Israel-Iran Conflict Escalates Amid Reports of Khamenei's Death and Hormuz Closure

The Israel-Iran conflict has entered its second day, sparking concern among global markets. Iranian state media confirmed the death of Supreme Leader Ayatollah Ali Khamenei following US and Israeli strikes.

The situation is escalating, with retaliatory strikes reported across parts of the Gulf region. The Strait of Hormuz has become a critical point of concern, as Iran warned it had closed the strait. This could lead to significant disruptions in global oil flows, affecting energy markets worldwide.

Oil traders are pricing in the risk of supply disruption, with Brent crude prices responding aggressively to the escalation. The conflict has also had an impact on crypto markets, with Bitcoin rebounding above $68,000 as some participants interpreted the leadership shock as potentially improving the longer-run security outlook.