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Bonds resume selling after bonds climb, but stocks rise following weak US job data
The dollar and major stock indexes fell on Friday, as expectations of a Federal Reserve rate hike this month dropped after weaker-than-expected US jobs data. The bond market resumed its ongoing selloff, which has seen global yields reach levels not seen for two decades. The closely watched Labor Department employment report revealed that nonfarm payrolls increased by 29,000 jobs in August, falling short of the 90,000 expected increase according to economists surveyed. The Labor Department's closely watched employment report showed that nonfarm payrolls?increased?by 29,000 jobs last month, short of the 90,000 expected gain according to economists polled by. After the report, bets on a Fed rate hike in October, after it raised rates last month for the first since 2023, dwindled. The Fed is now seen as having a 21% chance of raising rates by 25 basis point in October. This was compared to a 26% chance before the report. Joseph Purtell is senior vice president at Neuberger, and portfolio manager. He said that the labor market was not as hot as it had been in August. Purtell described the labor market as stable. As Friday's employment report came out, expectations for a rate hike in October had already begun to decline. This week, two top policymakers stated that they needed more data to decide 'what to do with interest rates next. LSEG says that the odds of a December rate hike initially decreased following the data, but then increased. Rates that are higher can be seen as negatives for stocks, because they raise the borrowing costs for consumers and businesses. The Nasdaq Composite gained 319.27 point to 27,190.86, a 1.2% increase. The Dow Jones Industrial Average?rose by 250.40 or 0.5% to 51,176.96. The S&P?500 grew by 56.27 or 0.7% to 7,722.72. The MSCI index of global stocks rose by 7.01 points or 0.6% to 1,140.27. The pan-European STOXX 600 rose by 0.75%. The dollar fell against the euro and the yen. The euro last rose 0.16% to $1.1259 The dollar fell 0.18% against the Japanese yen to 157.79. The gap between German and French yields is the widest since 2011. US Treasury yields initially fell following the jobs report, but later rose on the same day. Some investors noted that the jobs reports was not so poor that it eliminated chances for the Fed? to raise rates in the coming months. In recent weeks, global bond markets have steadily sold off as the US-Israeli conflict with Iran has pushed energy prices up. This has complicated the inflation outlook while further stretching already stretched public finances. Benchmark US 10-year yields closed the month of September with their largest quarterly increase since 1994. The yield on the benchmark US 10-year note was up 4.93 basis point at 5.283%. The yield on the 2-year note, which moves typically in step with Fed interest rate expectations, was up 4.63 basis points at 5.283%. The European Government Bond Markets remained volatile on Friday, with the difference between German and French 10-year Yields reaching the highest level since the Euro Zone Debt Crisis in 2011. German 2-year bond rates were flat at 3.05% after swinging between session lows of 2.943% to highs of 3.063%. French 2-year bonds were about 4 bps higher, at 3.73%. They had risen as much as 3.84% earlier. Italian 2-year bond yields are down 7 basis points at 3.547%. The yields on 2-year German bonds fell by nearly a quarter of a point this?week. Meanwhile, those on 2-year French debt rose nearly 14 basis points. Brent crude futures rose, while US West Texas Intermediate retained a part of its earlier losses. This was after European leaders accepted US President Donald Trump’s request for the release of diesel reserves. Brent rose 46 cents or 0.45% to $102.77 per barrel by 2:20 pm EDT (1820 GMT). WTI fell 1% to $91.90 per barrel.
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US FDA links Mexico facility to outbreak of lettuce parasites after closing probe
The US FDA announced on 'Friday that it had concluded its investigation of a summer parasite epidemic, and linked the illnesses with recalled'shredded iceberg lettuce' from Taylor Farms de Mexico. The regulator stated that while 'investigators' could not determine definitively how the contamination occurred, tests showed the parasite cyclospora was present in the environment of the lettuce growing and processing. Investigators discovered the parasite during the investigation at the Taylor Farms?de Mexico processing facility as well as at a lettuce field in Mexico. The regulator confirmed that two samples collected during inspections in Mexico were positive for cyclospora. One sample was taken from the tank of wastewater that Taylor Farms de Mexico used to process its products, and?the second came from an irrigation ditch at a?iceberg-lettuce grower who had been identified as part of a traceback investigation by the US Food and Drug Administration. Taylor Farms de Mexico didn't immediately respond to our request for a comment. The FDA stated that the FDA's analysis of patient illness reports and supply chain tracking clearly supported the linkage between the recalled lettuce, and the multistate outbreak which caused intestinal?sickness. The regulator is still analyzing the results of the genetic testing on both positive samples. The FDA also announced a 10-point plan for preventing similar outbreaks before the growing season of 2027. Actions include:?more surveillance of produce historically associated with the parasite, increased outreach to growers, and an outbreak investigation report with recommendations for prevention. On?September 11, the US Centers for Disease Control and Prevention (CDCP) declared that the outbreak was over. The CDC received reports on September 14 of 19883 cases of cyclosporiasis that were confirmed in the laboratory and two deaths.
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Global M&A deals slow down in the third quarter due to rising borrowing costs
M&A activity totaled $993 billion in the past three months, a 41% drop compared to second quarter 2026. This is the first quarter that has fallen below $1 trillion, since the second half of 2025. The ten megadeals worth more than $10 billion announced during the third quarter included Gold Fields' $25.7 billion bid to acquire Northern Star Resources and Banca Monte dei Paschi’s $32 billion offer for Banco BPM. This was the lowest quarterly number since the fourth quarter 2024. The surge in energy costs has fueled inflation and raised expectations about interest rates. The benchmark 10-year US Treasury Yield hit 5.34% Thursday, its highest since 2002 after posting the largest quarterly increase this century in three months up to September. John Collins, Morgan Stanley's global head of M&A, said that "at the margins (higher yields) makes valuations sometimes harder." "It's hard to quantify the impact, but I am not yet ready to declare a slowdown." The number of transactions fell by 8%, to levels not seen since the year 2020. Carsten Woehrn is Goldman Sachs’ co-head for M&A in Europe Middle East and Africa. If the current pace is maintained, he believes that the total value of the deals will surpass the peak in 2021. Woehrn stated that "Megadeals continue and we have seen significant activity in the past few months." Boards are feeling more pressure to close strategic deals. The?technology industry has seen unprecedented levels of investment, and strategic stake purchases of these companies have accounted for approximately one quarter of all global M&A deals so far in this year. Earlier this summer, Anthropic - the maker of Claude - and ChatGPT - the maker of OpenAI gathered tens billions of 'US dollars in investment. While US and European M&A fell dramatically in the last quarter, Asia Pacific M&A reached $242 billion. This is up 8% compared to the second quarter, and 36% compared to the same period last. The third quarter of this year saw a decline compared to the same period in the previous year. The cross-border business continues to be a major theme in this year, with a 32% increase compared to the same period of last year. We're seeing US companies considering acquisitions in Europe, for the first-time. They are taking advantage of the strong dollar. People are investing in the U.S. to take advantage of higher growth opportunities in the country, said Charlie Bouckaert. DEALMAKING AND TRILLION DOLLARS IPOs The new listings, especially in the tech sector, has given companies the currency they need to acquire rivals. SpaceX bought AI coding startup Cursor days after its blockbuster Nasdaq debut. The company's valuation soared to over $2 trillion. Collins stated that "one of the driving forces behind activity is that larger companies may be able to navigate the transition to?AI more effectively." SpaceX's June IPO helped to drive $215 billion in global initial public offerings (excluding SPACs) in the past year, the highest amount since 2021. This was despite a smaller number of deals compared to the same period in 2017. In the past three months,'stock sales' raised US$284 Billion, which is 26% less than proceeds raised in equity capital markets for the second quarter. However, this represents a 39% rise from the third?quarter 2025 thanks to offerings by SK Hynix, and Intel. Bankers warned that investors might be hesitant to invest in certain technology and AI deals. Andreas Bernstorff is the global head of equity markets at BNPParibas. Some IPOs were delayed in recent weeks as higher interest rates, and setbacks within the data center eco-system threaten to derail a slew new issues. Bankers are confident despite the uncertain future. Bouckaert stated that "strong secular trends, such as AI, are driving activity and we expect to see 2027 be another prosperous year."
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Officials claim that Israeli settlers killed Palestinians in West Bank
Palestinian officials reported that Israeli militant settlers killed one Palestinian and injured the other in an attack on Yasuf village in the Israeli-occupied West Bank, on Thursday. According to the UN, Israel's military, including settlers, has killed over 80 Palestinians since the start of 2026 in the West Bank. Jumaa Abdul Fattah, head of the village council, said that settlers killed Mashour Yassin during an attack against his home, which was located on the outskirts Yasuf. Fattah claimed that the?assailants' came from a settlement outpost near the village, which was built about two months ago. He added, "The settlers have attacked the village continuously ever since the outpost's establishment." Israeli soldiers claimed that Palestinians threw stones at "Israelis approaching the village" and the military dispersed the villagers. The Israeli military also fired at the Palestinians. The report did not explain why Israeli settlers had encroached on the village. Fattah claimed that the settlers shot two Palestinians before Israeli soldiers arrived. The Israeli military didn't immediately comment on timing. The rights groups claim that the growing presence of settler on the outskirts of villages is part of a?campaign to seize land and to eat away at the?territory in which Palestinians?aim to create a state. Israel captured the West Bank of Palestine in 1967. Since then, the territory is under Israeli military occupation. The settlers are encouraged by the government of Benjamin Netanyahu who has overseen the massive expansion of Jewish settlements. Most countries and the UN consider Israeli settlements illegal under international law that governs military occupations. Israel disputes that interpretation, claiming the status of the territory is in dispute.
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VAROPreem CEO: Europe's defense spending supports the shrinking refining industry
The CEO of Europe's largest refiner said that the sector's shrinking size is a result of the rising demand for fuel to support government defense plans. Data from the European Council show that in 2025, European Union member states' defense spending increased?for?the?11th consecutive year to EUR418.9 billion ($472 Billion), marking a 75 percent increase since 2021. Further gains are expected for this year. "Every conversation that I have with European governments is about resilience and continuity of supply. Dev Sanyal, CEO of VAROPreem, said on Thursday that the focus between 2015 and 2020 was to'shut down refineries. "European governments are aware that more fuel is needed. He added that there was a (also) need for more fuel because Europe wanted to gain a competitive edge in AI. FuelsEurope, an industry group, said that since 2009, 30 out of 100 European refineries have closed or been 'converted', and at least seven have been converted into biorefineries. This has severely reduced the production capacity for diesel, gasoline, or jet fuels in the European Union (EU), Britain, Norway, and Switzerland. "Now that defence spending is increasing, you realize that F-35s, Leopard tanks or US-made fighter planes don't run off biogas," said CEO of the Swiss-based VAROPreem. The company has refineries in Sweden and Germany, as well as refineries located in Switzerland, Germany, and Switzerland. According to the most recent Statistical Review of World Energy published by the Energy Institute, the refining capacity of EU countries, Britain and Turkey, as well as the Ukraine, Switzerland, and the Ukraine stood at 14,4 million bpd. This is down from the 17.5 mbpd of '2009. The price of diesel has risen dramatically since the Iran war cut off vital shipping routes and after sustained attacks on Russian refinery infrastructure. The benchmark European Diesel Futures Contract has reached highs of over $1,500 per metric ton, last seen after the Russian invasion of Ukraine 2022. Sources said that US retail diesel prices have hit a record of $6.50 a gallon in the last month. The US is increasing pressure on Europe to reduce diesel stocks.
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Asia's gas margins skyrocket on outages and China export ban, traders claim
The 'gasoline margin in Asia reached a new record on Thursday, as a result of various refinery outages and reports that Chinese refiners had halted fuel imports for the month of October. The crack or refining profit. Brent crude oil rose by $50.53 to $50.53 for gasoline. Four people who were briefed in the matter confirmed that Chinese refiners had suspended oil exports to October. Beijing is looking to preserve its domestic stock, and this move will further depress fuel markets already under pressure due to war. Brent futures were rolled over to next month's contract on Tuesday, resulting in a drop in the crude oil price. This would have?contributed to the crack widening. News of China's?reduction in product exports also supported the tightening of the Asian market," Alan Gelder said, senior vice-president, refining chemicals and oil markets, at Wood Mackenzie. The price of benchmark fuel has risen to $150.69 a barrel, its highest level since March this year. A Singapore-based gasoline dealer said, "Inventories have been low and there are refinery problems too. This is pushing prices up." The state-run Mangalore Refinery and Petrochemicals Ltd. (MRPL) in India cancelled Wednesday three spot tenders for refined gasoline after a fire broke at a processing facility. The refiner told the exchanges that the export tender would be refloated shortly after an evaluation of the situation. Market sources reported that a major South Korean refiner shut down its gasoline production unit as well due to "some issues". Singapore, China, India and South Korea are the top gasoline exporters of Asia. Enterprise Singapore data showed that Singapore's stocks of light distillates, including naphtha, gasoline and other fuels, had fallen to a 5-year low, falling to 10.514 billion barrels during the week ending September 30. This was largely due to an increase in exports of transport fuels. The period saw a total of 187,000 metric tonnes (approximately 1.5 million barrels) in gasoline imports, while exports rose to approximately?672,000. Australia led the way with 189,000 tons of gasoline exported, followed by Indonesia with 160,000 tons. China led the way with nearly 78,000 tonnes of gasoline inflows, followed by South Korea with about 46,000.
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Construction spending in the US surges in August
US construction spending surged unexpectedly in August, driven by non-residential buildings like offices and power plants. However, the trend was weak as higher mortgage rates weighed down on homebuilding. Census Bureau of the 'Commerce Department' reported on Thursday that construction expenditures jumped by 0.9% following a downwardly revised 0.1% drop in July. Economists surveyed by predicted construction spending would remain unchanged in August following a previously reported 0.5% decline in July. In August, construction spending fell 1.7% year-over-year. After falling by 0.2% in July, spending on private construction projects jumped 1.1% in august. Private non-residential investment increased by 1.0% in August. Spending on power plants increased by 0.9%, while expenditures on office projects rose by 4.6%. In August, investment in residential projects grew by 1.1%. This is likely due to renovations. The expenditures on single-family projects increased by 0.2% but fell 3.5% year-over-year. Since the US-Israeli War with Iran began in late February, the average rate for a 30-year fixed mortgage has increased by more than 100 basis points. This has affected demand and left an overhang of unsold homes on the market. Data from mortgage finance company Freddie 'Mac revealed that it?averaged 7.3%?last week. This is the highest level seen since January 2025. The spending on multi-family units, which make up a tiny part of the housing market in August, grew by 0.2%. Investment in public construction projects increased?0.2%, after increasing by 0.1%?in July. Construction spending by state and local governments increased 0.3% while federal government expenditures declined 0.7%.
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EU governments spent EUR18 Billion in 2026 to cushion the energy price rise
The European Commission stated in a report that the EU 'governments spent EUR17.9billion this year to 'cushion the effect of higher oil and gas prices on households and businesses. In a document to guide the discussions of euro-zone finance ministers during a meeting on October 8, the Commission also encouraged governments to "invest in electricity grids" and to tax it less than gas to encourage them to move away from fossil fuels. The Commission stated that the euro zone's economic growth is expected to be slightly higher this year than the 0.9% growth forecast in May. However, next year, it will likely be lower than the 1.2% growth forecast last year. The Commission said that inflation is expected to be roughly in line with the forecasts of 3.0% for this year, and higher than 2.3% in 2027. The note from the Commission stated that "the borrowing costs of Member States have increased substantially, underscoring the need for fiscal caution." It said that "in this context, since onset of the Middle East Conflict 25 Member States have implemented fiscal policy measures in order to mitigate the impact of high energy costs on households or businesses, at a cost of EUR17,9 billion (0.1% GDP of EU-27) by 2026." "More that?two thirds of the funding is for untargeted prices measures, which are not in line with the need to?target short-term actions to the most vulnerable and minimise fiscal costs as well as be consistent with the 'need to decarbonise energy system. The yields of euro zone government bonds are near multi-year highs, and the escalating energy crisis continues to support bets that at least three European Central Bank rate increases will occur by late 2027. The Commission stated that if governments wanted to help consumers and businesses they should do it through well-designed short-term, targeted, and temporary measures. This is a lesson learned from the energy crisis of 2022-2023.
The 5-week U.S.-Israeli air campaign has destroyed some of Iran's most treasured monuments.
The ancient city of Isfahan was shaken by a first wave of blasts. Minarets and domes were swaying in the famous square. Two days later, another bombing in Isfahan's city center left the 400-year-old palace complex covered with debris.
The Israeli airstrikes on March 7 and 9 shook monuments in Naqsh-e Jahan Square and Chehel Sotoun Palace - two of Iran's most prized cultural complexes. Plaster and broken tiles still crunch underfoot in some places, two weeks after the airstrikes.
Rasoul Mosavi said, "These buildings felt like a part of us", his head still covered in gauze after the explosion. He guided journalists through the museum, where he worked as a guard for 16 year. "This place is dear to me."
The intended target was less than 200 metres away from the roof: the Isfahan Governor's Building, which had been partially destroyed but appeared empty when struck. Before the U.S.-Israeli war on Iran ended, journalists had rare access in March to the palace, Naqsh-e Jahan Square and its surrounding area, and two palaces in Tehran. The journalists saw for themselves how the war had damaged Iran's historical sites, some of which are protected by an international treaty administered under the U.N. cultural agency UNESCO. The journalists reported damage to 11 historic buildings.
Experts who monitor the impact of war on world heritage sites confirmed damage to the Trans-Iranian Railway in Isfahan and the Jameh Mosque, as well as a 1,800-year-old castle near prehistoric caves where humans settled as far back as 63,000-years ago.
In the two decades that?the United States, its allies, and their coalition partners fought in Iraq, Syria Libya, and Afghanistan on ground and by air, there were no damage done to sites of cultural heritage listed by UNESCO at the time.
UNESCO is yet to send teams to sites listed in its register and relies on satellite imagery to assess 'the damage. UNESCO has'verified' damage to seven sites, including two that are on the international list, four cultural properties with national significance, and a religious place.
UNESCO said it had not been consulted before or during war, but that "all parties to the conflict" were provided with coordinates for critical sites.
The world body called on all parties to conflict to respect international law and take all necessary steps to protect cultural heritage.
The damage ranged from broken glass, cracked tile and shook foundations to shattered walls and shattered tiles. Bomb shock waves that radiated out at a speed nearly 20 times greater than sound were the main culprits. According to Wes Bryant a former U.S. Air Force targeting specialist, those waves can cause serious damage to structures up to a kilometer from the explosion itself.
Israel Defense Forces confirmed that they had targeted the Governor's Office in Isfahan. This is located adjacent to the UNESCO listed palace complex. The Israeli Defense Forces also confirmed that it struck a base of the Islamic Revolutionary Guard Corps on March 7, a little more than a kilometer away from the historical sites.
IDF stated that the IDF operated in accordance with International Law and only targeted military objectives. Israel's attacks, according to the statement, "were generally based on reliable information, operational verification and established approval processes and, when appropriate, legal review and were carried out conformément to applicable international law."
Eight experts in Middle Eastern Archaeology and Preservation of Heritage Sites said that the reporting shows a shift in U.S. Targeting Practices and Priorities away from Protecting Internationally Recognized Historical Landmarks. The Pentagon has changed its policies to protect cultural sites after two decades of widespread criticism over an American military installation in the ruins the ancient city Babylon.
Bryant stated that in recent wars historical landmarks were included on the "no-strike lists". He said this was because they had to be considered a military necessity such as saving the lives of soldiers and also receive high-level approval from officials, including the White House.
The sites that were damaged included the Golestan Palace in Tehran, the Naqsh-e Jahan Square in Isfahan and the Chehel Sotoun Complex. These sites have been confirmed by visits. Mehrnoush Soroush is the director of Center for Ancient Middle Eastern Landscapes at University of Chicago, which tracks damaged?cultural site in Iran. Her team has also confirmed damage to Jameh Mosque, in Isfahan, and the Andimeshk Railway Station along the Trans-Iranian Railway. This UNESCO-listed route connects the Caspian Sea, in the northeast, with the Gulf.
Soroush as well as UNESCO confirmed the extensive damage to Falak-ol-Aflak - an ancient fortress located in the Khorramabad valley of western Iran. Photos of window damage were verified. Israel's military warned Iranian citizens to avoid trains in early April, and Israel's official statement said that the Qom rail bridge was damaged to stop Iran from moving weapons.
Iran's UNESCO rep provided a list to the U.N. Cultural body of 134 cultural sites that it claimed were damaged by war. Despite not being listed on the UNESCO list, these sites are among Iran's most popular tourist destinations, bringing millions of tourists every year.
Only the railway was directly affected by the UNESCO site. Iran has marked its culturally most significant sites, such as the bazaar of Isfahan and the fortress located in the Khorramabad Valley with large blue shields. The Sa'dabad Complex, in Tehran, houses 18 historic palaces. The shields are an internationally recognised symbol that indicates their protected status as cultural property.
It's unbelievable. This was something I would never have imagined in my wildest dreams. Farshid Emami is an associate professor in the Department of Art History at Rice University, Texas. He has written a book about Isfahan Architecture.
The Pentagon has declined to comment.
Operation Epic Fury, the Trump administration's name for its war against Iran, was designed around four key objectives: destroy Iran’s ballistic missiles; demolish production facilities; sink their navy and weaken their proxy forces. "Unlike Iran the United States doesn't target civilians."
The gloves are off
The 1954 Hague Convention is a treaty that protects cultural heritage and explicitly protects Isfahan sites during war. International law considers the intentional targeting of cultural property to be a war crime. Any strikes against nearby targets should be carefully weighed up against any possible damage.
UNESCO's designation only covers a minority of the culturally significant monuments and buildings in a country. Some countries place more importance on their landmarks being listed by this U.N. agency. Iran has 27 sites listed, compared to 55 in Italy and just one in Uganda and Costa Rica.
The most prominent example of damage in Iraq during a U.S. led war was the ancient city Babylon. It was listed as a UNESCO world heritage site by 2019. Coalition forces used Babylon from 2003 to 2004 as a base, digging trenches at the site and installing infrastructure. Saddam Hussein had already damaged it before they arrived. Iraq also suffered cultural losses due to ground combat. These included the destruction of Mosul's old city and the looting of antiquities after the U.S. invasion. Trump withdrew America from UNESCO twice, in 2017 and 2025. He cited its support for divisive, woke cultural and social issues. The 2025 action will take effect this year.
In 2017, U.S. coalition forces led by the United States bombed Raqqa's walls, which date back to the 8th century, as a way of supporting ground troops that were fighting ISIS.
Stephennie Mulder is a professor of Islamic architecture and art at the University of Texas at Austin. She said, "As terrible as it was, I feel like that time felt like a golden age compared to the current situation, where the gloves have been taken off and no one cares." She is one of more than 400 researchers and scholars who signed the letter circulated in mid-April, condemning the destruction to Iranian cultural sites by the United States. Israel reported damage caused by an Iranian attack in Tel Aviv’s White City. This is a collection modernist buildings with Bauhaus influences from the 1930s, which are also listed on UNESCO's list. The U.N. said that it was conducting an investigation.
Pete Hegseth, the U.S. Secretary of Defense, has dismissed military engagement rules in large part. He claims that there will be "no mercies" shown to enemies. In April, President Donald Trump said that Iran's entire civilization would be destroyed if the country did not end its conflict. Both did not make a direct mention of heritage sites.
CULTURAL JEWEL
Isfahan, even by Iranian standards, is a cultural gem, compared to Rome, Athens, or Kyoto.
Isfahan is also home to a nuclear site in Iran. It sits on a vast plain of the high Iranian plateau, and straddles a river called Zayanderud. This Persian word means "life-giving". The river divides the city, with the northern part being older and home to historical sites and the southern section, which has wealthier neighborhoods and more modern residential complexes.
Residents gathered around the monuments and heritage sites near the Chehel Sotoun Palace in the Naqsh-e Jahan Square. This square is the largest in the city, measuring 14 soccer fields. It is also one of three UNESCO World Heritage Sites. Isfahan, like many other large cities in Iran, was engulfed by protests this year when anger over dire economic circumstances boiled over. The protests led to the largest crackdown since 1979's Islamic Revolution, which resulted in thousands of deaths, injuries, and prison sentences. Trump's desire to see the Iranian regime overthrown was cited as one of the main reasons for the launch "Operation Epic Fury", which took place in late February.
According to video footage, some of the Isfahan demonstrations and clashes between government forces and protesters took place in the Naqsh-e Jahan Square, and the bazaar was briefly closed during a general.
Israeli bombs targeted IRGC targets on March 7th, 300 meters away from the 400-year-old Si-o-se-pol Bridge over the River. Former residents of Isfahan claim that the complex was used as a detention facility by the elite military force. Israel's military admitted that the base was targeted.
Witnesses said that when bombs rained on the IRGC, blast waves reverberated a kilometer from the site, shaking Naqsh-e Jahan Square.
On March 9, two days later, another volley of bullets aimed at the governor's offices shook again the square and the adjacent Chehel-Sotoun Palace Complex.
Mosavi, an elderly security guard was wrapping up his shift in the Museum of Decorative Arts. The museum was converted from a '17th century royal palace. He said that he was at work because of a "queasy inner feeling".
Only 10 minutes later, twin explosions followed jets flying overhead.
The museum's windows were mostly shattered. The main hall's ceiling collapsed revealing the bones of the building. Mannequins dressed in traditional Iranian clothing were surrounded by plaster and glass.
The entire top floor of the Governor's Office, located less than 200 metres away, has been destroyed. The strike did not injure the governor. The team was not allowed to enter the building but met the governor at a café in the bazaar.
Mosavi displayed twisted gray metal fragments, which he and his employees referred to as shrapnel, at the entrance of the Museum. The fragments were similar to those found at the Sa'dabad Complex in Tehran, an 18th century site that was struck by bombs in March.
According to the U.S. Committee of the Blue Shield and two former military targeting experts, heritage sites like schools or hospitals are usually on the no-strike list compiled and maintained by military and intelligence agencies. According to international law, any collateral damage must be proportional to the expected military benefit of striking a site close to a heritage or cultural site.
Patty Gerstenblith is the head of the U.S. Committee of the Blue Shield. The group has trained the American military to protect cultural sites in wartime.
Gerstenblith, along with other experts, said that when Mosul and Raqqa was reclaimed by Islamic State the Blue Shield committee prepared and distributed informational material to the troops before the event. She added that without more information she couldn't judge if the Iranian strikes were appropriate from a military standpoint.
According to a document, Isfahan heritage officials made an initial assessment of the damage caused by the bombings at Naqsh-e Jahan Square. It was impossible to independently verify those findings.
Emami, an architectural historian from Rice University, stated that a thorough investigation was needed to confirm structural damage.
The bombings that occurred in Ali Qapu Palace early in March caused a tremor on a terrace which overlooked the large square, the music chamber, the marble fountain and the 18 wooden columns. Heritage officials took pictures of the crumbling wall, the cracks in the building's body, and the shattered glasses.
In the initial Iranian assessment, more than 70% the glass of windows and doors were broken and the plaster on two porches was separated from the main structure.
Ali Bordbar ran outside of his small carpet store in the bazaar when the bombings occurred on March 7. The bombings caused the two minarets at the southern edge to shake.
Bordbar said that it took hundreds of years for this site to be built. In a single moment, it could be destroyed.
The employees of the Naqsh-e Jahan complex brought in a bag filled with blue tiles that fell off when they visited the Shah Mosque. The Iranian damage assessment for the Isfahan Heritage Sites included a picture of a crack on one of the walls of the mosque.
A silver engraver at the bazaar stated that the economic effects of lost tourism revenues due to war are as devastating as the property damage or shattered glass.
The engraver stated, "This war paralyzed our nation."
The main alleys of the bazaar were nearly empty during the two days that I visited in late March. Only a few young men ran and cycled through them. Artists and musicians were setting up their stands in the bazaar, and some visitors started to arrive.
Iranians avoid speaking with foreign journalists for fear of being arrested or worse. Some expressed their dismay at the destruction of historic sites while others had more nuanced opinions.
Saeed, 32, who runs a sweets shop in the bazaar said that airstrikes had broken all the windows and the glass in his well-organized sweet shop. He declined to give his opinion on the war, as did many Iranians.
He said, "We're waiting for a good ending."
I WAS SHOCKED
The Golestan Palace is a centuries-old complex of royal buildings in Tehran. It's located just a few steps from the city's famous old bazaar. The protests began last December with the shopkeepers of the labyrinthine market. The 'labor strikes' quickly spread from the heartland of Iran’s economy, the old bazaar, to universities and cities throughout the country. The next step was a brutal Iranian crackdown. This was followed by weeks of bombing and the assassination of the supreme ruler in the 'opening salvo of war. The night of March 1, American forces and Israelis struck Tehran's judicial building adjacent to the ancient Palace, which was a sea debris with wooden artwork and mirrors falling from the ceiling.
As journalists stepped on glittering glass shards, a sharp cracking noise echoed from the ceiling of the palace. UNESCO has expressed its "concerns", over the damage to the site.
The morning of the attack was described by an archeology worker who had worked at the palace for almost 30 years. She cried as she recalled the experience.
She said, under condition of anonymity, "I was shocked and frozen to the spot in front of all that glass when I first came here."
She said that the blast waves had caused the most damage to the space in the throne.
The hall of mirrors, a few meters away was a sea of glass, which had previously adorned the walls and ceilings, as well as the pillars, of the room.
The team was denied access to the third part of a palace, which employees claimed had been damaged in blasts during the strikes on March 1. This area is prohibited, according to them, because it is adjacent to the government office that was targeted by the U.S. and Israel attacks. This building is associated with the Iranian judicial authority.
Tehran's judiciary is known for sending young Iranian men and woman who dared to criticize the regime to prison and even executions. Nearly 300 meters from the palace was the judicial building which came under attack.
The female employee who visited the palace two weeks after the destruction expressed her fears of damage that was invisible to her.
The employee stated that two employees were injured, but only in a minor way.
She suddenly announced that everyone should leave the room immediately after 15 minutes. She ran ahead, pointing at the ceiling, which she warned could collapse at any time. Maggie Michael M.B. (Reporting) Pell, Mari Saito, and Ryan McNeill. Additional reporting by Mayaan Lubell. Alaa Al-Marjani, Haider Kadhim Nour. Edited and produced by Lornant Hinnant, Sarah Cahlan.
(source: Reuters)