On March 2nd, the conflict in the Middle East continued to escalate. Following joint actions by the US and Israel, Iran launched a full-scale retaliation, attacking Israeli and Middle Eastern US military bases. Its missile frigate was sunk by the US military in the Gulf of Oman; Israel conducted airstrikes on Tehran, destroying key facilities such as the Iranian Internal Security Headquarters and Naval Headquarters. The US military confirmed 3 deaths and 5 injuries, while Iran claimed to have caused 560 casualties on the US side. The Houthi armed forces publicly joined the fight, firing missiles at Israel in support of Iran.

Diplomatically, the US-Iran Vienna technical consultations scheduled for today were canceled; US Secretary of State Blinken visited Israel to coordinate Iran policy. Trump stated that military actions against Iran could last four weeks and expressed willingness to engage in dialogue with Iran’s new leadership; Iran announced a 40-day national mourning period and will elect a new Supreme Leader.

The market was significantly impacted: Brent crude oil surged past $85 per barrel, gold reached a historic high of $5,374; stock markets in multiple Middle Eastern countries plummeted, and global shipping giants suspended routes through the Strait of Hormuz, increasing supply chain risks. $ETH