Energy markets have been particularly sensitive to developments in the region because of the strategic importance of the Strait of Hormuz, a key maritime route for global oil shipments. Any prolonged disruption in the area could affect international energy supplies and economic stability.
Inside Iran, large rallies were reported in support of the new leader, with crowds gathering in Tehran and other cities. Demonstrators carried images of both Ali Khamenei and Mojtaba Khamenei while expressing support for the country’s leadership during the ongoing crisis.
Despite these displays of support, analysts say the country faces significant internal and external challenges. Iran’s economy has been under pressure from sanctions and wartime disruption, while the continuing confrontation with the United States and Israel adds further uncertainty.