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The ongoing conflict in the Middle East, specifically the US-Israel war on Iran, has sent shockwaves through the global economy, with the Bank of England predicting that over 1.3 million more UK households could face increased mortgage payments. Financial markets have reacted swiftly, with banks pulling around 1,500 mortgage products and raising interest rates on their remaining 7,000 home loan products in recent weeks, according to the Bank's financial policy committee (FPC). The FPC warns that approximately 5.2 million borrowers, or roughly 58% of borrowers across the country, could face higher mortgage payments by the end of 2028, up from 3.9 million before the conflict began. The data provider Moneyfacts reported that the average two-year fixed residential mortgage rate has risen to 5.84%, up from 4.83% at the start of March. Caitlyn Eastell, a personal finance analyst at Moneyfacts, noted that the impact on borrowers has been almost immediate, with borrowing costs sharply rising. The FPC emphasized that a prolonged war increases the possibility of large, frequent and possibly overlapping shocks that could put global financial stability at risk. The UK's economic outlook has deteriorated, increasing pressure on households and businesses, with the FPC adding that a prolonged conflict could amplify risks that were already present before the conflict began. The Bank of England governor, Andrew Bailey, cautioned that markets may be getting ahead of themselves by pricing in interest rate hikes in response to the Iran war, stating that the Bank's remit is to cause the least damage to the economy and jobs.

The Israeli military has confirmed that four soldiers were killed in combat in southern Lebanon, where its forces are engaged in clashes with Hezbollah fighters following a ground invasion.In a statement, the army named three soldiers from the same battalion who 'fell during combat'. A separate statement confirmed another soldier's death in the same incident, with two others wounded.This brings the total number of Israeli soldiers reported killed since fighting began on March 2 to ten, following a US-Israeli joint attack on Iran. The Lebanese Ministry of Public Health reports that over 1,200 people have been killed in Israeli attacks on Lebanon, with more than a million displaced.The escalation comes after the United Nations Interim Force in Lebanon (UNIFIL) reported that two peacekeepers were killed in an explosion near the southern Lebanese village of Bani Haiyyan. Another peacekeeper was killed by a projectile on Sunday.Israeli Prime Minister Benjamin Netanyahu has ordered the military to expand its invasion in southern Lebanon, aiming to extend a 'buffer zone' to the Litani River. Israel's far-right ministers have urged Netanyahu to annex southern Lebanon, as the military destroys infrastructure to isolate the area.Al Jazeera's Lebanon correspondent, Zeina Khodr, reported that Monday night marked a new escalation as Israel opened a new front in Lebanon's Bekaa Valley, targeting strategic supply lines for Hezbollah. Khodr noted that Hezbollah Secretary-General Naim Qassem acknowledged the imbalance of power but vowed to make the war 'costly' for Israel.The conflict in Lebanon is part of the ongoing US-Israel war on Iran, which has resulted in over 1,340 deaths since February 28. Netanyahu has reportedly told US officials that any future agreement between the US and Tehran will not stop Israel's actions in Lebanon.

A Kuwaiti oil tanker was attacked by an Iranian drone at Dubai port on Monday night, causing significant concern for the safety of civilian maritime workers in the region. The tanker, owned by Kuwait's state oil company, was carrying approximately 2 million barrels of oil, valued at over $200 million at current prices. The attack occurred amidst the ongoing US-Israel war on Iran, which has already led to thousands of deaths, disruptions in energy supplies, and fears of a global economic downturn. The incident has sparked a significant increase in oil prices, with Brent crude surging above $118 a barrel on Tuesday, marking a 59% gain for March, the largest monthly increase on record. Following the attack, dozens of tankers in the area have chosen to leave, seeking safer locations. A crew member on a nearby oil tanker described the situation as terrifying, stating, 'There's no safe place here.' The incident has also drawn a response from Donald Trump, who warned that the US would obliterate Iran's energy plants and oil wells if it did not open the Strait of Hormuz. The attack on the Salmi tanker, which was headed to Qingdao, China, has highlighted the vulnerability of maritime traffic in the region and the potential for further escalation in the conflict. Despite the fire being extinguished and no injuries reported, the situation remains tense, with many questioning the safety of their operations in the area.

UK house prices experienced a significant increase in March, rising by 0.9% month-on-month, the largest gain since December 2024. This growth, reported by Nationwide, pushed the average UK house price to £277,186. On an annual basis, house price growth accelerated to 2.2% in March, up from 1% in February.Despite this positive trend, Nationwide warned that the outlook has been clouded by the US-Israel war on Iran, leading financial markets to expect the Bank of England to raise the base rate three times over the next 12 months, from the current 3.75%. This has resulted in a sharp rise in longer-term interest rates, which underpin fixed-rate mortgage pricing.As a result, mortgage rates have risen above 5% in recent weeks, with the average two-year fixed-rate mortgage reaching 5.77% and the five-year fixed-rate mortgage increasing to 5.7%. This rapid deterioration in affordability is expected to soften housing market activity.Northern Ireland continues to show the strongest growth in house prices across the UK, with a 9.5% year-on-year increase in the first quarter to £225,269. In contrast, two regions experienced year-on-year declines: the outer south-east of England (-0.7%) and East Anglia (-0.4%).

Spain has taken a firm stance against the US-Israel war on Iran by closing its airspace to US military aircraft involved in attacks. This decision, confirmed by Defence Minister Margarita Robles, underscores Spain's position as a leading critic of the conflict in Europe. The move forces military planes, including those based in the UK and other European countries, to bypass Spain when heading to targets in the Middle East, except in emergency situations. This development comes after Spain denied the US permission to use its military bases for operations related to the war. “We don’t authorise either the use of military bases or the use of airspace for actions related to the war in Iran,” Robles stated, emphasising Spain's clear stance. She described the war as “profoundly illegal and profoundly unjust.” Spanish Prime Minister Pedro Sánchez has been vocal in his opposition to the war, calling for the US, Israel, and Iran to cease hostilities. His statements have previously drawn criticism from former US President Donald Trump, who threatened to cut off trade with Spain. The decision to restrict airspace access could potentially worsen Spain's already strained relations with the White House. However, Economy Minister Carlos Cuerpo reiterated that Spain's stance is part of its broader refusal to participate in or contribute to a war initiated unilaterally and against international law. While US military aircraft can still use Spanish bases for logistics support under a bilateral agreement, 15 American KC-135 refuelling planes were recently diverted from bases in Spain to those in France and Germany.

In a significant diplomatic development, foreign ministers from Pakistan, Turkiye, Egypt, and Saudi Arabia have convened in Islamabad for crucial talks aimed at de-escalating the intensifying US-Israel war on Iran. The regional summit comes amid heightened tensions in the Middle East as international efforts intensify to prevent further conflict escalation.Adding complexity to the diplomatic landscape, Iran's Parliament Speaker Mohammad Bagher Ghalibaf has made a serious allegation, claiming that the United States is secretly plotting a ground attack against Iran despite public assertions of pursuing diplomatic channels to end the ongoing hostilities. This accusation raises questions about the sincerity of recent diplomatic efforts and suggests a significant disconnect between public statements and private intentions.The Islamabad meeting represents a coordinated regional response to the growing crisis, with neighboring nations attempting to play a constructive role in finding peaceful resolutions. The participation of these key countries underscores the widespread concern about the potential regional and global implications of the conflict.

The US-Israel war on Iran has entered its 30th day, with diplomatic efforts intensifying to bring an end to the conflict. Foreign ministers from Pakistan, Turkiye, Egypt, and Saudi Arabia are scheduled to hold talks in Islamabad, aimed at de-escalating the situation.The conflict has escalated across the Middle East, with Yemen's Houthis joining the war by firing missiles at Israel on Saturday. Tehran has threatened retaliatory attacks on Israeli and US universities in the region after the United States and Israel bombed Iranian universities.US-Israeli strikes have continued, with powerful explosions rocking Tehran on Sunday morning, killing two people and wounding five in a residential area. The Iranian Fars news agency reported that US-Israeli attacks also hit the Saadat Abad neighbourhood of northern Tehran and another residential area in the west of the capital.In the Gulf, Saudi Arabia intercepted and destroyed 10 drones in the early hours of Sunday, while the UAE Ministry of Defence said its air defences responded to missiles and drone threats. Emirates Global Aluminium reported that an Iranian attack on Saturday inflicted significant damage on one of its sites in Abu Dhabi and wounded six employees.Iran's power has been underestimated, according to Al Jazeera's Mohamed Vall, reporting from Tehran. He said that one month into the war, Iran has proved that its power was underestimated by the enemy, who thought that the war would be a short excursion and that the country would capitulate after just a few days of bombardment.The conflict has also led to protests in Lebanon, with protesters taking to the streets in Beirut after Israeli forces killed journalists Fatima Ftouni and her brother and colleague, Mohammed, of Al Mayadeen, as well as Al-Manar's Ali Shuaib on Saturday.In Israel, people took to the streets in Tel Aviv, rallying against the war and increased settler violence, as they clashed with police. The Israeli military announced the death of a soldier, Moshe Yitzhak HaCohen Katz, in southern Lebanon as Hezbollah's attacks on northern Israel continue.The US Central Command (CENTCOM) said some 3,500 additional soldiers arrived in the Middle East on board the USS Tripoli. The Washington Post reported that the Pentagon is preparing for weeks of ground operations in Iran, although Al Jazeera could not independently verify the report.

The ongoing US-Israel war against Iran has sent shockwaves through global markets, resulting in a substantial increase in everyday living costs for many Americans. Following the US-Israeli strikes on Iran, which prompted retaliatory attacks on US allies in the region and Iran's decision to close the Strait of Hormuz, a critical maritime passage, costs have surged across the US. In particular, gas prices have spiked sharply, with the national average rising by roughly 30% over the past month. Additionally, grocery bills, mortgage rates, and fertilizer costs have also climbed. As a result, many Americans are being forced to reassess their finances and cut back drastically on basic necessities such as food, clothing, and electricity. Individuals from various parts of the country, including Indianapolis, Massachusetts, New York, and Pennsylvania, have shared their struggles with rising costs and how they are impacting their daily lives and long-term financial planning. For instance, an Indianapolis bank employee named Lore has had to reduce his commuting and is holding on to his old car for as long as possible to avoid the financial burden of a new one. A Massachusetts-based librarian's husband has had to take on extra work to keep up with rising expenses, often working 12 to 14 hour days. An elderly woman in New York described living a very frugal existence and struggling to make ends meet each month. The strain is also hitting small business owners, with a tattoo artist and father in Pennsylvania forced to shut down his private studio after three years due to decreased demand. Rising costs are also intensifying anxieties around healthcare, with a bread factory worker in Michigan expressing concerns about his health and the potential risks he faces simply getting to work.

Iranian President Masoud Pezeshkian has issued a stern warning to neighboring countries, urging them not to allow the US and Israel to use their territory to launch attacks against Iran. In a post on X, Pezeshkian emphasized that Iran does not initiate preemptive attacks but will strongly retaliate if its infrastructure or economic centers are targeted. “To the countries of the region: If you want development and security, don’t let our enemies run the war from your lands,” Pezeshkian stated. This message is part of a broader effort by Iran to prevent the escalation of the ongoing conflict with the US and Israel. The conflict began on February 28, when the US and Israel launched air strikes across Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei. Since then, the situation has shown no signs of de-escalation, with Israel announcing daily strikes on Iran and Tehran continuing to target its arch-rival and countries hosting US military assets. In recent developments, several Gulf states have been targeted in attacks. In Kuwait, multiple drone attacks damaged the international airport's radar system, while in Abu Dhabi, strikes caused debris to fall near the Khalifa Economic Zone, injuring six people. Iran's military claimed to have struck a Ukrainian anti-drone system depot in Dubai, which it alleged supported US forces. Iranian Foreign Minister Abbas Araghchi also urged regional countries to distance themselves from the US, reiterating Iran's stance that it will not tolerate the use of neighboring territories for hostile actions. The conflict has resulted in significant disruptions across the region, with at least 15 American soldiers wounded in an Iranian attack on a Saudi airbase on Friday. The situation remains volatile, with alarm sirens activated in Bahrain and Saudi Arabia's defense ministry reporting ballistic missile and drone attacks, all of which were allegedly shot down.