this is bbc news. the headlines: israel orders a "complete siege" of the hamas—controlled gaza strip, that announcement made a little earlier. the european commission also suspends all palestinian aid. israel describes saturday's assault as its 9/11. at least 700 israelis are dead, including 260 at a music festival. rocket attacks from gaza continue, with explosions heard injerusalem. the uk and us confirm they have citizens dead or missing. explosions gaza is under frequent bombardment.

this is the densely populated jabalia refugee camp. the area's health ministry says 560 people in the territory are dead. this is the scene live in gaza. israel's prime minister says his country's response will "change the middle east". we will have business news in a moment, but let's return to that development in the last hour or so, that the biggest donor to palestinians, the european commission, has suspended all aid programmes worth nearly three quarters of $1 billion. austria and germany have also suspended aid to palestinians. the announcement came as israel begins what it calls a total blockade of the gaza strip. let's go live to brussels and speak to our correspondence there, sophia. tell us more about the reasoning behind european decision.

we heard a short while ago from the european commissioner for neighbourhood enlargement and he said in a tweet that i can read to you that the scale of terror and brutality against israel and its people is a turning point. there can be no is business as usual. and he then goes on to say is the bigger doughnut the palestinians, the european commission is putting its full development portfolio under review with a total of 691 million euros. what that means is that according to the eu commission all payments will be immediately suspended, all projects will be put under review and all new budget proposals will be postponed until further notice. now, the commissioner goes on to say on twitter incitement to hatred, violence and glorification of terror have poisoned the minds of too many. we need action and we need it now.

these are quite strong words from the european commission which normally tries to use more diplomatic language. imilli normally tries to use more diplomatic language. will also sing other countries _ diplomatic language. will also sing other countries in _ diplomatic language. will also sing other countries in europe - diplomatic language. will also sing other countries in europe like - other countries in europe like austria and germany that have said today they are suspending aid worth tens of thousands of millions of euros to the palestinians. what tens of thousands of millions of euros to the palestinians. what are they saying — euros to the palestinians. what are they saying to _ euros to the palestinians. what are they saying to the _ euros to the palestinians. what are they saying to the basic _ euros to the palestinians. what are they saying to the basic pushbackl they saying to the basic pushback that it was explosions that carried out this attack, militants, and not palestinians and so —— bet it was hamas carried out this attack are not palestinians and so this is not aimed at the right people. aha, not palestinians and so this is not aimed at the right people.- aimed at the right people. a tape ressed aimed at the right people. a tape pressed the _ aimed at the right people. a tape pressed the briefing _ aimed at the right people. a tape pressed the briefing today - aimed at the right people. a tape pressed the briefing today a - pressed the briefing today a spokesperson of the european commission has asked that repeatedly and what they said was their main line is israel has the right to self—defence in response to the appalling attacks by hamas but they

also stressed that that should be donein also stressed that that should be done in line with international law. the eu is taking what is happening in the middle east extremely seriously. in fact, they have said today that they will convene an emergency meeting of foreign ministers tomorrow and that will be shared in a man and used to discuss the current situation in the middle east. foreign ministers are likely to come up to a joint statement and they will consider your response and next steps to the eu on the situation in the middle east. thanks very much- — situation in the middle east. thanks very much- let's — situation in the middle east. thanks very much. let's go _ situation in the middle east. thanks very much. let's go back— situation in the middle east. thanks very much. let's go back to - situation in the middle east. thanks very much. let's go back to the - situation in the middle east. thanks very much. let's go back to the live| very much. let's go back to the live pictures because just in that last sentence you were listening to a huge blast we have seen throughout the course of the day the israeli military action being carried out. this was the skylight which has been broadly unchanged there in gaza city as we lose those pictures but we

have various different feeds coming into the bbc over time and all of at telling us the same picture which is the relentless israeli response to what we saw over the weekend, the siege going on of the gaza strip but also military action, 500 strikes overnight and we have seen hundreds more through the course of the day. i want to just bring you an update in terms of new information coming into the bbc because we were talking a little earlier about a number of us losses and people from the uk missing all confirmed dead and we now have new information about a scottish man confirmed as being among those killed during the violence in israel. this is the bbc�*s live page that is constantly updated and there is the information that that scottish man bernard cowan

died on saturday and a statement released. we can just take back from that page from the distressingly details to pictures there from gaza city and a huge plume of smoke emerging as we watch those scenes. let me also tell you as we watch those pictures using the un secretary—general antonio guterres this will deliver remarks on the situation in the middle east in a little under an hour's time in about 15 minutes' time continued the terrace will address a huge concern in new york at the seams in the

middle east so much response promised by the israelis the scene is likely to deteriorate over the coming days. we will continue to monitor the live pictures on the latest detail coming to us. let's pose for a moment or two and catchable the business news of the day. then thompson is here with us. it might feel strange to talk about economics at a time like this but repercussion is being felt far and wide right now will start with that story, ongoing crisis and gives israel in gaza saying impact on markets and economies around the world jumping more than 5% in early trade taking it to more than $88. currently turning up about 3%. 0f currently turning up about 3%. of course neither israel nor the gaza strip are big oil producers but this conflict comes at a time and in a reason in almost a third of the

world's oil supply sourced and exported. but of course raising fear and a lot of nervousness. shares are slipping to an europe and they were down in the united states. we can get the latest in new york for us. we saw the similar pattern from asia to europe and following through into the us. . mil to europe and following through into the us. . �* ,, , ., the us. . all three us indexes are down this morning _ the us. . all three us indexes are down this morning as _ the us. . all three us indexes are down this morning as we - the us. . all three us indexes are down this morning as we see - the us. . all three us indexes are down this morning as we see oil l down this morning as we see oil prices are climbing. missing producers and defence companies going as well with lockheed martin “p going as well with lockheed martin up more than 7% this morning and... 0f up more than 7% this morning and... of more than 10%, exxonmobil up more than 4%. we are seeing airlines following. we sing that and we had some reflection of some of the flights being cancelled in israel and oil prices being higher as they are and, then, this is broadly in line with what we have seen during the political crisis in the middle east. oil prices go up in stock full

but the broader impact they will be told when we see whether and how this crisis unfolds and specifically whether it grows into a broader wider regional conflict and that will have a bigger effect on international markets. indie will have a bigger effect on international markets. we are lookinu international markets. we are looking at _ international markets. we are looking at the _ international markets. we are looking at the numbers - international markets. we are looking at the numbers and i international markets. we are i looking at the numbers and this international markets. we are - looking at the numbers and this is exactly that and equity markets falling and right back up just five shy of 4%. investors take flight and get nervous on equity markets and put money elsewhere instead but where they putting it?— where they putting it? investors feel like there _ where they putting it? investors feel like there is _ where they putting it? investors feel like there is turbulence - where they putting it? investors feel like there is turbulence and j feel like there is turbulence and uncertainty around them and when they do they tend to flock to a safe havens and that means moving away from riskier stocks and moving toward something that could even retain its value or possibly grow with uncertainty and when i haven't people look to precious metals and celebrity gold. we look to currencies such as the us dollar, japanese yen, swiss franc and we looked at injuries and worth noting

today us treasury markets are closed as a public holiday during the us. i know will stay right he was the story of another in in our thank you life there in new york. we have been saying the conflict could have wide reaching implications of the global economy was of course it has to huge impact at home too. israel's central bank said it tried to stabilise currency markets by announcing it will sell up to $4 billion a currency to shell up the —— to shore up the shekel. early i spoke to someone from capital economics it will be about the impact all of this could have. multiple angles to consider here. first of all, an impact on israel's economy alongside this human tragedy and significant economic disruption. policymakers ability to respond is also complicated by this much higher inflation world we are living in in the past and conflict between israel and gaza the central bank is often

lowered interest rates but they aren't able to do that at the moment because inflation is high so they had instead been focused on supporting the currency but beyond that there are much broader global implications and i think the real concern is that conflict we're seeing now could escalate and in particular events that include iran which many provided support and sympathy for the attacks. if iran gets dragged into this that could have much more serious impact on the global oil markets and pushed oil prices up even higher. yes. global oil markets and pushed oil prices up even higher.— global oil markets and pushed oil prices up even higher. yes, and it is that contagion _ prices up even higher. yes, and it is that contagion effect _ prices up even higher. yes, and it is that contagion effect that - prices up even higher. yes, and it is that contagion effect that has l is that contagion effect that has got markets a boot so we can talk first about all about oil and we note of the life of the world economy when there is nervousness about supply and potential disruption to supply prices started go up. where could this go? it is william cecil— go up. where could this go? it is william cecil at _ go up. where could this go? it 3 william cecil at this stage. if you thinking about how much oil might be

affected one of the key things to look at is that iran has been raising quite significantly over the course of this year and we are seemingly turning a brined dumb and blind eye despite sanctions and it is increased by about £7 million a day —— they asked seemingly turning a blind eye. that can be turned off quite quickly but it is also possible other sources like saudi arabia and the rest of the gulf could come online if the gulf countries for the oil prices were rising too quickly. than countries for the oil prices were rising too quickly. an assessment there are some _ rising too quickly. an assessment there are some of— rising too quickly. an assessment there are some of the _ rising too quickly. an assessment. there are some of the far-reaching there are some of the far—reaching implications of that crisis in the middle east right now. let meehan back to you. studio: ben, thanks very much. back to gaza city with pictures there whilst ben was given a sum of the latest details of a large blast we can see on the right—hand side that picture the flames that are emerging as another strike. we are watching also fronts's leader in germany's need to have been just giving the

latest details in hamburg after their meeting and were keeping an eye across that and i will bring you the latest from european leaders but there is so much attention on these events in the middle east with the un watching on whether as european capitals watching on and the fear of course is that we are in the beginnings of another cycle of israeli retaliation and worries that the situation on the ground will get considerably worse and already today we have seen more of these strikes but also we have seen the gaza strip being cut off and a siege being announced by the israelis a little earlier but in the last little while let me tell you what the un refugee agency, the head of that agency filippo grandi has been saying running the conflict had the potential to spread beyond the

region. we canjust read potential to spread beyond the region. we can just read you the quote. we are now witnessing another war in the middle east, the escalation of which will inevitably cause more suffering to civilians. both israeli and palestinians risk bringing grave instability to a region already pledged by tensions in a very dangerous piece in an growing mosaic of crisis which if not addressed courageously spells doom for world peace. strong comments carefully when refugee agency we know in five minutes and un secretary—general is going to talk to reporters —— strong of strong words there from the un refugee agency. they are watching these. chancellor scholz speaking there in hamburg in the last little while saying that those countries, germany, france, us and british leaders will hold talks tonight on the ongoing situation is israel so a

very, very fluid situation as you see there they seems there in gaza city on the screen thousand targets hit in gaza that was according to israel and a little while earlier those numbers likely to increase and you can see just the activity continuing even though the light has now gone continuing through the course of early evening in gaza city. in terms of the impact on the ground, people there in the gaza strip, i've been talking to a member of the norwegian refugee council a little early on the programme, jan edlund and we were talking about the lead up to perhaps a suspension of aid and support from some european

countries. this was my three talking to me a short while ago. —— this was jan egeland talking to me a short while ago. it jan egeland talking to me a short while auo. , . , jan egeland talking to me a short while ao. , . , , jan egeland talking to me a short whileauo. ,., , , while ago. it is a very, very bad situation- _ while ago. it is a very, very bad situation. getting _ while ago. it is a very, very bad situation. getting worse - while ago. it is a very, very bad situation. getting worse by - while ago. it is a very, very bad situation. getting worse by the | situation. getting worse by the hour. the terror against israeli civilians is the worst of the history of the nation but now there is not a rational response against terror. there seems to be a revenge collective punishment of the entire population on the gaza strip, 2.3 million people, nearly half of them children. this is the wrong reaction to horrendous terror. rah? children. this is the wrong reaction to horrendous terror.— children. this is the wrong reaction to horrendous terror. why do you say it is collective _ to horrendous terror. why do you say it is collective punishment? - to horrendous terror. why do you say it is collective punishment? becausel it is collective punishment? because the israeli government would argue that they are going after hamas and that they are going after hamas and thatis that they are going after hamas and that is what their various measures are really focused upon. but

that is what their various measures are really focused upon.— are really focused upon. but what 'ust are really focused upon. but what just happened _ are really focused upon. but what just happened is _ are really focused upon. but what just happened is that _ are really focused upon. but what just happened is that they - are really focused upon. but what just happened is that they said i are really focused upon. but what i just happened is that they said that there would be a total siege, total blockade of food, water, electricity and fuel to the entire population. 1 million children will not have food, water, electricity for hospitals, for operations, for anything. that's a violation of international law. it's collective punishment. what they should be is a course of a reaction to terror. my own country had a terrible terror act of terror and so has great britain and america and so has great britain and america and there has been terror in many places and collective punishment is not the way to go. just places and collective punishment is not the way to go.— not the way to go. just in the last hour austria _ not the way to go. just in the last hour austria has _ not the way to go. just in the last hour austria has said _ not the way to go. just in the last hour austria has said it _ not the way to go. just in the last hour austria has said it was - hour austria has said it was suspending its aid to palestinians

in response to what her mass did over the weekend while germany appeared to be doing much the same. there will be full decisions perhaps in the next 24 hours but in terms of a reaction to that source of international reaction, what you make of that?— international reaction, what you make of that? ~ ., ., ., ., make of that? well, none of that aid went to hamas. _ make of that? well, none of that aid went to hamas. that _ make of that? well, none of that aid went to hamas. that was _ make of that? well, none of that aid went to hamas. that was aid - make of that? well, none of that aid went to hamas. that was aid to - went to hamas. that was aid to palestinians, many of them living under occupation, living under siege. it seems to be a very irrational kind of response to the terror that everybody has to fight, everybody has to eliminate, taking away a two civilians, is that a rational response? no, it is not. explosions ministries got no development age —— hamas ministries. it was development aid for water, sanitation, education, etc,

livelihoods for one of the poorest publications we have which we draw —— one of the poorest populations we have which is the gaza population. when back in terms of what you are doing we hearing all the time development is about the siege and impact on the ground but what are your team is able to do? ijust spoke a couple of hours ago to a gaza chief. he needs a team of 52 courageous relief workers in gaza —— he leads a team. they are hoping to start with cash aid that we can distribute to 700 points across gaza where widows with children and others who are in the worst possible situation, those who have been bombed out of their apartments etc, can get a little cash for food, for medicine, etc. underthe

medicine, etc. under the bombardment, medicine, etc. underthe bombardment, underthese medicine, etc. underthe bombardment, under these siege it will be very difficult. the lead one for the so—called shelter cluster, emergency housing for people without housing. again, very difficult. we will try to do our best but at the moment many of our local staff are themselves fleeing from... and also from areas in the crossfire. in themselves fleeing from. .. and also from areas in the crossfire.- from areas in the crossfire. in 30 seconds if _ from areas in the crossfire. in 30 seconds if you — from areas in the crossfire. in 30 seconds if you would, _ from areas in the crossfire. in 30 seconds if you would, given - from areas in the crossfire. in 30 seconds if you would, given what we're saying, the reality on the ground, you would anticipate things are potentially going to get far worse? , �* �* are potentially going to get far worse? , ~ �* ., , worse? yes. all i'm hearing is thins worse? yes. all i'm hearing is things will— worse? yes. all i'm hearing is things will become _ worse? yes. all i'm hearing is things will become very - worse? yes. all i'm hearing is things will become very much | worse? yes. all i'm hearing is - things will become very much worse and many innocent people will suffer and many innocent people will suffer and the bitterness and hate this will be fuelled on both sides. it's the worst possible development. jan egeland. we have also been

talking to mustafa barghouti, the general secretary of the palestinian national initiative who gave me his assessment. let national initiative who gave me his assessment-— national initiative who gave me his assessment. , ., _ _ assessment. let me start by saying i feel sorry for — assessment. let me start by saying i feel sorry for any _ assessment. let me start by saying i feel sorry for any lives _ assessment. let me start by saying i feel sorry for any lives lost _ feel sorry for any lives lost whether palestine or israel but at the same time what is happening now in gaza is a total disaster and totally unacceptable and is declared officially by the israeli prime minister benjamin netanyahu in my opinion is behaving like a war criminal declaring total acts of collective punishment over 2.2 million people living in 100 square miles. cutting off electricity, water, supplies, food supplies, medications. i have received since the morning so many calls from people with a renal failure, people with cancer, people with heart disease who cannot get to their treatment and at the same time he is conducting air strikes telling people of gaza are that they should leave their homes. where should they go to? 70% of the population of

gaza, 2.2 million people were ethnically cleansed by as well in 1948. they are refugees in gaza and thatis 1948. they are refugees in gaza and that is so terrible. i 1948. they are refugees in gaza and that is so terrible.— that is so terrible. i will come back to what _ that is so terrible. i will come back to what is _ that is so terrible. i will come back to what is going - that is so terrible. i will come back to what is going on - that is so terrible. i will come back to what is going on and l that is so terrible. i will come - back to what is going on and gather in a moment but in terms of what we witnessed from her mass in gaza over the weekend and continuing to fire rockets at israel was wanton killing, executions, kidnappings. that was an outrage plain and simple, wasn't it?— that was an outrage plain and simple, wasn't it? yes, i know. there is human _ simple, wasn't it? yes, i know. there is human suffering - simple, wasn't it? yes, i know. there is human suffering here i simple, wasn't it? yes, i know. i there is human suffering here and simple, wasn't it? yes, i know. - there is human suffering here and it is serious and we don't want to see it but the big question here is why we are in the situation? it's because the palestinians have been under military occupation for 56 years and nobody did anything to push the peace process towards an end of this occupation. because palestinians... end of this occupation. because palestinians. . ._

end of this occupation. because palestinians... ., ., ., palestinians... no, no... let me ask our palestinians... no, no... let me ask your question- _ palestinians... no, no... let me ask your question. because _ palestinians... no, no... let me ask your question. because she'd - palestinians... no, no... let me ask your question. because she'd a - palestinians... no, no... let me ask your question. because she'd a talk| your question. because shed a talk about the context of this. isn't leadership sometimes when we see really terrible things to actually say difficult things, to simply say, i condemn this, with no sort of caveats, no sort of context, in terms of what we saw over two days there in israel, carried out by hamas, a total condemnation with no caveats? ida hamas, a total condemnation with no caveats? ., ., , ., , caveats? no caveats. i condemn any civilian killed, _ caveats? no caveats. i condemn any civilian killed, anyone _ caveats? no caveats. i condemn any civilian killed, anyone who _ caveats? no caveats. i condemn any civilian killed, anyone who kill- civilian killed, anyone who kill civilians. i do not accept killing civilians. i do not accept killing civilians. that's for sure. but you cannot only look at the israeli side. you have to look at the fact we have been enslaved in a system of apartheid and occupation force to five years. these people have been ethnically cleansed. these people in gaza are defy from any future —— for 75 years. they had to apply dominant deprived of occupation and any future. natives and the people are

completely unemployed. they have nothing to hope for. that's why they will turn to violence. palestinians are giving nothing, nothing. let me ask you, how would a country? how would a country? how the country? you come close there is trying to justify the violence in terms of reality it was absolutely obvious wasn't itjust might retaliation it wasn't itjust might retaliation it was obvious a mass carrying out actions like this was going to trigger this in terms of all those ordinary people in gaza? that was obvious, wasn't it? i ordinary people in gaza? that was obvious, wasn't it?— obvious, wasn't it? i hope you can rive me obvious, wasn't it? i hope you can give me the _ obvious, wasn't it? i hope you can give me the same _ obvious, wasn't it? i hope you can give me the same chance - obvious, wasn't it? i hope you can give me the same chance she - obvious, wasn't it? i hope you can| give me the same chance she gave obvious, wasn't it? i hope you can i give me the same chance she gave to the israelis and allow me to finish my sentence is please. or do you want me to stop talking? you continue- _ want me to stop talking? you continue. welcome _ want me to stop talking? you continue. welcome event, . want me to stop talking? you - continue. welcome event, please don't allot — continue. welcome event, please don't allot me. _ continue. welcome event, please don't allot me. listen. _ continue. welcome event, please don't allot me. listen. -- - continue. welcome event, please. don't allot me. listen. -- welcome don't allot me. listen. —— welcome event, please don't interrupt me. the main plot stomach problem is occupation and the system of apartheid that is oppressing palestinians for decades. way out of

this is to end occupation, end apartheid. attacking as it is not a solution. ~ , . . apartheid. attacking as it is not a solution. ~ ., ., ., ,, solution. mustafa barghouti talking to me early and _ solution. mustafa barghouti talking to me early and you _ solution. mustafa barghouti talking to me early and you will— solution. mustafa barghouti talking to me early and you will have - solution. mustafa barghouti talking j to me early and you will have heard three huge explosions there in gaza city. we will be back live on bbc news in a moment auto. hello. it was a real weekend of contrast. some exceptionally wet weather across scotland, in fact the wettest spot having nearly 180 millimetres of rain. so, there are still some flood warnings in force — that means danger to life. details on the website, including numerous other flood warnings. and there are more weather warnings out for tomorrow, but for today the weather front is still with us, but it's a weak affair, so a respite from the rain for many parts of scotland, just dribs and drabs on this weather front remaining. it will tend to pep up as it pushes north later. but for most other parts it is largely dry, bright and sunny spells, quite warm, temperatures again knocking on the door of what we saw on sunday for northern ireland,

england and wales. but overnight temperatures not falling back much, but the misty low cloud around the coasts will creep inland, one band of rain pushes into the northern isles and we will see another following suit. this is the warning in time for tomorrow, really, across western scotland. but given all the cloud again tonight, it will be a mild one for all. a ridge of high pressure close to the south means another fine and dry day for most of england and wales. cloudier skies coming into northern ireland eventually, but again most of the rainfall — 15—20 millimetres quite widely, but as much as 40 or 50 millimetres could fall over hills and again that is a concern as the ground is saturated, the rivers are full and cannot take any more at the moment, so we need to be aware there could be further flooding as we go through into tuesday as well, but further south it is a very different story and some places haven't had any rain at all so far this october. as we go through tuesday night and into wednesday, it is likely some areas further south will see some rain —

heavy rain, potentially — pushing through wales into the midlands and then easing further southwards, which means drier weather on wednesday for scotland, drier and clearer with sunshine across northern ireland and northern england. a fresher feel here, though, still quite warm, despite the increased cloud and some rain further south. that weather front hangs around in the south through thursday, potentially peps up through friday, joining forces with low pressure to the south, low pressure to the north as well, so overall an unsettled picture towards the end of the week as well, and looking to get fresher, even in the south, this weekend.

live from london. this is bbc news. israel orders a �*complete siege' of the hamas—controlled gaza strip cutting off power and food. the european commission also suspends all palestinian aid. israel describes saturday's assault as its 9/11. at least 700 israelis are dead including 260 at a music festival. rocket attacks from gaza continue — with explosions heard injerusalem. the uk and us confirm they have citizens dead or missing. explosions gaza is underfrequent bombardment this is the densely populated jabalia refugee camp. the area's health ministry says 560 people in the territory are dead.

this is the scene live in gaza as the sun sets. israel's prime minister says his country's response will �*change the middle east'. welcome to verified live, three hours of breaking stories and checking out the truth behind them. israel's defence minister says he's ordered a "full siege" of the gaza strip. after israel's biggest loss of life in generations, the minister said there would be no power, no food, no fuel and that everything would be closed down. this is live in gaza. the sun is setting but you can still see smoke billowing across the skyline. three very large explosions in the last few minutes. the european commission has also announced the immediate suspension of all aid to palestinians.

the united nations secretary general, antonio guterres, is due to