The Israel-Iran conflict escalated into a second day with reports of Iranian Supreme Leader Ayatollah Ali Khamenei's death confirmed by state media and U.S. President Trump's declaration. Markets are now pricing in a prolonged conflict rather than a short-term shock, with renewed strikes, Strait of Hormuz closure threats, and regional spillover effects. The closure of the Strait of Hormuz, a critical oil transit chokepoint, has heightened energy market volatility and pushed oil prices higher. Geopolitical risks are driving safe-haven assets like gold and the U.S. dollar, while equity markets face downward pressure due to uncertainty. The situation remains fluid as retaliatory actions spread across the Gulf, impacting global trade and investor sentiment.