Iran hardline cleric Arafi joins wartime leadership

What happened: The U.S. has arrested and deported the niece of Qasem Soleimani, the late Iranian military commander, accusing her of spreading pro-Tehran propaganda. Meanwhile, Iran's Supreme Leader Mojtaba Khamenei remains in hiding with limited communication, according to a CBS News report citing U.S. officials. Israeli intelligence has concluded that Iran's new leadership is more extreme.

Market impact: Geopolitical tensions in the Middle East have escalated, potentially impacting energy prices and companies with significant exposure to the region. U.S. sanctions on Iran could tighten, affecting multinational corporations with Iranian operations. Defense stocks may benefit from increased U.S. military activity.

What to watch next: Iran's response to the U.S. actions, particularly any retaliation, which could drive oil prices and regional stability. U.S. sanctions updates, and any changes in Iran's leadership or policies, which could affect regional dynamics and energy markets.