Background of the Conflict
On June 13, 2025, Israel launched a comprehensive attack on Iran. The targets included nuclear facilities and military command centers. Israel’s Prime Minister Benjamin Netanyahu defended the attack as necessary to reduce the Iranian threat, as Iran had allegedly begun constructing nuclear weapons.
The attack specifically targeted the nuclear enrichment facility in Natanz, a central element of Iran’s nuclear program. Leading Iranian nuclear scientists and Iran’s ballistic missile program were also targeted.
Reactions and Consequences
Iranian Retaliation
Iran responded to the Israeli attacks with a massive retaliatory action, firing hundreds of ballistic missiles at Israel, resulting in injuries and significant property damage.
Market Reactions
The escalation of the conflict has led to massive uncertainties in global markets. The S&P 500 recorded a decline of more than one percent, reflecting concerns about regional instability and its possible consequences for the global economy.
International Reactions
The USA has urged Israel to exercise restraint in relation to the conflict, while parallel negotiations regarding Iran’s nuclear program are ongoing. President Donald Trump has continued to reaffirm his support for Israel, but also highlighted the importance of diplomatic negotiations.
The tense situation also affects the region, as the ongoing tensions between Israel and Iran could jeopardize overall regional stability. Netanyahu emphasized that Israel also considers the security of its regional partners.
Overall, the escalation is leading to heightened tensions in the Middle East, with notable impacts on global markets.