Stock markets across the Gulf fell on Sunday morning after Israel and Iran launched fresh attacks on each other overnight, sparking fears of a widening conflict in the Middle East.

Israel’s leader and President Trump appeared to bet they can persevere, but other world leaders warned of unintended outcomes in a volatile region.

Iran does not want its conflict with Israel to expand to neighbouring countries unless the situation is forced, Foreign Minister Abbas Araqchi said on Sunday, adding its response had been based on self-defence.