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Trump rejects settling Iran war, raises prospect of killing all its potential leaders

Published by Global Banking & Finance Review

Posted on March 8, 2026

5 min read

· Last updated: April 1, 2026

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Trump rejects settling Iran war, raises prospect of killing all its potential leaders
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By Maya Gebeily, Alexander Cornwell, Nandita Bose and Parisa Hafezi BEIRUT/MIAMI/TEL AVIV/DUBAI, March 8 (Reuters) - U.S. President Donald Trump said he is not interested in negotiating with Iran and

Iran names Khamenei's hardline son Mojtaba as new supreme leader, oil surges

Iran's Leadership Transition and Global Reactions

By Parisa Hafezi and Maayan Lubell

DUBAI/JERUSALEM, March 9 (Reuters) - Iran on Monday named Mojtaba Khamenei to succeed his father Ali Khamenei as supreme leader, signaling that hardliners remain firmly in charge, as the week-old U.S.-Israeli war with Iran pushed oil above $100 a barrel.

Mojtaba Khamenei's Appointment

Mojtaba, a cleric with influence inside Iran's security forces and vast business networks under his father, had been viewed as a frontrunner in the lead-up to Sunday's vote by the Assembly of Experts, a body of 88 clerics tasked with choosing Ali Khamenei's successor.

"By a decisive vote, the Assembly of Experts, appointed Ayatollah Seyyed Mojtaba Hosseini Khamenei as the third Leader of the sacred system of the Islamic Republic of Iran," the Assembly said in a statement issued just after midnight Tehran time.

The position gives Mojtaba the final say in all matters of state in the Islamic Republic.

International Responses

Mojtaba’s appointment will likely draw the ire of U.S. President Donald Trump, who said on Sunday that Washington should have a say in the selection. "If he doesn't get approval from us, he's not going to last long," he told ABC News.

Israel, ahead of the announcement, threatened to target whoever was chosen.

In an interview with the Times of Israel after the new supreme leader was named, Trump declined to respond, saying only "We'll see what happens," according to the newspaper. Trump also said in the interview that ending the war would be a "mutual" decision with Israeli Prime Minister Benjamin Netanyahu.

Background on the Succession

Mojtaba's father, Supreme Leader Ali Khamenei, was killed in one of the first strikes launched against Iran more than a week ago.

Washington on Sunday ordered the departure of non-emergency employees at its embassy in Saudi Arabia, the latest drawdown of U.S. diplomats as Iran has struck U.S. facilities in the region.

The U.S. military reported a seventh American has died from wounds sustained during Iran's initial counter-attack a week ago, a day after Trump presided over the return to the United States of the remains of the six others killed.

The U.S.-Israeli attacks have killed at least 1,332 Iranian civilians and wounded thousands, according to Iran's U.N. ambassador.

Oil Market Impact

Oil Prices Surge

OIL OVER $100 A BARREL

The expanding war has severely impacted the oil trade and surging prices sparked a fall in share futures in Asia on Monday, amid fears of rising living costs. The dollar rose sharply against the euro and the yen.

U.S. crude futures rose more than 20% in early trade on Monday, hitting their highest since July 2022, amid fears of tighter supply and prolonged disruptions to oil shipments through the Strait of Hormuz. Brent jumped 17% to $108.73 a barrel, having already soared 28% last week.

On Wall Street, S&P 500 futures ESc1 shed 1.6%, while Nasdaq futures NQc1 dived 1.7%.

Political Statements on Oil

Trump, in a social media post, said oil prices "will drop rapidly when the destruction of the Iran nuclear threat is over," and said the price hike was "a very small price to pay for U.S.A., and World, Safety and Peace."

Defiance from Tehran

Iran's Military and Political Response

DEFIANCE FROM TEHRAN

Iranian state media said the leadership of Iran's armed forces had pledged allegiance to Mojtaba Khamenei and the Islamic Revolutionary Guard Corps said in a statement they are ready to follow the new supreme leader.

The Assembly of Experts met on Sunday to elect a new supreme leader despite threats that the body would be targeted, Iran's security chief, Ali Larijani, said on state TV after the announcement.

Mojtaba Khamenei could lead the country under the current sensitive conditions, Larijani said, calling for unity around the new leader.

Iran has launched strikes across the region in retaliation against U.S. and Israeli attacks. The U.S. State Department said on Sunday it had ordered non-emergency U.S. government employees and their family members to leave Saudi Arabia due to safety risks, days after the embassy in the Saudi capital was damaged in a drone attack blamed on Iran.

Early on Sunday, the Saudi Defence Ministry said that it had shot down a drone that attempted to target the Diplomatic Quarter, a calm tree-lined neighbourhood on the city's western edge that hosts most foreign missions including the U.S. embassy.

The U.S. has already raised its warning level for Saudi Arabia and allowed some personnel to leave the country, and has ordered the departure of staff at embassies in Qatar, Kuwait, Jordan and Bahrain since the outbreak of the war.

Israeli Actions

Israel continued to target senior Iranian figures, including Abolqasem Babaian, the recently appointed head of the military office of the supreme leader, saying he was killed in a Saturday strike.

Escalation of Conflict

Dangerous New Phase

'DANGEROUS NEW PHASE'

As fighting escalated on Sunday, day nine of the U.S.-Israeli campaign against Iran, thick black smoke hung over Tehran, residents said, after strikes on oil storage facilities had lit up the night sky with plumes of orange flame.

Iran's foreign ministry spokesperson Esmaeil Baghaei said the large-scale attack marked a "dangerous new phase" of the conflict and amounted to a war crime.

Statements from Both Sides

Israeli military spokesman Lieutenant Colonel Nadav Shoshani told reporters the depots were used to fuel Iran's war effort, including producing or storing propellant for ballistic missiles. "They are a legal military target," he said.

Netanyahu said his government would press on with the assault and strike Iran's rulers "without mercy".

"We have an organised plan with many surprises to destabilise the regime and enable change," he said in a video statement.

(Reporting by Reuters bureaux; Writing by Crispian Balmer, Charlie Devereux, Steve Holland and Simon Lewis; Editing by William Mallard, Alex Richardson, Ros Russell, Sergio Non, Diane Craft and Michael Perry)

Key Takeaways

  • Trump demands unconditional Iranian surrender and suggested war ends only when Tehran no longer has military or leadership capability (“at some point… nobody left maybe to say ‘We surrender’”) (axios.com)
  • Iran’s President Pezeshkian issued a rare apology to Gulf neighbors for attacks, stating Iran will halt strikes unless its territory is used against them—but hardliners and the military pushed back (apnews.com)
  • The conflicting messages underscore deep internal divisions within Iran’s interim leadership amid escalating regional conflict (apnews.com)

References

Frequently Asked Questions

What did Trump say about negotiating with Iran?
Trump said he is not interested in negotiating with Iran and hinted the war would only end once Tehran is left without a functioning military or leadership.
How did Iran's president respond to the attacks?
Iran's president apologized to neighboring countries for attacks on U.S. facilities in their territory but rejected Trump's demand for unconditional surrender.
Did Israel or other Gulf states react to the conflict?
Israel warned any IRGC who surrendered would be unharmed; Saudi Arabia warned Iran that further attacks could prompt a response.
Were there any attacks outside Iran?
A U.S. embassy in Oslo was hit by an explosion, and Saudi Arabia foiled a drone attack on its diplomatic quarter in Riyadh.
Is there division within Iran's leadership?
Iranian officials denied any divisions over the handling of the war, despite political stir caused by the president's comments.

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