US suffers first fatalities of conflict as Iran’s counterstrikes widen

Arsalan Shahla and Patrick Sykes

(Bloomberg) — The US said the first Americans have been killed in a war with Iran that’s spread to several countries in the Middle East, while threatening to upend energy markets.

Three US service members were killed and five “seriously wounded” during operations against the Islamic Republic, US Central Command said on Sunday.

President Donald Trump said in a social media post earlier that Iran’s supreme leader, Ayatollah Ali Khamenei, had been killed. Iran confirmed the news hours later, saying the government will observe 40 days of national mourning for the 86-year-old ruler, who was killed in his office compound.

“Heavy and pinpoint bombing, however, will continue uninterrupted throughout the week or as long as necessary,” Trump said.

The war spread across the region on Sunday, a day after the US and Israel started attacks on the Islamic Republic, drawing a swift and widespread response. Iranian missiles struck buildings in Tel Aviv, while defenses in Saudi Arabia, Qatar, Bahrain and Kuwait intercepted incoming projectiles.

Dubai’s main airport, the world’s busiest aviation hub, was hit, and nearly all civilian air traffic is closed across the Gulf. Dubai landmarks including the luxury Palm Jumeirah island and Burj Al Arab hotel incurred damage, as did skyscrapers in Abu Dhabi.

Both Israel and the United Arab Emirates announced fatalities from the waves of attacks from Iran. Iranian television reported on Saturday that more than 200 people have been killed in the strikes on the Islamic Republic.

Israel estimates its strikes destroyed hundreds of Iranian ballistic missiles and knocked out about half of the nation’s launchers for the weapons, according to an Israeli military official.

The conflict has reverberated across global energy markets. Oil has already gained almost 20% this year, largely due to US-Iran tensions, and OPEC+ on Sunday agreed to resume production increases next month to counter an expected further rally in crude prices. Oil markets are closed for the weekend.

The Strait of Hormuz, a critical transit for oil and gas linking the Persian Gulf to the open sea, was described by Iran’s Tasnim news agency as being practically shut, with tankers increasingly avoiding the waterway. Two ships were reportedly struck around the coast of Oman.

The assassination of Khamenei, the ruler who dominated the Islamic Republic for more than three decades, took the US-Israeli campaign to quash Iran’s regional influence to a new level. Iran President Masoud Pezeshkian vowed “revenge and retribution” for the killing, calling it a “legitimate right,” and other officials vowed to intensify the country’s military response on Sunday.

Khamenei did not publicly designate a successor, and the Assembly of Experts, the clerical body responsible for selecting the supreme leader, is required to appoint a new one. In the interim, a council comprising the president, the head of the judiciary and a jurist from the Guardian Council assumes the leader’s duties. The council will meet later Sunday, Iran’s national security chief Ali Larijani said.

Videos from inside Iran flooded social media following news of the death, showing crowds dancing and chanting in the streets in celebration. Other clips showed mourners. In Pakistan, at least nine pro-Iranian protesters were killed in clashes with police as they tried to storm the gates of the US Consulate.

The UAE and Saudi Arabia condemned Iran’s assault in blunt terms, suggesting Gulf Arab states are losing patience.

Anwar Gargash, a senior advisor to the UAE leadership, urged Iran via X to “return to your senses,” warning that the Islamic Republic is now isolated at a critical time. Saudi Arabia summoned Iran’s ambassador in response to what it called “blatant” attacks which targeted the kingdom.

The unfolding war could be a defining moment for Trump, risking a drawn-out regional conflict that leads to a surge in energy prices and American casualties ahead of midterm elections in November. The aim of the attack is “eliminating imminent threats from the Iranian regime,” Trump said in a video posted on his Truth Social platform early Saturday, urging Iranians to “take over your government.”

 

Israel’s military said a total of 1,200 missiles were dropped on Iran over a 24-hour period, compared with 330 munitions used in the opening day of the 12-day war in June last year.

About 200 Iran’s missile launchers were destroyed and dozens more rendered inoperable, an Israeli military official said, asking not to be identified discussing sensitive information.

A production site for explosives used in ballistic and cruise missiles, rockets and drones was also destroyed, as well as four facilities used in the production of ballistic missile engines, the official said.

US forces successfully defended against hundreds of Iranian missile and drones, Central Command said in a statement, adding there were no reports of US casualties or combat-related injuries.

Targets included Islamic Revolutionary Guard Corps command and control facilities, Iranian air defenses, missile and drone launch sites and military airfields, according to Centcom. Israel said the force’s commander, Mohammad Pakpour, was killed.

Iranian media reported strikes on defensive and civilian sites, including one that killed over 140 people at a school in Hormozgan. Several large explosions have been reported in Tehran, the capital.

Iran’s response outweighed its retaliation to Israeli airstrikes in June — both in scale and speed — as Tehran treats the conflict as an existential threat to the government born out of the Islamic Revolution in 1979.

The prospect of a weeks-long regional war is a nightmare scenario for US allies in the Gulf such as the UAE, Saudi Arabia and Qatar. They pushed hard for Iran and the US to agree a diplomatic solution to their impasse over Tehran’s nuclear activities, fearing the chaos and flight shutdowns now unfolding could hit their economies and deter tourists as well as foreign investment.

Trump said the military operation was required after Iran refused to renounce nuclear weapons, which Tehran has repeatedly said it isn’t pursuing. The most recent round of talks took place on Thursday.

Shortly before Trump announced Khamenei’s death, a senior administration official told reporters that Iran refused to move on several sticking points, including moves to curtail regional proxy militant groups. Trump saw that as a key issue in any deal that could be reached, the official said.

–With assistance from Dana Khraiche, Leen Al-Rashdan, Alisa Odenheimer and Eltaf Najafizada.

More stories like this are available on bloomberg.com

©2026 Bloomberg L.P.