Iran and Israel have launched a fresh wave of attacks on each other in a development that continues to raise fears of the wider region being plunged into a destabilising conflict. Iranian missiles struck Tel Aviv and the port city of Haifa shortly before dawn on Monday,

Iranian missiles damaged the US embassy in Tel Aviv, escalating tensions. Israel retaliated with strikes on Iran's energy sector, while both sides continued attacks.

Sterling was muted against the dollar on Monday ahead of a Bank of England meeting this week, with markets adopting a wait-and-see approach to rising geopolitical uncertainty, as a conflict between Israel and Iran showed no sign of abating.

The president had opposed Israeli action against Iran but came to believe that Israel had reason to act and that the U.S. would have to lend some support.

The war between Israel and Iran is in its fourth day, with Israel striking at military sites and Iran's nuclear program and Iran firing missiles in retaliation

Leaders from the Group of Seven nations begin annual talks on Monday amid wars in Ukraine and the Middle East that add to global economic uncertainty, as host Canada tries to avoid a clash with U.S. President Donald Trump.

Attacks force shift in U.S. plan for diplomatic deal in Iran and efforts to disentangle from region.

Donald Trump declared that, “for the first time in a thousand years, the world will look at this region not as a place of turmoil and strife, and war and death, but as a land of opportunity and hope.”

Gold rose to a near two-month high on Monday, as intensified clashes between Israel and Iran over the weekend stoked fears of a broader regional conflict, pushing investors towards safe-haven assets.

Jon Faust, who advised three Fed chairs, doesn’t see an interest-rate cut until December — an even then, the odds of a move are just 50/50.