Israel Launches Strikes on Iran, Markets Plunge, Oil Soars
Moneylife Digital Team 13 June 2025
Israel launched a series of coordinated airstrikes across multiple Iranian cities in the early hours of Friday, dramatically escalating long-simmering hostilities into a full-blown military conflict. The attack, aimed primarily at Iran’s nuclear infrastructure, claimed the lives of several high-profile Iranian figures, including Islamic revolutionary guard corps (IRGC) commander-in-chief Hossein Salami.
 
The high-impact assault has sent shockwaves across the Middle East and beyond, with oil prices jumping over 10% in late trading amid fears of a broader regional conflict. Brent crude surged past US$75 per barrel, while global stock markets reacted sharply. In the US, Dow Jones futures plummeted over 700 points, while the S&P 500 and Nasdaq saw significant declines.
 
The airstrikes have already had far-reaching economic repercussions. Apart from the spike in oil prices, gold surged toward the US$3,450 per ounce mark as investors sought safety in precious metals. Wall Street’s sharp fall on Thursday followed otherwise positive domestic economic signals, indicating that geopolitical fears are outweighing market fundamentals.
 
Iranian state media confirmed the deaths of two senior nuclear scientists, Fereydoun Abbasi-Davani and Mohammad Mehdi Tehranchi, in targeted attacks. Both were closely involved in Iran’s nuclear research and enrichment efforts. Several key installations, including facilities in Natanz, Khandab, and Khoramabad, were struck. These locations are known to host uranium enrichment sites, a heavy water reactor, and a missile base respectively.
 
Israeli prime minister (PM) Benjamin Netanyahu described the air campaign, dubbed 'Operation Rising Lion', as a necessary action to neutralise an imminent threat. “This operation will continue for as many days as required until Israel is safe,” Mr Netanyahu said in a national address.
 
Defence minister Yoav Gallant declared a national emergency shortly after the attacks began, warning Israeli citizens of a potential retaliatory missile and drone barrage. Air traffic in and out of Tel Aviv’s Ben Gurion International Airport was suspended, and emergency shelters were opened across central Israel.
 
In a defiant response, Iran’s supreme leader Ayatollah Ali Khamenei vowed retribution. “The Zionist regime has committed a grievous crime and brought a bitter fate upon itself. We will respond decisively,” he says in a televised statement.
 
Residents in Tehran reported hearing loud explosions and anti-aircraft fire throughout the night, particularly in the eastern and northern districts. Iranian news outlet IRINN reported multiple fatalities and scenes of destruction in the capital. Videos circulating on social media appeared to capture the chaos, showing fireballs lighting up the sky and buildings shaking from the blasts.
 
The US, which was briefed in advance of the Israeli operation, maintained its distance from the strike. Secretary of state Marco Rubio says, “The US is not involved in these military actions. Our priority is safeguarding American personnel across the region.” 
 
Earlier, the US state department had issued heightened security warnings for Americans in the Middle East.
 
President Donald Trump, speaking to Fox News, reiterated his stance on Iran’s nuclear ambitions. “Iran cannot be allowed to possess a nuclear bomb. We are watching developments closely and still hope they return to the negotiating table,” he says. 
 
The president had approved the partial evacuation of US personnel earlier in the week, citing rising instability in the region.
 
The Israeli offensive marks one of the most direct and provocative military actions against Iran in recent years. Previous confrontations had largely played out through proxy engagements in Syria, Lebanon, and the Gulf. This strike, however, hits directly at the heart of Iran’s military and nuclear leadership.
 
While Israel claims it acted in pre-emptive self-defence, Tehran views the operation as an act of war. Analysts warn that Iran’s response could trigger a much larger conflict involving regional players like Hezbollah in Lebanon and Houthi rebels in Yemen, both aligned with Iran.
 
The United Nations (UN) has called for restraint from all parties, urging immediate diplomatic engagement to prevent a broader regional war.
 
As both nations brace for potential follow-up attacks, the Middle East remains on edge. Iran’s promised retaliation could materialise within hours or days, and regional powers are now preparing for the prospect of a prolonged and bloody confrontation.
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