Open conflict between Israel and Iran entered its fourth day with no sign of de-escalation, raising fears of a wider regional war. Iran launched multiple drone and missile attacks, while Israel struck Tehran, killing a top military official.Since Friday, 224 people have died in Iran—mostly civilians—while Israeli sources report 14 deaths and around 400 injuries.
The conflict began with Israel’s surprise strikes on Iranian military and nuclear sites, highlighting its air superiority and limiting Iran’s ability to respond.
Iran faces a strategic challenge: it must retaliate without escalating further, as its regional proxies have been largely restrained. Meanwhile, former U.S. President Donald Trump called for peace, claiming a deal is possible and ongoing talks are underway.Tensions between Israel and Iran continue to escalate with no sign of resolution.
Israeli PM Netanyahu vowed retaliation, calling the conflict “existential,” while Israel targeted multiple Iranian military sites, killing key IRGC officials. Iran also launched fresh strikes.Former U.S. President Trump called for peace but admitted, “sometimes they have to fight it out.”The conflict rattled regional markets: stocks fell in Saudi Arabia, Egypt, and Qatar, while the Egyptian pound dropped 1.8%. Israeli defense stocks rose. Brent crude jumped 5.5% in early Asian trading before easing, while broader Asian markets remained stable.
Energy Risks:An explosion at Iran’s gas plant near South Pars raised fears of further energy price hikes. Though oil sites weren’t hit, Brent crude surged. Iran’s nuclear facility in Isfahan was seriously damaged. Tehran threatened to halt cooperation with the IAEA and exit the Non-Proliferation Treaty.
Rising Conflict:Israel and Iran’s shadow war escalated into their most serious clash yet. Israel struck key nuclear and military targets, claiming air superiority. Iran warned of severe retaliation.Global Impact:Markets reacted with rising gold prices and falling regional stocks. Iran canceled U.S. nuclear talks. Trump denied U.S. involvement but said a deal is still possible.
The conflict is set to dominate G7 talks, with Israel urging Western support.Germany, France, and the UK are ready to negotiate with Iran on its nuclear program.It’s unclear if Iran will attack tankers in the Strait of Hormuz, which could draw the US into the conflict.Analysts say Iran likely avoids this due to its weak economy, high inflation, and public unrest.
