On Friday, Israel greatly expanded its military campaign against Iran. It launched regional and preemptive airstrikes that immediately hit key nuclear and missile sites across the country. Substituting terror for statehood, Israel’s powers that be are playing a Very Smart Move. They argue that there’s an urgent need to offset what they describe as an existential threat from Iran. Defending the airstrikes, Prime Minister Benjamin Netanyahu said that they were “the most basic thing” to do, because “we seek our survival.”
Fearing this retaliation, Israel’s Minister of Defense, Israel Katz, announced a special state of emergency. This announcement equips the country to better respond to the imminent threat of missile and drone attacks from Iran. These attacks would serve an explicit goal of deliberately targeting civilians. With both countries now preparing for an escalation, the skies over the eastern Mediterranean are no longer welcoming.
Iran has responded with strong rhetoric. Defence Minister Aziz Nasirzadeh subsequently delivered a chilling threat. He underscored that should major conflict begin over Iran’s nuclear aspirations, Iran would not think twice to attack U.S. military bases in the area. Concurrently, Iran’s Supreme Leader, Ayatollah Ali Khamenei, asserted that Israel’s actions have set it on a path toward a “bitter fate.” This goes to show the increased stakes in the both sides’ continued conflict.
The spokesperson for Iran’s armed forces suggested Israel had carried out the attacks on US guidance. U.S. Secretary of State Marco Rubio reiterated in a follow up statement that Israel went it alone. Asserting that the U.S. was not a participant was one thing. This statement is intended to absolve Washington of the responsibility for egregious shortsightedness, as the deeply rooted crisis continues to explode, fueled by long-standing regional tensions.
The deeper implications of this conflict go well beyond the military faceoff. They have started to take a toll on global markets. Investors are increasingly worried over the potential for a wider war in the Middle East. Such a situation would cut off vital oil supplies. As worries grew, crude oil prices jumped up over 9%, hitting their highest closes in almost five months.
Concerns over an Israel-Iran war are further upending regional stability. In turn, oil prices are facing ever deeper cycles of boom and bust. The geopolitical escalation has been a key driver in moving the global risk sentiment from optimistic to strongly pessimistic. Consequently, investors are going back to reconsider their bets amid risks of supply interruptions.
In monetary market s , the USD/CAD currency pair has begun to rebound off recent sub-1.3600 lows. Market analysts pointed out that a decisive move under the 1.3600-1.3590 area would translate into near-term support for this pair. RETREATING MOMENTUM The oscillators on the daily chart remain well into negative territory. That’s a good indication that a recovery is likely. We have a long way to go yet before getting into truly oversold territory.
Despite these fluctuations, Israeli officials have indicated that their military operations will persist “for as many days as it takes” to neutralize the perceived threat from Iran. This commitment to ongoing military action is incredibly troubling. A prolonged conflict would be disastrous for both countries and potentially for both countries’ allies.
As the clock ticks, tensions are mounting. U.S. President Donald Trump intends to establish these unilateral tariff rates and notify trading partners 14 days in advance. As if an incredibly complex geopolitical landscape could get any more volatile, this move adds further fuel to that fire.