U.S. fighter jets have increased activity at the Al Udeid Air Base in Qatar, which is located 200 to 300 kilometers away from the border with Iran, and the U.S. government has issued an emergency alert to urge its citizens to leave Iran.
According to reports of Israeli media, several U.S. warplanes, including KC-135 aerial refueling tanker and B-52 strategic bomber, took off from Al Udeid Air Base on Sunday night.
The Air Base, located about 35 kilometers southwest of Doha, capital of Qatar, is home to more than 10,000 U.S. soldiers. It is one of the largest U.S. military bases in the region, with a 4,500-meter-long runway capable of accommodating large military aircraft such as B-52 strategic bombers and transport planes. White House press secretary Karoline Leavitt said Monday diplomacy remains the preferred approach for the United States to deal with Iran, though the Trump administration will not rule out military options if necessary.
U.S. "President (Donald) Trump has always expressed that diplomacy is the first option," Leavitt said on Fox News. "However, he is unafraid to use the lethal force and might of the United States military if and when he deems that necessary."
"What President Trump will do next only he knows, so the world will have to keep waiting and guessing, and we will let him decide," she said, refusing to discuss any potential U.S. actions or policy decisions concerning Iran.
Also on Monday, the Department of State of the United States urged its citizens to leave Iran immediately.
The Department asked U.S. citizens in its emergency alert to make a leaving plan that does not rely on assistance from the U.S. government, and reminded those who cannot leave Iran to remain at safe areas and store daily necessities like water, food and medicines.
US warplanes increase activity at Al Udeid Air Base in Qatar while US citizens urged to leave Iran
U.S. stocks finished slightly higher on Monday, staging a late-session recovery as investors navigated a volatile landscape marked by a criminal probe into the Federal Reserve leadership.
The Dow Jones Industrial Average rose 86.13 points, or 0.17 percent, to 49,590.2. The S&P 500 added 10.99 points, or 0.16 percent, to 6,977.27. The Nasdaq Composite Index increased by 62.56 points, or 0.26 percent, to 23,733.9. Despite the positive close, the market experienced significant intraday turbulence, with the Dow dropping nearly 500 points at its session lows.
Nine of the 11 primary S&P 500 sectors ended in positive territory. Consumer staples and industrials led the gainers, rising 1.42 percent and 0.75 percent, respectively. Financials and energy were the primary laggards, declining 0.8 percent and 0.66 percent.
Market sentiment was initially shaken by an announcement on Sunday from Fed Chair Jerome Powell, who confirmed that federal prosecutors are investigating him over the Fed's multi-billion-dollar project to renovate its headquarters. Powell characterized the probe as an attempt by the Trump administration to compromise the Fed's independence.
Further weighing on the financial sector was a proposal by U.S. President Donald Trump to cap credit card interest rates at 10 percent for one year, which triggered a sell-off in banking stocks amid concerns over restricted lending and reduced profitability. Capital One shares plummeted 6.42 percent, while Citigroup, JPMorgan and Bank of America also recorded losses.
In contrast, retail giant Walmart led the Dow's advance, climbing 3 percent following news of its upcoming inclusion in the Nasdaq 100 index. The company also announced a strategic partnership with Google's Gemini AI to enhance the digital shopping experience.
Investors are awaiting Tuesday's release of the U.S. consumer price index for December 2025. Following last week's cooling labor market data, market participants increasingly expect the Fed to maintain interest rates at their current levels during the upcoming January meeting.
U.S. stocks close higher amid criminal probe into Fed chair Powell
