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Oil price surges as Iran’s hardliners pledge fealty to new leader Mojtaba Khamenei

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Iran’s hardliners staged a show of force on Monday (all times local), taking to the streets to proclaim their loyalty to new supreme leader Mojtaba Khamenei, whose rise appeared to dash hopes of a swift end to war in the Middle East causing havoc on global markets.

The prospect that one of the most severe disruptions ever to hit global energy supplies could last longer than previously expected sent oil prices surging in record leaps and stock markets into a nosedive.

Khamenei, 56, a Shi’ite cleric with a power base among the security forces and their vast business empire, has been declared unacceptable by United States President Donald Trump, who has demanded Iran’s unconditional surrender.

Iranian state media showed large crowds in several cities rallying behind the new leader, waving Iranian flags and holding portraits of his father Ali Khamenei, killed by strikes on the war’s first day.

In Isfahan, state TV reported the sound of nearby explosions from apparent airstrikes as loyalists gathered in the historic Imam Square, chanting “God is the Greatest” below a stage with portraits of Ali and Mojtaba Khamenei. In Tehran, a eulogist could be heard singing: “Either death or Khamenei, our blood leads to paradise.”

May 31, 2019 file photo shows, Son of Iran’s Supreme Leader Ayatollah Ali Khamenei, Mojtaba Khamenei, attends a demonstration to mark Jerusalem day in Tehran.

Mojtaba Khamenei. Photo: MORTEZA NIKOUBAZL / NURPHOTO VIA AFP

Political system rallies behind new leader

Politicians and institutions issued pledges of loyalty to the new supreme leader.

“We will obey the commander-in-chief until the last drop of our blood,” a defence council statement said.

Iranians reached by telephone were divided, with supporters of the authorities hailing the choice as a declaration of defiance and opponents fearful it would dash their hopes for change.

“I am so happy that he is our new leader. It was a slap in the face to our enemies that thought the system will collapse with the killing of his father. Our late leader’s path will continue,” said university student Zahra Mirbagheri, 21, from Tehran.

Many Iranians had initially celebrated the elder Khamenei’s death, weeks after his security forces killed thousands of anti-government protesters in the worst domestic unrest since the era of Iran’s 1979 revolution. But there has since been little sign of anti-government activity, with activists fearful of taking to the streets while Iran is under attack.

“The (elite Revolutionary) Guards and the system are still powerful. They have tens of thousands of forces ready to fight to keep this regime in place. We, the people, have nothing,” said Babak, 34, a businessman in the central city of Arak who asked to keep his family name confidential.

Israel says its war aim is to overthrow Iran’s system of clerical rule. US officials mainly say Washington’s aim is to destroy Iran’s missile capabilities and nuclear programme, but Trump has said the war could end only with a compliant Iranian government.

Israel had said it would kill whoever succeeded the elder Khamenei unless Iran ended its hostile policies. Fox News quoted Trump, who says he must have a say in the choice of new supreme leader, as saying that he was “not happy” with the choice.

Demonstrators wave Iranian national flags as they gather for a rally in support of the new Supreme Leader at Enghelab Square in central Tehran on March 9, 2026. Iran marked the appointment of Ayatollah Mojtaba Khamenei to replace his father as its supreme leader with a new barrage of missiles against Israel and the Gulf states on March 9, as the Middle East war sent oil prices soaring.

Demonstrators wave Iranian national flags as they gather for a rally in support of the new Supreme Leader at Enghelab Square in central Tehran on March 9, 2026. Photo: AFP

Oil surges past US$100 a barrel

The war has effectively shut the Strait of Hormuz, where a fifth of global oil and liquefied natural gas is shipped along Iran’s coast. With tankers unable to sail for over a week, producers have run out of storage and are being forced to stop pumping.

Sources said on Monday that Saudi Arabia had curbed production at two oil fields, making the world’s top oil exporter the latest Gulf country forced to reduce output, following Iraq and Kuwait in recent days.

Brent crude futures were up nearly 8.4 percent at US$100.54 per barrel around 1344 GMT (12.44am Tuesday NZ), having earlier shot as high as US$119.50 in what would have been the biggest one-day rise on record.

The prospect of a prolonged energy crisis – reviving memories of the Middle East oil shock of the 1970s – sent share markets in Asia and Europe into a tailspin, which carried over to Wall Street after it opened on Monday. Bond yields surged as investors bet that central banks would have to cancel rate cuts or impose hikes to fight inflation.

The price of gasoline has particular political resonance in the United States, where Trump’s Republicans hope to keep control of Congress in midterm elections in November. He won re-election in 2024 after pledges to end foreign wars and cut the cost of living.

“Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, ‌is a ⁠very small price to pay for U.S.A., and World, Safety and Peace,” Trump posted on Truth Social on Sunday night. “ONLY FOOLS WOULD THINK DIFFERENTLY!”

Tehran was choked in black smoke after an oil refinery was hit, an escalation in strikes on Iran’s domestic energy supplies which appeared to trigger attacks on Washington’s Gulf Arab allies. Thick smoke rose from a refinery in Bahrain, where state oil company Bapco declared force majeure.

Turkey said on Monday NATO air defences had shot down a ballistic missile that was fired from Iran and entered Turkish airspace, the second such incident of the war. Iran did not immediately comment on the report.

Israel’s military said it had launched new attacks in central Iran and struck the Lebanese capital Beirut, where Israel has extended its campaign after the Iran-backed militia Hezbollah fired across the border.

US-Israeli attacks have killed at least 1332 Iranian civilians and wounded thousands, according to Iran’s UN ambassador. Lebanon has reported scores of people killed there.

In Israel, ambulance workers said one man died from shrapnel wounds at a construction site near Tel Aviv’s international airport, raising to 11 the death toll from Iranian strikes.

Source: Reuters & RNZ

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Voters deliver historic rebuke to Trump as Democrats win House and Senate

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By Joseph Ax, Brad Heath and Jason Lange

Democrats seized control of both the Senate and House on Tuesday (US time), scoring sweeping victories in Republican strongholds for the first time in generations as tens of millions of voters delivered a scathing rebuke to President Donald Trump.

Voters in conservative bastions who had propelled the president to his second term in office just two years ago swung dramatically toward Democrats, fueled by deep frustration over the unpopular war with Iran, anxiety over the high cost of living and anger at Trump’s stewardship of the country.

Kansas elected its first Democratic senator since the Great Depression nearly a century ago. In South Carolina, a state that Trump carried by nearly 18 points in 2024, Democrats turned aside his hand-picked Senate candidate.

And in Texas, the biggest Republican state, Democrats ended a decades-long losing streak in seismic fashion, winning a Senate seat and ousting three-term Governor Greg Abbott.

The results will usher in a new era of divided government in Washington, following two years in which the Republican-controlled Congress rarely exercised its power to rein in Trump.

Once seated in January, Democrats are expected to use their power to investigate Trump’s administration, family and allies and demand concessions on major legislation. The Democratic Senate can block Trump’s nominees, including any US Supreme Court justices should a vacancy arise.

“There is now a generational remake of the Senate map that is going to change America,” said Chuck Schumer, the party’s Senate minority leader. “Americans voted for change, and now Democrats must deliver.”

Trump, who is barred by the US Constitution from seeking a third term, has exercised an iron grip on his party for most of the last decade. But the new balance of power in Washington may accelerate his lame-duck status, as attention turns toward the 2028 presidential race and potential successors begin competing for political influence in a post-Trump world.

Despite worries from Democrats that Trump might seek to overturn the election results, as he did in 2020, the president accepted the outcome, congratulating Democrats in an interview with Fox News. He also said he would work with Democrats on issues such as immigration, though he threatened to veto any “insane” bills they passed.

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Cold case solved: DNA links serial killer Ted Bundy to 1974 murder of Utah teen

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A Utah cold case tied to notorious serial killer Ted Bundy has been solved.

Fifty-two years to the day her body was found, detectives closed the investigation into the murder of 17-year-old Melissa Ann Smith. DNA evidence identified Bundy as the killer, investigators revealed Tuesday.

Smith’s body was found by hunters in a wooded area bordering Salt Lake and Summit counties on 27 October, 1974. The investigation into her murder has remained open since that day, until now.

A recent break in a Utah County cold case is being attributed to the resolution. Investigators say the same DNA profile used to identify Bundy as the killer of Laura Ann Aime was used to solve Smith’s murder.

Developments in that case brought the Smith investigation back to the surface and helped resolve the decades-old mystery, Summit County Sheriff Kacey Bates said.

Tuesday’s announcement was hinted at by Utah County investigators in April, when they announced the closure of the Aime cold case, which was tied to Bundy. At the time, a UCSO detective said the DNA profile used to link Bundy to the murder had been shared with other departments, with the hope that it could lead to closing more cases.

Bundy, who is confirmed to have killed and assaulted women across Washington, Oregon, Colorado, Utah and Florida between 1974 and 1978, confessed to 28 murders but is believed to be responsible for hundreds of deaths.

He was executed by electric chair in Florida in 1989.

Source: RNZ & CNN

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Netanyahu touts Trump endorsement on eve of vote, suggests they may restart war on Iran

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Israeli Prime Minister Benjamin Netanyahu boasted of his endorsement from Donald Trump on the eve of Israel’s election, suggesting the two leaders could restart their war against Iran if he wins, after Trump said they should “finish the job”.

“US President Donald Trump has come with a friendship that has never existed before between an Israeli prime minister and an American president. And it is doubtful we will ever have such a friendly president again,” Netanyahu said in a televised appearance late on Sunday night. “He has another two years, and he says he is calling on you to vote for me.”

In his own social media post on Sunday, Trump, who launched the Iran war jointly with Netanyahu in February, said: “Vote for Bibi Netanyahu for Prime Minister, we have to finish the job that we started!”

Netanyahu said Trump was willing to take action “that would finally, finally, remove the Iranian threat”, but only as long as Netanyahu himself remains in power.

“And I have already instructed the Mossad and the IDF (military) to bring down this regime, to bring down this regime because that is the only way to put an end to this threat,” Netanyahu said, referring to Israel’s main intelligence service and military.

Asked for comment on Netanyahu’s remarks, White House Deputy Press Secretary Anna Kelly said: “As President Trump stated, Iran is in very bad condition, both economically and militarily, and the blockade will remain in full force and effect, with oil flowing in record numbers of barrels through the Hormuz Strait.”

“The United States will not be attacking Iran at any time prior to the midterm elections,” Kelly added via email, referring to the November 3 vote in the US.

Netanyahu’s leading opponent, centrist former military Chief of Staff Gadi Eisenkot, posted his own comments on social media, praising Trump as “a true friend of Israel”.

“I value his efforts and his commitment to Israel’s security, and I am confident that he will work in full cooperation with any leader chosen by the people.”

Former Israeli Defence Minister Benny Gantz (2nd-R) and former Israeli army chief of staff Gadi Eisenkot (R), both members of the current Israeli five-person war cabinet led by Prime Minister Benjamin Netanyahu, meet with the visiting US Secretary of State in Tel Aviv on February 8, 2024. (Photo by Mark Schiefelbein / POOL / AFP)
Former Israeli Defence Minister Benny Gantz (2nd-R) and former Israeli army chief of staff Gadi Eisenkot (R).

Mark Schiefelbein / POOL / AFP

Eisenkot accuses Netanyahu of fear-mongering

Tuesday’s vote, Israel’s first since the October 7, 2023, Hamas attacks, is the first chance for voters to deliver a verdict on the worst security failure in generations and the wars on multiple fronts that followed.

With Netanyahu already at the helm of the most right-wing government in Israeli history, politics have shifted even further to the right. Nearly all Jewish-led parties, including that of the hawkish Eisenkot, now oppose the “two-state solution” that underpinned decades of peace negotiations with the Palestinians.

But many voters say the divisive politics of Israel’s longest-serving leader make the country weaker. Polls suggest Netanyahu’s Likud Party will lose seats, potentially depriving his coalition of right-wing, far-right and ultra-Orthodox parties of its narrow majority.

Eisenkot and an array of opposition parties ranging from the rump of the centre-left to the right, also have no clear path to unseat him.

Netanyahu, 77, is an unrivaled master of political survival: the only time since 2009 that opponents managed to wrest him briefly from the premiership, it took four inconclusive elections within two years to get him out. He was back 18 months later.

Neither side planned major public events for Monday. But both posted on social media, drumming on the election’s major themes: for Netanyahu, that he is the only leader with the mettle to face down Israel’s enemies; for his opponents, that his divisive politics have weakened the country.

Netanyahu shared an AI-generated video on Monday of Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, whose father Ali Khamenei was killed on the first night of US-Israeli strikes on Iran in February. Lying in a hospital bed, the younger Khamenei says his own vote would be “definitely not Bibi. Another term like this and I will be meeting my father sooner than expected.”

On Sunday Netanyahu posted a computer-generated photo of a mushroom cloud over Tel Aviv, saying Israel was in existential danger from Iran.

Eisenkot responded by accusing him of “relying on a campaign of fear-mongering, lies, and threats – including images of nuclear bombs in the heart of Tel Aviv. This time, it won’t work for him.”

Trump’s endorsement of Netanyahu carries its own political risks a week before a legislative election in which his own Republicans are seeking to hold onto power.

The Iran war is deeply unpopular in the United States, blamed for a surge in prices especially for fuel. Major fighting has been suspended for months after ceasefire negotiations held without Israeli participation.

Source: Reuters & RNZ

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