Israel and Iran have opened a new chapter in their long history of conflict. Israel launched a major attack with strikes early Friday that set off explosions in the Iranian capital of Tehran.

Iranian media reported that Israel struck the South Pars Gas Field in what would be the first attack on an Iranian energy site.

Stock markets across the Gulf fell on Sunday morning after Israel and Iran launched fresh attacks on each other overnight, sparking fears of a widening conflict in the Middle East.

Following Russia's full scale invasion of Ukraine in 2022, oil prices spiked to nearly $130 a barrel, contributing to higher prices for UK shoppers on everything from transport to food. However the cost of a barrel of oil, currently around $75, is still lower than it was in January.

Under the Islamic Republic that took power in 1979, enmity toward Israel has been a core ideological tenet of Iranian foreign policy and a key driver in its regional policy. Over decades, their rivalry played out mainly through indirect actions by Iran and by covert operations from Israel.

Israel’s leader and President Trump appeared to bet they can persevere, but other world leaders warned of unintended outcomes in a volatile region.

Israeli stocks dropped on their first day of trading after Prime Minister Benjamin Netanyahu’s government began airstrikes against Iran. Saudi Arabia’s equity benchmark slid as concerns of a wider conflict gripped the region.