Background of the Conflict
The recent airstrike by Israel on Iran’s nuclear facilities, known as Operation “Rising Lion”, took place on the night of June 12 to 13, 2025. Israel targeted over 100 sites, including the nuclear facilities and the headquarters of the Revolutionary Guards in Iran.
Reactions and Escalation
In response, Iran launched an attack with over 100 drones on Israel, further heightening military tensions. British Prime Minister Keir Starmer called for de-escalation and diplomatic efforts, while Iraq closed its airspace.
Impact on the Markets
The attack led to a spike in oil prices as markets became concerned about a possible escalation of the conflict and disruptions to oil supply. This also resulted in losses in stock markets as uncertainty in the Middle East made investors nervous.
Long-Term Effects
The conflict could exacerbate geopolitical tensions in the Middle East and prompt the international community to seek diplomatic solutions to prevent further escalation.
Overall, this conflict highlights how quickly geopolitical tensions can have economic and political repercussions.