Iran launched an unprecedented missile and drone attack on Israel over the weekend, citing retaliation for a recent strike on its diplomatic compound in Syria. The attack resulted in damage to an Israeli army base and injuries to a young girl, but Israel managed to intercept the majority of the incoming missiles and drones.
Iran declared its attack a success and its mission to the United Nations announced on X that the matter “can be deemed concluded,” with a warning for the United States to stay out of the conflict. Meanwhile, Israeli Prime Minister Benjamin Netanyahu emphasized uncertainty ahead, stating, “Whoever strikes Israel, we will strike him.”
The conflict has sparked diplomatic efforts to prevent a larger regional war. The foreign ministers of Iran and Saudi Arabia discussed the crisis by phone, though few details were released. In a possible sign of stabilization, Iran lifted a suspension on both domestic and international flights from its capital early Monday.
Market reactions were relatively muted, with Asian stocks falling amid the tensions and concerns over potential prolonged US interest rates. Brent crude initially rose but quickly stabilized, while gold reached near-record levels.
The United States reaffirmed its “ironclad” support of Israel’s security and stated it would consult with other nations on potential measures to hold Iran accountable at the UN. The UK, France, EU, and other nations condemned Iran’s attack, while Russia placed the blame for the crisis on Israel’s conflict in Gaza.
Source: Bloomberg