on desalination plants for drinking water.

Such facilities are critical infrastructure in the Gulf’s arid climate, supplying water to millions of residents.

Iran said the strike followed a US air attack on a desalination facility on Qeshm Island in the Strait of Hormuz, which Tehran said disrupted water supplies to dozens of villages.

An Iranian strike on Bahrain’s main refinery complex forced the country’s national oil company to declare force majeure on shipments, citing damage caused by the attack.

The declaration allows the company to suspend contractual supply obligations due to extraordinary circumstances.

Authorities said Iranian drones struck near the town of Sitra, close to the refinery and industrial zone operated by Bahrain Petroleum Company, or BAPCO. At least 32 people were wounded in the attack.

Videos circulating online showed flames and thick smoke rising from the facility after the strike.

Bahraini officials said the refinery damage has affected operations but stressed that domestic fuel supplies remain sufficient to meet local demand.

The attack marks one of the most direct hits on Gulf oil infrastructure since the conflict began.

Global oil prices surged roughly 20% Monday, climbing to their highest levels since 2022 as fears of supply disruptions spread across energy markets.

Brent crude, the international benchmark, rose above $114 per barrel after trading resumed on the Chicago Mercantile Exchange, about 23% higher than its previous close of $92.69.

US benchmark West Texas Intermediate crude also climbed to around $114 a barrel, about 25% higher than its previous close.

The spike reflects mounting concern over disruptions to oil shipments through the Strait of Hormuz, a narrow waterway that normally carries roughly one-fifth of global supply.

Tanker traffic through the strait has slowed sharply as Iran threatens missile and drone attacks on shipping routes used by Saudi Arabia, Iraq, Kuwait, Qatar, Bahrain, the United Arab Emirates and Iran itself.

Meanwhile, Iraq and Kuwait have begun cutting production while Qatar has reduced liquefied natural gas exports as logistics across the Persian Gulf become increasingly strained.

India also warned that the conflict could have serious implications for its economic interests in the region.

External Affairs Minister S. Jaishankar said nearly 10 million Indian citizens live and work in Gulf countries, while the region accounts for roughly $200 billion in annual trade with India.

He also pointed to growing risks to maritime security, noting that attacks on merchant vessels have already killed two Indian sailors and left another missing.

Making a statement in the Parliament, Jaishankar said, “The House is also aware that in the last decade there has been significant investments from the region into the Indian economy. Therefore, serious supply chain disruptions and the climate of instability that we perceive are serious issues.”

India has urged restraint by all sides and called for diplomacy to prevent further escalation.