🛢️Oil Gains 7% After Israeli Attack on Iran

Israel attacked nuclear and military targets within Iran, extremely escalating the situation in the Middle East.

In the early hours of June 13, 2025, Israel orchestrated a broad military operation targeting numerous strategic sites within Iran. These included critical uranium enrichment facilities, advanced missile production plants, and established military bases. The operation also reportedly targeted the residences and command centres of senior Iranian military commanders and nuclear scientists. Sources indicate approximately 200 fighter jets participated in the coordinated assault, striking around 100 designated targets.

The aerial campaign reportedly resulted in significant casualties, including the deaths of General Hossein Salami, Commander of the Islamic Revolutionary Guard Corps, and General Mohammad Bagheri, Chief of Staff of the General Staff, alongside two prominent nuclear scientists. The strikes also impacted residential areas, raising concerns about civilian casualties.

Tehran's Supreme Leader swiftly pledged a severe reprisal. In response, Israel declared a state of emergency, shuttering educational institutions and airports, and issuing public warnings of potential retaliatory rocket and drone attacks from Iran. Reports from Israel indicate an initial wave of Iranian drone incursions. Iran, acknowledging defensive measures, cryptically stated that "the world will know why Iran was enriching uranium," a declaration widely interpreted as a veiled reference to its nuclear ambitions.

Washington swiftly distanced itself from the operation, urging de-escalation while underscoring the imperative to safeguard its regional assets. The Israeli offensive has undeniably exacerbated regional instability and effectively extinguished the fragile prospects for the resumption of nuclear talks with Iran, discussions which had been scheduled for the upcoming Sunday. Iran had previously warned that any attack on its nuclear infrastructure would provoke retaliatory strikes against American positions in the region.

Israel justified its pre-emptive strikes by citing intelligence indicating accelerated progress in Iran's nuclear program and the imminent threat of nuclear weapon development. The geopolitical landscape remains acutely volatile, with international observers expressing grave concerns over potential further escalation.

Market Reactions: Strong gains on oil and gold

Global financial markets reacted sharply to the escalating geopolitical risk. The most pronounced movements were observed in the oil market, where benchmark WTI crude futures initially surged by approximately 10%. As of reporting, oil prices have consolidated their gains, trading up 7% and testing the $72 per barrel mark.

Concurrently, gold, a traditional safe-haven asset, saw a more than 1% increase, having previously tested $3440 per ounce. The sharp uptick in these commodities underscores investor apprehension and the perceived heightening of supply risks in the Middle East.