US crude futures fell in early Asian trading hours on Tuesday to their lowest level in more than a week after Trump said a ceasefire had been agreed, relieving worries of supply disruption in the region.
END TO THE FIGHTING?
There did not appear to be calm yet in the region.
The Israeli military issued two evacuation warnings in less than two hours to residents of areas in the Iranian capital Tehran, one late on Monday and one early on Tuesday.
Israeli Army radio reported early on Tuesday that alarms were activated in the southern Golan Heights area due to fears of hostile aircraft intrusion.
Earlier on Monday, Trump said he would encourage Israel to proceed towards peace after dismissing Iran's attack on an American air base that caused no injuries and thanking Tehran for the early notice of the strikes.
Iran's handling of the attack recalled earlier clashes with the United States and Israel, with Tehran seeking a balance between saving face with a military response but without provoking a cycle of escalation it can't afford.
Tehran appears to have achieved that goal.
Iran's attack came after US bombers dropped 30,000-pound bunker-busters on Iranian underground nuclear facilities over the weekend, joining Israel's air war.
Much of Tehran's population of 10 million has fled after days of bombing.
The Trump administration maintains that its aim was solely to destroy Iran's nuclear program, not to open a wider war.
"Iran was very close to having a nuclear weapon," Vice President JD Vance said in an interview on Fox News' "Special Report with Bret Baier."
"Now Iran is incapable of building a nuclear weapon with the equipment they have because we destroyed it," Vance said.
But in a social media post on Sunday, Trump spoke of toppling the hardline clerical rulers who have been Washington's principal foes in the Middle East since Iran's 1979 Islamic Revolution.
Israel, however, had made clear that its strikes on Evin prison - a notorious jail for housing political prisoners - and other targets in Tehran were intended to hit the Iranian ruling apparatus broadly, and its ability to sustain power.
Iran fires missiles at US base in Qatar, Trump calls for peace
Early on Monday, Iran launched a missile attack on an American air base in Qatar that caused no injuries, and President Donald Trump dismissed it as a"weak response" to US attacks.
The attack on Al Udeid Air Base in neighbouring Qatar threatened to widen a conflict that began on June 13 with an Israeli strike on Iran targeting its nuclear programme and ballistic missiles.
Iran had threatened to retaliate against the United States after US bombers dropped 30,000-pound bunker-busters on Iranian underground nuclear facilities over the weekend, joining Israel's air war against Iran, and Trump had raised the possibility of the Iranian government being toppled.
"We did not assault anyone, and we will never accept being assaulted by anyone," Iran's Supreme Leader Ayatollah Ali Khamenei said in a statement."We will not submit to anyone’s aggression – this is the logic of the Iranian nation."
Iran gave advance notice to the US via diplomatic channels hours ahead of the attack, as well as to Qatari authorities. Trump seized on that as a positive sign.
"I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured," Trump wrote on his Truth Social media site."Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same."
He said Iran fired 14 missiles at the air base, calling it"a very weak response, which we expected, and have very effectively countered."
"I am pleased to report that NO Americans were harmed and hardly any damage was done," Trump wrote."Most importantly, they’ve gotten it all out of their 'system,' and there will, hopefully, be no further HATE," Trump wrote.
Iran's handling of the attack recalled earlier clashes with the United States and Israel, with Tehran seeking a balance between saving face with a military response but without provoking a cycle of escalation it can't afford.
The country's Foreign Minister Abbas Araqchi said Iran was ready to respond again in case of further action by the United States, according to a statement posted by the ministry's account on Telegram.
The attack strained Iran's relationship with its Arab neighbours: Qatar condemned it, as did Bahrain, the United Arab Emirates, Saudi Arabia, Kuwait and Iraq.
"There are deep ties between the two states (Iran and Qatar) and the two nations, but the attack undoubtedly calls for a genuine meeting and a clear stance," Qatari foreign ministry spokesperson Majed Al Ansari said at a press conference.
Israel said it carried out its most extensive wave of attacks on Tehran ever on Monday.
Targets included a Tehran prison where Iran's leadership holds political opponents, in a renewed demonstration of its willingness to strike beyond its previously stated military and nuclear targets and attack key pillars of Iran's ruling system.
Despite Iran's threats to challenge oil shipments from the Gulf, oil prices fell 7% in volatile trading, suggesting traders doubted the Islamic Republic would follow through on any action that would disrupt global supplies.
Qatar, situated just across the Gulf from Iran, reopened its airspace after a brief suspension, its civil aviation authority said early on Tuesday.
Iran's foreign minister met Russian President Vladimir Putin in Moscow as Tehran sought backing from one of its last major power friends for its next steps.
STRIKING 'REGIME TARGETS'
Israel made clear that its strikes on Evin prison and other targets in Tehran were intended to hit the Iranian ruling apparatus broadly and its ability to sustain power.
Iran's IRIB state broadcaster released a video showing rescue workers combing the flattened wreckage of a building at the prison, carrying a wounded man on a stretcher. The Mizan news outlet of Iran's judiciary said urgent action was being taken to protect the health and safety of inmates there.
Evin has long been Iran's primary prison for political detainees and people accused of espionage, as well as the site of executions that remain strong memories for the opposition. Several high-profile foreign prisoners are also held there.
Israel's military said it had also struck Revolutionary Guard command centres responsible for internal security in the Tehran area.
The military was"currently striking, with unprecedented force, regime targets and governmental repression bodies in the heart of Tehran," Defence Minister Israel Katz said in a statement.
Much of Tehran's population of 10 million has fled after 10 days of bombing. Tasnim News Agency reported a strike at an electricity feeder station in the Evin neighbourhood. Power company Tavanir reported that some areas in the capital experienced electricity cuts.
LIMITED OPTIONS
Since the US joined Israel's campaign by dropping massive bunker-buster bombs on Iranian nuclear production sites on Sunday morning, Iran has repeatedly threatened to retaliate.
"Mr Trump, the gambler, you may start this war, but we will be the ones to end it," Ebrahim Zolfaqari, spokesperson for Iran's Khatam al-Anbiya central military headquarters, said on Monday in a recorded, English-language video statement.
The Trump administration maintains that its aim is solely to destroy Iran's nuclear programme, not to open a wider war. But in a social media post on Sunday, Trump spoke of toppling the hardline clerical rulers who have been Washington's principal foes in the Middle East since Iran's 1979 Islamic Revolution.
Five insiders with knowledge of the discussions said efforts had been ramped up to anoint a successor for Iran's 86-year-old supreme leader, Ayatollah Ali Khamenei. His son Mojtaba, 56, and Hassan Khomeini, 53, grandson of the revolution's founder Ayatollah Ruhollah Khomeini, are now seen as the frontrunners, they said.
Americans are anxious over a brewing conflict between the US and Iran and worry the violence could escalate after President Donald Trump ordered the bombing of Iranian nuclear facilities, according to a Reuters/Ipsos poll that closed on Monday.
