Iran Names Mojtaba Khamenei Supreme Leader as War Escalates, Oil Prices Surge

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Iran on Monday named Mojtaba Khamenei as the new supreme leader following the death of his father, Ali Khamenei, in an early strike during the ongoing conflict involving Iran, the United States and Israel. The appointment signals continued dominance of hardliners in the Islamic Republic as the war entered its 10th day.

Government institutions and political figures across Iran issued statements pledging loyalty to the new leader. A statement from the country’s defence council declared that the military would obey its commander-in-chief “until the last drop of our blood.”

Senior cleric Sadeq Amoli Larijani described the appointment as a source of comfort for the nation and urged Iranians to continue the path laid out by the late supreme leader.

Mojtaba Khamenei, a cleric believed to wield strong influence within Iran’s security establishment and business networks, was widely considered the leading candidate before the Assembly of Experts — an 88-member clerical body — voted on Sunday to select a successor. The position gives him ultimate authority over Iran’s political and military affairs.

Earlier, U.S. President Donald Trump had dismissed Mojtaba as an acceptable candidate, warning that any Iranian leader would need Washington’s approval to remain in power. Trump said ending the conflict would require agreement with Israeli Prime Minister Benjamin Netanyahu. After the appointment was announced, he declined further comment, saying only, “We’ll see what happens.”

Meanwhile, the conflict intensified across the Middle East. The Israeli military said it launched a new wave of attacks in central Iran and struck infrastructure linked to Hezbollah in Beirut. Rocket and drone attacks also targeted a U.S. diplomatic facility near Baghdad’s international airport, though the projectiles were intercepted by defence systems.

Security sources reported a drone strike near Erbil airport in Iraq’s Kurdistan region, while Saudi authorities said they intercepted another drone near the northern Al-Jawf region. In Bahrain, thick smoke was seen rising near the Bapco oil refinery after authorities said an Iranian drone strike hit the area, causing damage and injuries.

The conflict has already caused significant casualties. The U.S. military said a seventh American service member had died from injuries sustained during Iran’s initial retaliation, while Israel confirmed two soldiers were killed in southern Lebanon amid renewed hostilities with Hezbollah.

Iran’s ambassador to the United Nations said the joint U.S.-Israeli attacks have killed at least 1,332 Iranian civilians and wounded thousands more.

The escalating violence has also rattled global energy markets. Oil prices surged more than 25% on Monday to their highest level since 2022 after disruptions to shipping in the Strait of Hormuz, a crucial route that carries roughly 20% of the world’s oil and liquefied natural gas supplies.

Brent crude rose to $117.65 per barrel while U.S. West Texas Intermediate climbed to $116.62. Several Middle Eastern exporters, including Qatar, Iraq and Kuwait, have already reduced output, with analysts warning that Saudi Arabia and the United Arab Emirates could follow.

The spike in oil prices sent shockwaves through Asian markets, with Japan’s Nikkei 225 falling 5.8% and South Korea’s stock market dropping 6.5% as investors reacted to the escalating crisis.

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