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Iran launches missile strikes on Tel Aviv and Haifa after Israeli attacks on key military sites. Here’s the latest on the Israel–Iran conflict escalation and how global markets and governments are responding.

Israel–Iran War Escalates: Missile Strikes Hit Tel Aviv and Haifa as Conflict Enters New Phase

TEL AVIV, ISRAEL — June 16, 2025:
The long-simmering tensions between Israel and Iran have erupted into direct warfare, with both sides engaging in high-impact military strikes across borders in what is being called the most volatile phase of Middle Eastern geopolitics in over a decade.

Key Developments:

  • Missile Strikes on Israeli Cities:
    On the evening of June 15, Iran launched over 50 ballistic missiles and long-range drones targeting Israeli urban centers. Strikes hit Tel Aviv, Haifa, and surrounding industrial zones, resulting in at least 87 confirmed fatalities and over 300 injured, according to Israel’s Ministry of Health.

  • Israeli Retaliation:
    In response, the Israeli Defense Forces (IDF) conducted precision airstrikes on Iranian missile depots, oil refineries, and military research facilities located in Tehran, Esfahan, and Bandar Abbas. Satellite imagery shows significant damage to multiple targets.

  • Airspace Closures:
    Airspace across Israel, Iran, Jordan, and parts of Iraq remains closed to commercial flights. El Al and Qatar Airways have suspended operations in affected regions. The FAA has issued a Level 4 security warning to all U.S. carriers.

Strategic Context:

  • This escalation follows Israel's covert airstrike last week on Iran’s Natanz nuclear facility, which reportedly disabled core uranium centrifuges.

  • Iran’s Revolutionary Guard had vowed retaliation, and Sunday’s strike marks the first overt Iranian military action on Israeli soil since the 1980s.

  • Israel invoked Article 5 of its Emergency Mobilization Protocol, calling up 70,000 reserve troops.

Global Political Response:

  • G7 Summit (Kananaskis, Canada):
    The ongoing G7 talks have pivoted sharply to focus on the Israel–Iran conflict. NATO and EU leaders have urged de-escalation while reaffirming Israel’s right to defend itself.

  • U.S. Government:
    President Kamala Harris has condemned the Iranian attack and deployed two carrier strike groups to the Persian Gulf, placing them on high readiness.

  • UN Security Council:
    An emergency UNSC meeting is underway, with draft resolutions circulating to initiate a ceasefire.

Market Reaction:

  • Oil prices surged: Brent crude crossed $103/barrel, its highest since 2022.

  • Defense stocks jumped, while airline and tech stocks dipped amid fears of wider regional conflict.

  • Gold prices and U.S. Treasuries rallied as investors shifted toward safe-haven assets.

Iran–Israel Military Snapshot (as of June 16, 2025):

Iran–Israel Military Snapshot (as of June 16, 2025):

What’s Next

  • Full-scale war possible: If Hezbollah enters the conflict or if U.S. assets are targeted, regional war risk increases.

  • Nuclear diplomacy collapse: Talks in Vienna have been suspended indefinitely.

  • Cyberwarfare watch: Multiple Israeli media sites were defaced overnight, allegedly by Iranian hackers.

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