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Oil shot to its highest price since 2023 as the Iran war kept escalating, while a weak update on the U.S. job market highlighted the economy’s precarious position. It all raised the risk of a worst-case scenario for financial markets, one where the economy stagnates and inflation remains high, and stocks are falling Friday toward the finish of Wall Street's worst week since November. The S&P 500 dropped 1%, led by companies with big fuel bills. The Dow Jones Industrial Average briefly fell 945 points before paring its loss to 425 points. The Nasdaq composite sank 1.1%.

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U.S. President Donald Trump appeared to rule out talks with Iran absent its “unconditional surrender.” Israeli warplanes pounded Beirut and Tehran on Friday as Iran launched another wave of retaliatory strikes against Israel and Gulf countries on the seventh day of the war. The strikes in Lebanon were the heaviest since a 2024 ceasefire ended the last war between Israel and the Iran-backed Hezbollah, who fired rockets at Israel in the opening days of the latest conflict. More than 95,000 people have fled Beirut’s suburbs and southern Lebanon after sweeping Israeli evacuation warnings. The U.S. and Israel have battered Iran with strikes, targeting their military capabilities, leadership and nuclear program. The stated goals and timelines for the war have repeatedly shifted.

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Satellite images and videos of an Iranian girls school damaged by large explosions at the start of a U.S.-Israeli airstrike campaign targeting the Islamic Republic indicate a targeted attack from the air hit the building. That's according to military experts who spoke to The Associated Press. Iran says the blast killed at least 165 people, most of them children. The location of the strike, its affiliation to a coastal defense unit of Iran’s paramilitary Revolutionary Guard and the tight pattern of the damage suggest a targeted airstrike on the site. Several factors point to a U.S. strike, given the proximity of American forces to the school and focus on missile sites and naval forces in the war.

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Russia has provided Iran with information that could help Tehran strike American warships, aircraft and other assets in the region. That's according to two officials familiar with U.S. intelligence on the matter. The officials, who were not authorized to comment publicly on the sensitive matter and spoke on the condition of anonymity, cautioned that the U.S. intelligence has not uncovered that Russia is directing Iran what to do with the information. Still, it's the first indication that Moscow has sought to get involved in the war in the week-old war that the U.S. and Israel launched on Iran.

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Stranded Americans across the Middle East say they’ve been left to navigate flight cancellations and confusing government guidance on their own. They expressed frustration with the State Department's directions to “depart now” on commercial flights even though much of the airspace across the Gulf remains closed or heavily restricted. Some have reported relying instead on WhatsApp group chats and friends. Since the war began on Feb. 28, about 20,000 Americans have returned safely to the U.S. The State Department said Thursday that nearly all made it out on their own. The White House pushed back on criticism that the U.S. response has been too slow. The first U.S.-organized charter flight departed the region Wednesday.

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Officials with one of the armed Kurdish Iranian dissident groups based in northern Iraq say they are not planning an imminent cross-border attack on Iran but would join a ground invasion if the U.S. were to launch one. Khalil Nadiri, an official with the Kurdistan Freedom Party PAK, made the comments in an interview with The Associated Press on Thursday. The comments appeared to be aimed at reassuring Iraqi Kurdish officials, who have said they do not want attacks to be launched against Iran from their territory. They fear that they will be further dragged into the war in the Middle East sparked by the U.S. and Israel’s strikes on Iran.

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Local officials say Islamic militants attacked a town in northeastern Nigeria, abducting more than 300 people, including women and children. The attack on Friday happened in the town of Ngoshe in Borno state. That's according to Bulama Sawa, an official from the Gwoza area. He told The Associated Press the attack was likely in retaliation for an operation by the military that killed three commanders of the militant Boko Haram group.

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Hungary says it has detained seven Ukrainians working for a state bank and seized armored vehicles full of cash, setting off a sharp dispute with Kyiv. On Friday, Hungarian customs officials say they opened a money laundering case. Ukraine’s foreign minister called the detentions “state terrorism” and accused Hungary of taking the bank employees hostage. Ukraine’s Oschadbank says the shipment included millions in dollars and euros, plus gold. The bank says GPS shows the vehicles in central Budapest, but staff locations stay unclear. The clash adds fuel to a wider dispute over blocked Russian oil flows through Ukraine.

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Sri Lanka has taken custody of an Iranian ship after it asked for help near its coast. The Sri Lankan navy on Friday brought 204 Iranian sailors from the IRIS Bushehr to a base near Colombo, where officials ran border checks and medical tests. They reported no health issues. Sri Lanka left about 15 sailors aboard to help its naval staff. The crew reported an engine fault. Sri Lanka says it acted under international law and is staying neutral. The move followed Wednesday’s sinking of another Iranian warship by a U.S. submarine. Australia confirmed three Australians were on that submarine.

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The legal team for Hong Kong pro-democracy ex-publisher Jimmy Lai says he will not appeal the national security conviction for which he was sentenced to 20 years in prison. Lai was found guilty in December of conspiracy to collude with foreign forces and conspiring with others to publish seditious articles. His Hong Kong legal team told The Associated Press about the decision Friday but would not comment on the reason for not appealing. Lai was one of the first prominent figures to be arrested under the security law in 2020. After the sentencing, Lai's children said a possible visit by U.S. President Donald Trump to Beijing later this month could be crucial in securing the release of their father.

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Officials say Iran’s retaliatory attacks in the Middle East over strikes from Israel and the U.S. have left some of America’s partners in the Gulf frustrated over a lack of notice or adequate defense. The mostly private frustration comes as Pentagon officials conceded this week they’re struggling to stop waves of drones launched by Iran, leaving some U.S. targets in the Gulf region vulnerable. The Gulf countries have emerged as targets for Iran, well within the range of Iran’s short-range missiles and filled with targets, including American troops, businesses, tourist locations and energy facilities. The officials spoke on the condition of anonymity because they were discussing a confidential diplomatic matter.

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Indonesia will ban social media for children under 16, the communication and digital affairs minister says. Meutya Hafid in a statement to media Friday said that she has signed a government regulation that will mean children under the age of 16 can no longer have accounts on high-risk digital platforms, including YouTube, TikTok, Facebook, Instagram, Threads, X, Bigo Live and Roblox. The implementation will start gradually from March 28. Hafid said the government was helping parents fight back against online dangers.

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London police say four men have been arrested on suspicion of aiding Iran by spying on the Jewish community. In a statement Friday, the Metropolitan Police said the suspects, one Iranian and three dual British-Iranian nationals, were taken into custody on suspicion of assisting a foreign intelligence service. The force said the men, aged 22, 40, 52 and 55, were arrested at addresses in and around north London shortly after 1 a.m. They are suspected on spying on locations and individuals. Six other men were arrested on suspicion of assisting an offender.

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Azerbaijan has accused Iran of a drone attack on its territory, as the war in the Middle East reached into another country. Azerbaijan officials said Thursday that Iranian drones attacked its exclave of Nakhchivan, injuring four civilians and damaging an airport building. President Ilham Aliyev accused Iran of carrying out "a groundless act of terror and aggression," and said his military has been told to prepare retaliatory measures. Iran's armed forces denied it had launched a drone toward Azerbaijan's territory. The incident highlighted Azerbaijan's complicated relationship with neighboring Iran because Baku also has developed military and economic ties with Israel.

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Azerbaijan on Thursday accused Iran of a drone attack on its territory, and it vowed to retaliate in a sign that the war in the Middle East was spreading. Meanwhile, Iran has grown increasingly concerned about the U.S. and Israel potentially leveraging the Islamic Republic’s various minority…

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Mojtaba Khamenei, a son of Iran’s late Supreme Leader Ayatollah Ali Khamenei, long has been considered a contender to the post of the country’s next paramount ruler even before his father's death. He has never been elected nor appointed to a government position. Khamenei has been a secretive figure within the Islamic Republic. He has not been seen publicly since Saturday. That is when an Israeli airstrike targeting the supreme leader’s offices killed his 86-year-old father and sparked the war raging across the Middle East. That attack also killed the younger Khamenei’s wife, Zahra Haddad Adel, who came from a family long associated with the country’s theocracy.

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Ukrainian President Volodymyr Zelenskyy says the United States and its allies in the Middle East are seeking Ukraine's expertise in countering Iran's Shahed drones. Zelenskyy says various countries, including the United States, have approached Ukraine for help in defending against the Iranian drones. He said he has spoken in recent days with the leaders of the United Arab Emirates, Qatar, Bahrain, Jordan and Kuwait about possible cooperation. Russia has fired tens of thousands of Shaheds at Ukraine since it invaded its neighbor just over four years ago. Iran has responded with the same type of drones to joint U.S.-Israeli strikes on Iranian targets.

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U.S. President Donald Trump says he should be involved in choosing Iran's next supreme leader. The U.S. and Israel are hammering the country for a sixth day. Iran has kept up its retaliatory attacks on Israel, American bases and countries around the region. The war has escalated each day, affecting an additional 14 countries across the Middle East and beyond. On Thursday, Azerbaijan accused Iran of attacking it with drones — though Tehran denied that. Israel meanwhile issued a mass evacuation warning for all of Beirut's southern suburbs as the fighting escalated with Lebanon's Iran-allied Hezbollah militants. U.N. peacekeepers reported ground combat in southern Lebanon as more Israeli troops crossed the border.

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The House has narrowly rejected a resolution that would curb President Donald Trump’s powers in the Iran war. Thursday's roll call offers a snapshot of the support and opposition in Congress for the widening conflict that's reordering U.S. priorities at home and abroad. It’s the second vote in as many days. The Senate defeated a similar measure along party lines Wednesday. Lawmakers are confronting the sudden reality of representing the nation in wartime and all that entails — with lives lost, dollars spent and alliances tested by a president’s decision to attack Iran. Republicans largely back the war, while Democrats oppose. But there are splinters in the parties.

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U.S. President Donald Trump says he should be involved in choosing Iran’s next supreme leader. The U.S. and Israel have been hammering the country for a sixth day Thursday. Iran has kept up its retaliatory attacks on Israel, American bases and countries around the region. The war has escalated each day, affecting an additional 14 countries across the Middle East and beyond. U.S. Defense Secretary Pete Hegseth warned that American firepower over Tehran was “about to surge dramatically.” Azerbaijan accused Iran of attacking it with drones — though Tehran denied that. Israel struck Beirut’s southern suburbs after issuing a mass evacuation warning as fighting intensified with Lebanon’s Iran-allied Hezbollah militants.

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Iraqi Kurdish officials have told The Associated Press that thousands of battle-hardened Kurds in northern Iraq are preparing for a potential cross-border military operation in Iran with U.S. backing. The three officials spoke on condition of anonymity because they were not authorized to comment publicly. The involvement of the Kurds could pressure Iranian defenses and pull Iraq deeper into war. Here's a look at the Kurds, who are among the largest stateless ethnic groups in the world, with roughly 30 million living as minorities in Turkey, Iraq, Iran and Syria.

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The State Department says the United States and Venezuela have agreed to reestablish diplomatic relations in a major shift in a historically adversarial relationship. The move comes after rounds of Trump administration officials have visited the South American nation after a U.S. military operation deposed of former President Nicolás Maduro in January. Since then, the Trump administration has been stepping up pressure on Maduro loyalists who now run the oil rich nation. Relations between the two countries were cut off following another geopolitical debacle in 2019, during the first Trump administration.

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Some two dozen states are challenging President Donald Trump's new global tariffs in court. On Thursday, the states filed a lawsuit over import taxes he imposed after a stinging loss at the Supreme Court. Democratic attorneys general leading the suit argue that Trump is overstepping his power with planned 15% tariffs on much of the world. Trump has said the tariffs are essential to address trade deficits. He imposed duties under Section 122 of the Trade Act of 1974 after the Supreme Court struck down tariffs he imposed last year under an emergency powers law. The new suit argues that law was intended to be used only in specific, limited circumstances.

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Watch live as Defense Secretary Pete Hegseth and U.S. Navy Adm. Brad Cooper hold a press conference. The U.S. Embassy in Kuwait shut down after retaliatory Iranian strikes on the country, becoming the second American diplomatic mission to fully halt work as the war in Iran escalates. Kuwait …

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U.S. stocks sank after the price of oil spiked to its highest level since 2024. The S&P 500 fell 0.6% Thursday. The Dow Jones Industrial Average briefly dropped more than 1,100 points before finishing with a loss of 784. The Nasdaq composite slipped 0.3%. The losses came as financial markets around the world keep following the cue of the oil market. Oil prices gave back some of their big gains late in the day, which helped stocks in the U.S. moderate their losses at the end of trading. But worries nevertheless remain high about how long the war with Iran will disrupt oil production.