The markets have mostly shrugged off Russia's invasion of Ukraine and the Israel-Hamas war. But Israel's conflict with Iran is still in its early days.

"The full strength and might of the U.S. Armed Forces will come down on you at levels never seen before," Trump warned.

Israel hit more targets in Tehran and Iranian missiles fired at Israel killed at least 14, as the conflict entered a third day

Israel bombarded Tehran, the Iranian capital, with a new wave of strikes on Sunday afternoon, as both sides dismissed international calls to de-escalate the conflict and warned of more to come in a clash that is rapidly expanding in scope and intensity.

The missile and air war that Israel and Iran have spent decades planning for has come, and it is spectacular and terrifying. Israeli officials say they need at least two weeks to degrade Iran’s nuclear and missile capabilities.

Oil prices climbed on Monday, extending Friday's rally, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.

TOKYO (Reuters) -Oil prices jumped in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, heightening fears that escalating battle could trigger a broader regional conflict and widely disrupt oil exports from the Middle East.

Crude oil futures jumped more than 3% Sunday after Israel struck two natural gas facilities in Iran, raising fears that the war will expand to energy infrastructure and disrupt supplies in the region.