Iran and Israel traded missile strikes on Monday, defying President Donald Trump's push for a ceasefire and roiling global markets. Tehran launched fresh ballistic missiles hours after Sunday's barrage, while Israel hit military targets and Iran's Karun Petrochemical Company in Mahshahr. Brent crude surged 4% to above $97 a barrel as traders priced in prolonged disruption to Middle East energy flows.

The exchange marks the most serious breach of an April 8 ceasefire that halted a war sparked by US and Israeli bombing in late February. Tehran's barrage is a rare defense of Hezbollah after Israeli strikes on Beirut killed two people and wounded eleven. Trump urged restraint and pitched a 60-day truce to open broader negotiations, but the diplomatic push has gained no traction.

Investors are retreating from risk assets and piling into havens. The U.S. dollar strengthened against all Group-of-10 currencies as the conflict threatens to reignite global inflation. Trump is floating a plan to redirect frozen Iranian assets toward Gulf allies rebuilding sites hit by Tehran. Iranian officials rejected the proposal outright, insisting the money is not Washington's war spoils and demanding compensation for their own damages.