Daily Buzz: 2 March 2026

War Breaks Out in Middle East, Iran's Leader Killed

The Middle East erupted in warfare this weekend as the US and Israel launched major air attacks on Iran, and Tehran retaliated with missile and drone strikes on Israel and US military facilities in the Gulf states. Iran's supreme leader Ayatollah Ali Khamenei, 86, was killed by a missile attack on his Tehran compound, state television announced. Former Iranian president Mahmoud Ahmadinejad and other top political and military officials were also killed. US President Donald Trump called Khamenei, who ruled the country for 36 years, "one of the most evil people in history." China condemned his killing as "a grave violation of Iran's sovereignty and security." Iran's Islamic Revolutionary Guard Corps vowed to avenge his death with "the most devastating offensive operation." Trump said US bombing may continue for weeks and called on the Iranian people to rise up and overthrow the government.

Iran closed the Hormuz Strait, through which 20 percent of the world's oil passes every day.

One oil tanker trying to pass the strait was reportedly hit. Iran claimed it struck the aircraft carrier USS Abraham Lincoln off the coast of Oman with four missiles, while US said it wasn't "even close." Trump said the US military had destroyed nine Iranian warships so far and was "going after the rest."

Iranian strikes damaged Dubai International Airport, one of the world's biggest aviation hubs, and drone debris fell on the city's iconic Burj Al Arab luxury hotel, the second-highest in the world. Other Gulf airports were also hit. Global airlines suspended flights to the region, stranding thousands of travelers. A fire broke out at the swanky Palm tourist resort in Dubai after it was hit by Iranian missiles, which also struck the base of the US Fifth Fleet in Bahrain, and Saudi Arabia's Prince Sultan air base.

Casualties were reported across the region. Three US service personnel based in Kuwait were killed and five seriously wounded. According to Aljazeera preliminary figures, Iran has suffered 201 deaths and 747 injuries. Most of the deaths came after a missile struck a girls' elementary school in the south of the country. At least nine people have been killed in Israel, with 121 injured. Elsewhere in the Gulf, 6 people were killed and 120 wounded.

Trump said the attack on Iran was necessary after talks with Tehran failed and Iran's nuclear ambitions and missile buildup threatened humanity. UN Secretary-General Antonio Guterres told an emergency meeting of the Security Council that he deeply regretted an opportunity for diplomacy had been "squandered." A Chinese Foreign Ministry spokesperson said Beijing is "highly concerned" about the attacks on Iran by the US and Israel, and called for an immediate halt to military operations and a resumption of dialogue. A joint statement by French President Emmanuel Macron, German Chancellor Friedrich Merz and UK Prime Minister Sir Keir Starmer urged Iran to "seek a negotiated solution." Russia called the US-Israeli strikes a "reckless move."

About 27 percent of Americans in a Reuters/Ipsos poll conducted on Sunday said they approve of the US attacks on Iran, 43 percent disapproved and 29 percent were uncertain.

Afghan-Pakistan Cross-Border Fighting Continues

Afghanistan said it fired on Pakistani jets flying over Kabul after blasts and gunfire rocked the capital on Sunday, as the heaviest cross-border fighting in years continues, Reuters reported. Qatar and Saudi Arabia had called for restraint and offered to help mediate a ceasefire, but their attention may have been diverted by the US-Israeli war with Iran, which borders Afghanistan's west. Pakistan accuses Kabul of harboring Taliban militants that carry out attacks within its borders – a claim Afghanistan denies.

Ukraine Says Russia Accepts US Post-War Security Guaranties

Ukraine President Volodymyr Zelenskys said Russia has agreed to accept US proposals for Ukraine post-war security guarantees. Talks on ending the war have lumbered along without a breakthrough as disputed territorial issues remain in stalemate. However, security guarantees against future Russian attacks, which the Kremlin earlier rejected, are considered a central part of Ukraine's demands. Separately, Kiev and Moscow agreed to a temporary, local truce to repair a 330-kilovolt supply line to Ukraine's Zaporizhzhia nuclear power plant, the largest in Europe, which is now controlled by the Russians. Both sides have accused the other of staging attacks near the plant.

Top Business

BYD Suffers Worst Sale Plunge in Six Years

BYD, a leading Chinese electric carmaker, suffered its biggest monthly drop in global sales in six years last month, with February figures down 41 percent from a year earlier, Reuters reported. Although the nine-day Chinese Lunar New Year holiday mid-month may have dented sales, two-month figures – which cover the holiday periods of this year and last – were down 35 percent. BYD's overseas sales in February remained relatively strong at 100,600 vehicles, but domestic sales plunged two-thirds to 89,590, worsening from a 53 decline in January when rival Geely unseated BYD as the top carmaker in China. Auto industry analysts have been predicting a slowdown in the 2026 domestic market, exacerbated by the government's lowering of a tax exemption on new energy vehicles.

China Tightens Controls Over Fast Food-Delivery Services

China has tightened controls over the burgeoning fast food-delivery industry, banning use of "ghost kitchens" that supply meals for online services but aren't qualified for food preparation, allowing some vendors to evade regulatory scrutiny. The new rules issued by the State Administration for Market Regulation, effective June 1, are aimed at curbing misleading practices. They also require that online takeaway restaurants use the same trading name as their physical outlets, display their business licenses and addresses, and disclose more operational details. The industry is currently dominated by Meituan, Alibaba and JD.com, but smaller operations have sprung up amid the popularity of meal-delivery services. The fast food-delivery industry is forecast to reach a value of 1.96 trillion yuan (US$280 billion) by next year.

Technology Meets Politics in Dispute Over AI Ethics

OpenAI, creator of ChatGPT, said it agreed to terms with the US Department of War on use of its artificial intelligence models, shortly after President Donald Trump said the government is dropping Anthropic as a contractor over a dispute related to use of its AI technology for public surveillance and fully autonomous weaponry. OpenAI Chief Executive Sam Altman said his company shared the same "red lines" as Anthropic and the defense department has agreed to those restrictions. Anthropic said in a statement that it was "deeply saddened" by the Pentagon's decision to label the company a "supply chain risk" and would challenge that designation in court.

Economy & Markets

Oil, Gold to Spike on Iran Conflict, Stock Futures Point Lower

Oil and gold prices spiked when commodity markets reopened in New York. Benchmark Brent crude surged as much as 13 percent to US$82 a barrel. OPEC+ agreed on Sunday to raise oil output by a modest 206,000 barrels a day. Gold rose 1.7 percent to a record US$5,3400. Futures for the broad S&P 500 index in New York were down 1 percent, and futures pointed to lower opens on Tokyo and Hong Kong exchanges as Asian markets are first to reopen after the weekend.

China Slaps Anti-Dumping Duty on Canadian Canola Seed

China's Ministry of Commerce announced on Saturday that Canadian exporters of canola seed products will face an anti-dumping duty of 5.9 percent for five years, easing pricing pressure on domestic producers. The decision was announced a day after China said it is suspending additional tariffs on certain Canadian seafood imports, including lobsters and crabs.

JPMorgan Exits Forward Bets on Yuan's Rise

US investment bank JPMorgan took profits from the recent runup in the value of the Chinese yuan against the US dollar by closing out its long offshore yuan positions, Reuters reported. The move came after the People's Bank of China eliminated its 20 percent risk reserve requirement on purchase of currency forwards, effectively improving the attractiveness of buying dollars and taming the yuan's recent appreciation. A JPMorgan analyst's note said the yuan's rise had "probably gone a bit further" than the Chinese central bank's comfort zone and cited concerns about whether "bullish momentum in the yuan is running out of steam, at least over the short run." China's currency is traded in two separate channels. The onshore currency is restricted; the offshore currency is a freely traded version allowed in centers such as Hong Kong.

South Korean Exports Rise on Semiconductor Surge

South Korea said on Sunday that exports in February rose 29 percent from a year earlier on a 161 percent surge in chip shipments. The gain was the ninth straight month of increases and beat market expectations. Imports gained 7.5 percent, slower than estimates.

Corporate

Xiaomi Begins Sales of High-End Smartphones

China's Xiaomi, the world's third-largest smartphone maker, launched its 17 and 17 Ultra flagship models on Saturday even as a global surge in memory chip prices threatens to curtail sales. The Xiaomi 17's starting price is US$1,179, while the Xiaomi 17 Ultra starts at US$1,771. The new models are aimed at challenging Samsung and Apple in the top end of the market, CNBC reported.

Prices of memory chips used in phones and other consumer electronics have surged at least 80 percent this year as demand from AI data centers sucks up supply.

Separately, Xiaomi, also a major electric carmaker, said vehicles sales in February fell by almost half from January to 20,000 vehicles. The drop may reflect the nine-day Lunar New Year holiday in the middle of the month. The carmaker also announced the formation of an advisory committee on safety as it tries to quell public concerns after a series of accidents involving its vehicles.

Limin Signs Farm-Chemicals Contract With Bayer Crop

Limin Group, a Chinese supplier of agricultural chemicals, said it received a 1.6 billion yuan (US$230 million) order from Bayer Crop Science. The products will support the German company's businesses in Latin America over the next three years, with the contract providing for a possible three-year extension. Shenzhen-listed Limin didn't specify what chemicals it will supply Bayer from its line of fungicides, insecticides and herbicides.