Stock markets across the Gulf fell on Sunday morning after Israel and Iran launched fresh attacks on each other overnight, sparking fears of a widening conflict in the Middle East.

Israel's strikes on Iran's nuclear and military sites have pushed the long-simmering rivalry into open warfare, with Tehran retaliating and hitting key Israeli cities. With the US trying to balance diplomacy and deterrence,

Israel’s leader and President Trump appeared to bet they can persevere, but other world leaders warned of unintended outcomes in a volatile region.