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Iranian state TV confirms the supreme leader has been killed on the first day of massive US and Israeli air strikes on the country.
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Iran responds by launching missiles and drones towards Israel and four Gulf Arab countries that host US military bases.
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There is no confirmation by the US or Israel of the strike on the school located near elite military troops.
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Smoke and flames rose from Dubai's Fairmont The Palm hotel as civilian targets came under fire along with the US military bases across the Middle East.
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The excess of politicians' children was front and centre of the anger that drove protests that toppled the government last year.