Israeli Attacks on Iran – Summary and Conclusions
What happened
Israel launched airstrikes on critical Iranian military and nuclear facilities, targeting uranium enrichment operations and ballistic missile sites.
Key generals of the Revolutionary Guards, including the head of the air force and the army chief, were killed in a meeting inside an underground bunker.
Iran responded by launching drones and warning of extensive retaliation, threatening Israeli and American interests in the region.
President Trump urged Iran to negotiate “before it’s too late,” implying worse attacks could follow.
Mossad reportedly assisted through sabotage and intelligence for targeted strikes, according to Israeli sources.
Israel announced that the attacks will continue “for as long as necessary.”
Iran and Israel Attacked each other last night.
Geopolitical and Military Developments
The attacks hit locations in Natanz, Shiraz, Tabriz, and possibly other facilities.
Iran is facing internal turmoil, having retracted statements regarding the successors of its military leaders.
The UN’s nuclear agency (IAEA) detected no radiation leaks, suggesting the main facilities were not breached — likely a deliberate move to avoid an environmental disaster.
Economic Impacts
Oil spiked as much as 13% before settling at +7%.
Gold rose, while U.S. government bond yields dropped (prices increased).
Global stocks declined, especially in the U.S. and Europe. Airline and tourism stocks were hit hard.
Leviathan (Israel's major natural gas field) ceased operations, pushing European natural gas prices up by 6.6%.
Shipping companies and oil tankers are avoiding the Persian Gulf and the Strait of Hormuz due to war risks.
International Reactions
Saudi Arabia and Oman condemned the strikes as violations of international law.
The UK and other European nations called for de-escalation.
The U.S. did not participate but was warned in advance and proceeded to evacuate personnel from Middle East bases.
The Trump-Netanyahu relationship appears strained, despite the close U.S.-Israel alliance.
Conclusions & Investment Analysis
The Israel-Iran conflict has entered a new phase, targeting military leadership rather than enrichment infrastructure — possibly indicating a "warning" strike.
Whether the crisis escalates into a regional war depends on Iran’s response: military, energy-related, or targeted attacks on Western interests.
If Iran targets oil/gas flows from the Strait of Hormuz, prices could surge by $20 per barrel, analysts warn.
Investors appear not to have fully priced in the threat of widespread conflict — current risk levels are not fully reflected in markets.
Scenarios: Israel-Iran Crisis & Market Reaction
Markets have not fully priced in the threat of a generalized conflict. Below are possible scenarios by asset class:
Forex
• Mild Iranian response: Drones, small-scale strikes
→ USD steady, 📉 Emerging Markets FX slightly pressured
• Broad Iranian attack: Missiles or Israeli targets
→ USD & JPY rise, EUR & Emerging Markets FX drop sharply
• Energy war: Attack on Hormuz
→ USD, JPY, CHF see sharp spike – flight to safety
Crypto (BTC, ETH)
• Mild tension:
→ BTC fragile, no clear haven behavior
• Military escalation:
→ Initial drop (risk-off), potential rebound as BTC viewed as hedge
• Cyber conflict or blackout:
→ Fear of exclusion → stablecoins, DEX activity, chain risk
Commodities (Oil, Gold, NatGas)
• Limited strike:
→ Oil +3–5%, Gold +1–2%
• Strike on Hormuz or energy facilities:
→ Oil +15–20%, NatGas spike, Gold +5–10%
• Regional war escalation:
→ Oil +25%, Gold surges as high-risk hedge
Equities
• Mild conflict:
→ Small correction, only sensitive sectors (tourism, airlines)
• Broader escalation with retaliation:
→ S&P -5%, Energy +10%, Defense +15%, Tourism -20%
• Full-blown war / U.S. involvement:
→ S&P -10%, NASDAQ -15%, Lockheed, Raytheon breakout strongly upward
Posted Using INLEO