Ayatollah Ali Khamenei, Iran’s supreme leader, was killed Saturday in a U.S.-Israeli military assault, President Donald Trump announced, a move that triggered celebrations in parts of Tehran and prompted warnings of retaliation from the Iranian government.
The announcement, made via social media, came as Iranian state television confirmed Khamenei’s death, ending a nearly four-decade rule that began in 1989 following the death of Ruhollah Khomeini, the Islamic Republic’s founder. Trump characterized the operation, dubbed “Operation Epic Fury,” as “Justice for the people of Iran” and for those harmed by Khamenei’s leadership.
The strikes targeted air defense capabilities, missile and drone launch sites, and military airfields within Iran, according to reports. Witnesses in Tehran reported hearing loud cheers and seeing residents celebrating in the streets after news of Khamenei’s death spread.
Khamenei, 86, had vowed continued resistance during the 2025 Iran-Israel conflict, stating, “War will be met with war, bombing with bombing, and strike with strike. Iran will not submit to any demands or dictates,” according to Iran’s semi-official state news agency, Tasnim. Prior to becoming supreme leader, Khamenei served as Iran’s president from 1981 to 1989.
The death of Khamenei is expected to create a significant leadership vacuum in Iran, a nation controlled by a theocratic regime since the 1979 Islamic Revolution. Global leaders are now grappling with the potential for wider regional instability. Trump urged Iranian civilians to “seize over your government,” in a video message following the strikes.
Financial markets are bracing for volatility. Analysts predict a “gap-up opening” for bullion markets as investors seek safe-haven assets like gold and silver. Jateen Trivedi, VP Research Analyst at LKP Securities, stated that the conflict is “fueling uncertainty and diminishing hopes of a quick diplomatic resolution.” Gold rose to near a one-month high on Friday, trading at $5,230.56 per ounce, marking a 7.6% gain for February. Silver too climbed, rising 4.8% to $92.60 per ounce, with a 9.7% monthly gain.
Nachiketa Sawrikar, Fund Manager at Artha Bharat Global Multiplier Fund, anticipates that higher crude oil prices, a likely consequence of the conflict, will widen India’s current account deficit, stoke domestic inflation, and potentially lead to foreign investment outflows.
Indian capital markets are expected to open lower, with potential for significant price fluctuations, according to Ashish Anand, Partner at Fortuna Asset Managers. He advised investors to avoid panic selling and maintain long-term investment strategies, including Systematic Investment Plans (SIPs), diversified across asset classes.
