With Tehran choked in heavy black smoke from strikes that hit an oil refinery, Iran launched fresh strikes on energy installations elsewhere in the Gulf on Monday – sending oil prices soaring on fears over supply disruptions.

Bahrain's sprawling Al Ma'ameer oil facility was hit, causing a fire and damage, with the country's state-owned energy firm Bapco declaring force majeure – the latest Gulf producer to activate the legal clause since the conflict began last weekend with a combined US-Israel bombing of Iran. 

Energy producers in Qatar and Kuwait earlier made similar declarations, which are a warning that events beyond their control may lead them to miss export targets.

Bapco said it "hereby serves notice of force majeure on its group operations which have been affected by the ongoing regional conflict in the Middle East and the recent attack on its refinery complex," according to a statement posted by the company. 

Asian stock markets plunged on Monday as oil prices surged, with investors running for the hills as crude rocketed to its highest level since the Russian-Ukraine conflict began in 2022.

Evacuation order

The latest strikes came after Washington ordered embassy staff to leave Saudi Arabia, following a rash of attacks targeting the kingdom. 

The State Department said in a travel advisory it had "ordered non-emergency US government employees and US government employee family members to leave Saudi Arabia due to safety risks".

Drones hit the US embassy in the Saudi capital Riyadh last week, and drones have also caused damage at the US diplomatic missions in Kuwait and the United Arab Emirates.

Bahrain said the attack on its Al Ma'ameer oil facility had caused a fire but the blaze had been brought under control.

Several explosions were also heard Monday in Doha as Qatar, Saudi Arabia, the UAE and Kuwait all reported new attacks.

Gulf countries have borne much of Tehran's response after the United States and Israel launched a massive aerial campaign against Iran on February 28.

Iran's President Masoud Pezeshkian has warned that the Islamic republic "will be forced to respond" against its neighbors if their territory is used to attack it.

Oil surges past $100 a barrel

The war has effectively shut the Strait of Hormuz, where a fifth of global oil and seaborne liquefied gas is shipped near the Iranian coast. With tankers unable to sail for over a week, producers have run out of storage and are being forced to halt pumping.

Brent crude futures were up 12.5% at $104.30 per barrel at 1017 GMT, having earlier shot as high as 119.50, on track at one point for the biggest jump in a single day.

The prospect of a prolonged energy crisis – reviving memories of the Middle East oil shock of the 1970s – sent share markets in Asia and Europe into a tailspin, which futures showed was likely to reach Wall Street when it opens on Monday.

The price of gasoline has huge political resonance in the United States, where President Donald Trump's Republicans hope to keep control of Congress in midterm elections in November. He won re-election in 2024 after pledging to end foreign wars and cut the cost of living.

"Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, ‌is a ⁠very small price to pay for U.S.A., and World, Safety and Peace," Trump posted on Sunday night. "ONLY FOOLS WOULD THINK DIFFERENTLY!"

Iran names Khamenei's son new Supreme Leader

Iran named Mojtaba Khamenei to succeed his slain father as supreme leader on Monday. The 56-year-old Shi'ite cleric had been declared unacceptable by Trump, who has demanded Iran's unconditional surrender.

Iran's political system rallied around the new supreme leader, with politicians and institutions issuing strongly worded pledges of loyalty. Public processions to take loyalty vows were announced for later on Monday.

"We will obey the commander-in-chief until the last drop of our blood," a defense council statement said.

Mojtaba's father, Supreme Leader Ali Khamenei, was killed in one of the first strikes against Iran more than a week ago.

Mojtaba had been viewed as a frontrunner before Sunday's vote by the Assembly of Experts, a body of 88 clerics tasked with choosing the new supreme leader, who has the final say in all matters of state.

Israel says its war aim is to overthrow Iran's system of clerical rule. Washington was initially more circumspect, saying its aim was to destroy Iran's missile capabilities and nuclear programme, although Trump ratcheted up his demands by also demanding the installation of a compliant Iranian government.

Israel had said it would kill whoever succeeded the elder Khamenei unless Iran ended its 'anti-Israel' policies. Trump repeated his demand on Sunday that Washington have a say in the selection of the new supreme leader.

"If he doesn't get approval from us, he's not going to last long," he told ABC News, adding that ending the war would be a "mutual" decision with Israeli Prime Minister Benjamin Netanyahu.

China said it opposes any targeting of Iran's new supreme leader, with foreign ministry spokesman Guo Jiakun telling reporters the younger Khamenei's appointment was purely an internal Iran matter. 

"China opposes interference in other countries' internal affairs under any pretext, and Iran's sovereignty, security, and territorial integrity should be respected," said Guo. "China calls for an immediate stop to military operations, a return to dialog and negotiations as soon as possible, and preventing further escalation of tensions."

Russia's President Vladimir Putin pledged his "unwavering support" to Mojtaba Khamenei, saying "At a time when Iran is confronting armed aggression, your tenure in this high position will undoubtedly require great courage and dedication."

Hezbollah reports Israeli raid in east Lebanon as war enters second week 

Hezbollah said on Monday its fighters clashed with Israeli troops in eastern Lebanon during an Israeli airborne raid overnight, in what would be the second such operation in the area in recent days, as the war between Israel and Hezbollah entered a second week.

A Hezbollah statement said its fighters "confronted the helicopters and the infiltrating forces with appropriate weapons".

The Israeli military kept up its airstrikes in the Hezbollah-controlled southern suburbs of Beirut on Monday, sending plumes of smoke across the city. It reiterated warnings to its residents to leave.

Human Rights Watch accused Israel of "unlawfully" using white phosphorus over residential parts of the southern Lebanese town of Yohmor last week.

White phosphorus, a substance that ignites on contact with oxygen, can be used as an incendiary weapon and can cause fires, horrific burns, respiratory damage, organ failure and death.

The Israel Defense Forces (IDF) have previously stated that they use smoke shells containing white phosphorus primarily as a smokescreen and not for targeting civilians, claiming their use complies with international law.

Nearly 400 people have been killed in Lebanon by Israeli strikes since March 2, Lebanon's health ministry reported on Sunday, including at least 83 children and 42 women. The toll does not otherwise distinguish between combatants and civilians.

Israel's military announced on Sunday that two Israeli soldiers had been killed in southern Lebanon, the first casualties in the Israeli army since the war began.

At least four people were killed in an Israeli strike on an apartment in the Ramada hotel building in central Beirut early on Sunday. Israel said it had targeted Iranian commanders operating in Beirut.

The US-Israeli attacks have killed at least 1,332 Iranian civilians and wounded thousands, according to Iran's UN ambassador. Lebanon has reported scores of people killed there.

In Israel, ambulance workers said one man was killed from shrapnel wounds at a construction site on Monday, raising to 11 the death toll in Iranian strikes.

The US military reported a seventh American had died from wounds sustained during Iran's initial counter-attack a week ago.