DUBAI:  Oil prices surged and markets slid on Monday after hard-line Ayatollah Mojtaba Khamenei was chosen to succeed his late father as Iran’s supreme leader, signalling that Iran was digging in 10 days into the war launched by the United States and Israel.

Oil prices later fell, and the US stock market closed higher, amid hope that the war with Iran may not last that long as world leaders discussed options.

The war has choked off major supplies of oil and gas to world markets, led foreigners to flee from business hubs and prompted millions to seek shelter as bombs hit sites including military bases, government buildings, oil and water installations, hotels and at least one school.