Israel recently launched powerful airstrikes on Iran, aiming to destroy Tehran’s nuclear infrastructure and eliminate key military leaders. As a result, concerns about a possible full-blown war have intensified across the region.
Prime Minister Benjamin Netanyahu confirmed that these attacks mark the beginning of a longer mission.
“We are at a decisive moment in Israel’s history,” he said in a video message.
“Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel’s very survival. This operation will continue for as many days as it takes to remove this threat.”
Notably, this offensive caused panic in global markets, led to a rise in oil and gold prices, and disrupted international flights.
Strikes Target Iran’s Nuclear and Military Sites
To begin with, Israel said the attacks targeted several locations, including nuclear facilities, missile production plants, and top military officers on June 13.
Soon after, explosions were reported at Iran’s main uranium enrichment site in Natanz. This was confirmed by Iranian media and reported by Reuters.
In addition, Iran’s Revolutionary Guard announced that its top commander, Hossein Salami, was killed. Moreover, their headquarters in Tehran came under direct attack.
Meanwhile, General Mohammad Bagheri, Iran’s armed forces chief of staff, was also reportedly killed.
Later, the Israel Defense Forces stated on X, “We can now confirm that the Chief of staff of the Iranian Armed Forces, Commander of the IRGC and the Commander of Iran’s Emergency Command were all eliminated in the Israeli strikes across Iran by more than 200 fighter jets.”
Iran Responds with Drone Attacks
In response, Iran vowed to retaliate. Supreme Leader Ayatollah Ali Khamenei warned that Israel would face “severe punishment.”
Following the warning, Iran launched hundreds of drones toward Israel, according to Israeli sources.
Brigadier General Effie Deffrin, the Israeli army’s spokesperson, told the Associated Press:
“In the last few hours, Iran has launched more than 100 drones toward Israel, and all the defence systems are acting to intercept the threats.”
United States Distances Itself
At the same time, the United States clarified that it had no role in Israel’s actions. Secretary of State Marco Rubio stated:
“We are not involved in strikes against Iran, and our top priority is protecting American forces in the region.”
According to the White House, Israel took “unilateral action against Iran.”
Air Travel Disrupted Across Region
Consequently, air travel across West Asia has suffered severe disruptions. For instance, Israel closed its main airport and suspended all flights by its national airline, El Al. Likewise, Iran also closed its airspace, according to state media and pilot notices shared by Reuters.
In the interest of passenger safety, Air India diverted or returned long-haul flights from cities like New York, Vancouver, Chicago, and London. Furthermore, Iraq shut down its airspace and halted all air traffic.
Shortly after the Israeli operation, Jordan’s civil aviation authority also announced the closure of its airspace to all flights. In addition, Qatar Airways canceled two scheduled flights to Damascus, as tracked by Flightradar24.
Oil Prices Rise as Conflict Escalates
Because of the strikes, oil prices soared. Traders now fear a wider conflict could block the Strait of Hormuz—a crucial channel between Iran and Oman through which 20% of global crude oil passes each day.
As a result, US crude oil prices rose by 8.2%, or $5.6, reaching $73.61 per barrel and Brent crude increased by $5.52 to reach $74.88 per barrel
Bloomberg, citing JPMorgan, reported that prices could reach $130 per barrel if the Strait gets blocked or the conflict expands across the region.
However, oil traders in Singapore say it’s still too early to predict major disruptions. “It’s too early to tell but I think the market is worried about shutting off of the Strait of Hormuz,” one trader told Reuters.
Moreover, Barclays analyst Amarpreet Singh observed, “In a worst-case scenario, the conflict could expand to other key oil and gas producers in the region, and shipping,” he wrote in a note.
Markets Drop, Gold Prices Jump
In the meantime, the impact reached financial markets as well.
Indian stock markets opened lower on Friday, dragged down by oil and gas shares. The Nifty 50 dropped by 1.21% to 24,586.7 and the BSE Sensex fell by 1.2% to 80,710.56.
Additionally, the MSCI Asia ex-Japan index slipped by 1%. On the other hand, gold prices climbed, as investors turned to safe-haven assets during the conflict.
Spot gold increased by 1.2% to $3,423.30 per ounce and US gold futures also rose by 1.2%, reaching $3,444.50.
Tim Waterer, chief analyst at KCM Trade, told Reuters, “Gold surged past resistance around $3,400 on news of the airstrikes, and further upside could be in store should the escalation continue.”
Experts Warn of Economic Fallout
Finally, experts have warned that if the conflict continues, the economic fallout could widen.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “The impact on the market will depend on how long the conflict lingers. In the near term, the market will be in a risk-off mode.”
He added that industries using oil-based products—such as aviation, tyre, paint, and adhesive sectors—would suffer the most.
However, domestic oil producers like ONGC and Oil India might remain strong. He also noted that the Nifty index could find solid support around the 24,500 mark.