Israel-Iran War: France Allows Temporary US Aircraft Deployment

Gold prices edged higher as escalating tensions in the Middle East pushed investors toward safe-haven assets. Spot gold rose 0.8% to $5,177.26 per ounce, while US gold futures for April delivery climbed 1% to $5,186.40. The gains were also supported by a softer US dollar, which eased from a more than three-month high earlier this week, making dollar-priced gold cheaper for holders of other currencies and improving demand for the precious metal.

European Union members are sending military aid to reinforce defences in Cyprus, reported CNBC TV18.

Authorities on the Mediterranean island had earlier shut down the international airport on March 4 after a suspected drone approached its airspace.

Kuwait’s Ministry of Interior said an explosion on a tanker occurred outside the country’s territorial waters, more than 60 kilometres from Mubarak al-Kabeer port.

Earlier, the UK Maritime Trade Operations (UKMTO) said that the master of a tanker at anchor reported hearing and seeing a large explosion on the vessel’s port side before a small craft was seen leaving the area, Al Jazeera reported. All crew members were reported safe. However, the vessel had taken on water and oil was seen leaking into the sea from a cargo tank, raising concerns about potential environmental impact.

Reliance Industries shares rose after brokerages said the recent correction appeared excessive and pointed to potential gains from higher crude prices amid Middle East tensions, reported The Economic Times.

Analysts expect possible supply disruptions to lift refining margins, with diesel cracks seen rising to $35–$42 per barrel, which could support Reliance’s oil-to-chemicals segment.

The Pentagon has identified two more US soldiers killed in a drone strike in Kuwait on Sunday, according to Al Jazeera.

They are Chief Warrant Officer 3 Robert Marzan, 54, of Sacramento and Major Jeffrey O’Brien, 45, of Indianola, Iowa. The Pentagon had earlier identified four other soldiers killed in the same attack on March 3.

Qatar Airways will start operating a limited number of relief flights from March 5 to assist passengers stranded due to the current situation in the region.

The airline plans services from Muscat to London Heathrow, Berlin, Copenhagen, Madrid, Rome and Amsterdam, along with a flight from Riyadh to Frankfurt.

The Israel Defence Forces (IDF) on Thursday said it had begun a “large-scale” wave of strikes targeting infrastructure linked to Iran’s regime across the capital, Tehran, reported AFP.

In a statement, the Israeli military said the attacks were aimed at “infrastructure of the Iranian terror regime” in the heart of the city.

Basmati rice prices in India have fallen about 5–6% as the Iran–Israel conflict disrupts exports to the Middle East, a key market for the country’s premium rice, according to an Outlook Business report.

The region accounts for nearly half of India’s ₹50,000 crore basmati export trade. With shipments slowing and demand weakening amid the conflict, domestic prices have come under pressure. The disruption has also left consignments stranded at ports and in transit, creating uncertainty for exporters already dealing with payment delays and rising logistics costs.

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India’s volatility index (VIX), often referred to as the market’s fear gauge, declined 17% on March 5 after surging as much as 52% over the previous two sessions, reported The Economic Times.

The earlier spike marked the sharpest rise since the week of the first Covid lockdown nearly six years ago, signalling heightened investor anxiety in recent trading sessions.

Bitcoin climbed above $72,000 amid renewed institutional demand and strong inflows into US spot Bitcoin ETFs, The Economic Times reported. In the past 24 hours, Bitcoin rose 7.5% while Ethereum gained 9% to trade at $2,138. Major altcoins including BNB, XRP, Solana, Tron, Dogecoin and Cardano rose over 8%, pushing global crypto market capitalisation up 6.31% to $2.46 trillion.

Australia has deployed “military assets” in West Asia as part of contingency planning amid rising regional tensions, according to reports.

Prime Minister Anthony Albanese told parliament that the deployment had been carried out earlier this week. However, he did not disclose details about the type or scale of the assets sent to the region.

Local media reported explosions in several parts of Tehran hours after the Israeli military said that it had launched a “large-scale wave of strikes” across Iran’s capital. Blasts were reported in western Tehran and the nearby city of Karaj.

Two Russian oil cargoes that earlier signalled East Asia as their destination have been redirected to India, ship-tracking data showed, according to Bloomberg.

The tankers carry around 1.4mn barrels of Urals crude and are expected to discharge at Indian ports this week. The shift comes as the Middle East conflict intensifies and flows of Russian crude to India had earlier slowed under US pressure.

Indian government bond prices rose on the morning of March, supported by expectations of intervention by the Reserve Bank of India in the debt and foreign exchange markets, reported The Economic Times. Clearing house data showed a category of investors that includes insurers, pension funds, corporates and the RBI net bought a record ₹202bn ($2.19bn) worth of bonds on Wednesday. The benchmark 6.48% 2035 bond yield slipped to 6.6632% at 11:00 am IST from 6.6732% previously.

However, escalating Middle East tensions and rising oil prices kept overall risk appetite in check. Meanwhile, one-year, two-year and five-year OIS rates moved higher in early trade.

Israeli Air Force aircraft struck and dismantled a ballistic missile launcher near Qom that was armed and ready to fire at Israel, the Israeli Defence Forces (IDF) wrote in a post on X.

An Iranian air-defence system in Isfahan was also targeted. The IDF said the strikes were part of efforts to weaken Iran’s missile capabilities and that multiple measures were taken beforehand to reduce the risk of civilian harm.

Israel’s Ben Gurion Airport reopened after a five-day shutdown triggered by joint Israeli and U.S. strikes on Iran. The first repatriation flight from Athens landed on Thursday morning, bringing home Israelis who had been stranded overseas.

Benchmark Indian indices rebounded slightly on Thursday after three sessions of sell-off, as investor risk appetite improved. Though traders remain cautious, Wall Street ended in the green after comments by US President Donald Trump, which also lifted Asian markets.

The benchmark indices — Nifty 50 and BSE Sensex — were up 0.6% and 0.5% respectively in early trade. In the previous three sessions, both indices had fallen nearly 4% each, amid escalating geopolitical tensions in West Asia.

India Inc’s December quarter earnings season showed a sharp turnaround, with nearly 50 listed companies moving from losses in the September quarter to profits in the December quarter. The shift spans large- and mid-cap firms across aviation, banking, automobiles, logistics, chemicals, power and consumer sectors, signalling a broad-based recovery in corporate profitability, reported The Economic Times.

Missiles and drones coming from the direction of Iran fell on the territory of Nakhchivan International Airport in Azerbaijan’s exclave of Nakhchivan, a source close to the Azerbaijani government said, reported Reuters reported.

The airport is located about 10 km from the Iranian border. Further details on damage or casualties were not immediately available.

Shares of Indian metal companies such as NALCO and Hindalco Industries surged up to 7% on Thursday as rising metal prices boosted investor sentiment. Supply concerns linked to the ongoing Middle East conflict and other factors supported the rally in the sector. Investors tracked the uptick in global metal prices amid fears of disruptions, which lifted shares of several domestic metal producers, reported The Economic Times.

Cybersecurity watchdog NetBlocks said Iran’s near-total internet shutdown has entered its fifth day, with national connectivity hovering at around 1% of normal levels. The group warned of an “increasingly Orwellian environment”, saying users attempting to access the global internet face threats of legal consequences.

Multiple explosions were reported in the skies above Qatar’s capital, Doha, as the country’s defence systems intercepted missiles entering its airspace, reported Al Jazeera. Authorities have not yet provided details on the origin of the missiles or any damage caused, amid rising regional tensions stemming from the ongoing Middle East conflict.

Oil prices rose on March 5, extending a five-day rally as the escalating US-Israel war with Iran disrupted global supplies, Reuters reported. Brent crude was up $2.35 or 2.9%, at $83.75 per barrel, while US West Texas Intermediate crude gained $2.42, or 3.2%, to $77.08 by 0850 GMT.

Supply concerns were compounded by production cuts from some major producers and precautionary measures taken by others to ensure continuity. The ongoing geopolitical tensions in the Middle East continue to fuel market uncertainty, pushing energy prices higher.

According to reports, Bahrain-based Gulf Air has repatriated over 400 transit passengers affected by airspace closures due to the ongoing conflict in the Middle East. The airline, Bahrain’s flag carrier, provided stranded passengers with food and accommodation during the disruption.

Gulf Air stated that it intends to resume normal operations once conditions allow, ensuring passenger safety amid regional tensions. The move comes as airlines across the Gulf adjust schedules and manage stranded travelers in response to heightened security risks and restricted airspace in the region.

Qatar condemned Iran’s attempted missile attack on Turkey and the drone strike on Azerbaijan’s airport, reported AP. In a statement on March 5, Qatar’s Foreign Ministry described the actions as “a dangerous, aggressive escalation and a blatant violation of the nations’ sovereignty”.

The ministry warned that Iran’s attempts to widen the conflict pose serious risks to regional stability. Qatar called for restraint and adherence to international law, emphasising that such attacks exacerbate tensions in the region and threaten the security of neighboring countries amid the ongoing Middle East conflict.

According to reports, Israeli warplanes struck multiple security and military targets across Tehran amid the ongoing conflict with Iran. The attacks focused on sites associated with military infrastructure, including bases linked to Iran’s internal security apparatus and paramilitary forces, Iranian media and officials said.

While independent verification of specific facilities struck was limited, the military campaign reflects an intensification of air operations in and around the Iranian capital as part of wider hostilities involving Israel, the United States and Tehran.

Italy has heightened its national air-defence systems and will deploy naval support to Cyprus, along with anti-missile and anti-drone defence systems to Gulf countries affected by retaliatory strikes from Iran, reported AP.

Prime Minister Giorgia Meloni said the United States has not yet requested use of American bases in Italy for operations related to the war with Tehran, but any such request would be brought to Parliament. The U.S. currently has over 12,000 personnel stationed across Italian bases, including army, air force, naval facilities, and ports hosting the Sixth Fleet.

Pakistan has evacuated nearly 2,000 of its citizens, including 37 diplomats, from Iran via the Taftan border following US and Israeli strikes inside the country, officials said. Balochistan Chief Minister Sarfraz Bugti confirmed that evacuees returned through the main land route between the two countries.

Around 3,500 Pakistani pilgrims, students and businesspeople were in Iran when the attacks began. Some nationals have also been evacuated through Azerbaijan, according to Pakistan’s Ministry of Foreign Affairs, as the government coordinates safe passage amid escalating regional tensions.

Russia may divert about 9.5mn barrels of crude oil to India to India as the Strait of Hormuz crisis threatens global energy supply chains. India, which imports about 90% of its crude needs, is exploring alternatives amid escalating geopolitical tensions in West Asia.

The near-complete closure of the Strait of Hormuz, after the combined military strike by the US and Israel, has rattled traders across the world. The Strait, which accounts for about 20% of global oil trade, has compelled India to look for alternative sources, the report said.

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India's Foreign Secretary Vikram Misri, on behalf of the government, signed the condolence book at the Embassy of Iran in New Delhi on March 5. This marks India’s first official reaction after the airstrike that killed Iran’s Supreme Leader, Ayatollah Ali Khamenei.

The war in the Middle East has blocked access to major ports in the Gulf region, impacting food supplies for over 50mn people, a ship-spotting platform told Reuters on March 5.

Most major Gulf ports, including Dubai's Jebel Ali and primary ports in Kuwait, Bahrain, Qatar and the Saudi Gulf coast, are located where most incoming traffic would have to pass through the Hormuz waterway.

The current situation is impacting agricultural supplies across the Gulf region which is 80%-90% dependent on food imports. Price surges and scarcity of some goods are expected.

Iran launched its large Khorramshahr-4 missiles targeting Israel on Thursday, the country’s paramilitary Revolutionary Guard said, reported AP. The missiles carry a 1-ton warhead and can be equipped with multiple warheads.

Israel has previously stated that Iran used cluster munitions in its attacks. The Revolutionary Guard also claimed responsibility for strikes in Bahrain, Kuwait, and the United Arab Emirates, signalling a widening of the conflict across the Gulf region. These developments come amid escalating hostilities involving Iran, Israel and the United States.

Iran accused Israel and the United States on March 5 of deliberately targeting civilian areas in its war against the Islamic republic, which began six days ago.

Foreign Ministry spokesman Esmaeil Baqaei wrote in a post on X, “our people are being brutally slaughtered as the aggressors deliberately target civilian areas and any location they believe will inflict the maximum possible suffering and loss of life.”

The United Arab Emirates Ministry of Defence said that one missile and six drones fell inside the country’s territory, part of a barrage of Iranian launches during the ongoing regional conflict, reported Reuters.

Emirati air‑defence systems have been actively engaging incoming threats as tensions persist across the Gulf and wider Middle East.

The United Arab Emirates Ministry of Defence said that one ballistic missile and six drones fell inside the country's territory as its air-defence systems responded to continued attacks, reported Reuters.

The Ministry of Defence affirmed that it is on high alert and readiness to deal with any threats and to firmly counter everything that targets undermining the state's security, ensuring the preservation of its sovereignty, security, and stability, and protecting its interests and national capabilities.

India is in a “very comfortable position” regarding energy security, with adequate stocks and daily replenishment of supplies, government sources told ANI.

There is currently no shortage of LPG, LNG or crude oil, and India is in touch with multiple suppliers to ensure steady supplies. Australia and Canada have offered gas, while new contracts have been signed with the UAE and the US India imports about 195 MMSCMD of gas, including 60 MMSCMD from Qatar and is exploring alternative markets. Talks with oil producers, traders, and global energy bodies like the IEA and OPEC continue to secure steady energy supplies.

France has authorised the temporary presence of US aircraft at certain French military bases, the French army general staff said, reported Reuters.

The approval is for a limited period and applies only to specific bases, though the army did not provide further details regarding the deployment or the number of aircraft involved.