The United States and Israel launched a massive, coordinated military strike across Iran, including the capital of Tehran, marking a major escalation in the regional conflict.
The attack, which included strikes on cities like Isfahan and Qom, led Israel to declare a state of emergency and close its airspace.
Analysts expect significant volatility and a sharp “war premium” to be priced into crude oil when markets open, as the Strait of Hormuz, a vital chokepoint for 20 per cent of the world’s oil supply, is now considered a war zone.
Tehran
Global energy markets are set to see significant volatility following a United States-Israel coordinated wave of military strikes across Iran early this morning. The attack, which targeted multiple cities including the capital of Tehran, marks a huge escalation in a regional conflict that has simmered for months.
Israeli Defense Minister Israel Katz confirmed the “preemptive strike” as a state of emergency was declared across Israel.
U.S. officials described the operation as “not a small strike,” involving attack planes from regional bases and aircraft carriers.
Explosions were reported in Isfahan, Qom, and Karaj, with witnesses in Tehran reporting thick smoke rising from districts housing government buildings.
Oil prices have been creeping up for weeks as geopolitical tensions intensified, but this morning’s military action is expected to send them higher.
On Friday, crude prices rose more than 2% as traders considered the likelihood of a strike after the meeting between Iran and the U.S. in Switzerland failed to produce any meaningful progress.
The strikes come during a period of extreme domestic instability within Iran. Human rights groups estimate that over 5,000 protesters have been killed in a recent government crackdown.
President Donald Trump cited both the nuclear program and the treatment of protesters as justifications for the assault.
Anticipating the attack, Iranian authorities reportedly spent the last several days rushing to ship as much crude oil as possible out of the country.
Satellite imagery and shipping data indicated an unusual surge in tanker activity at Iranian terminals throughout the week.
Tehran sought to maximise its revenue and clear storage facilities before the potential destruction of infrastructure or the implementation of even stricter maritime blockades.
This is the second time the U.S. has struck Iranian soil in less than a year. In June 2025, American warplanes bombed three nuclear sites, including the Fordo enrichment facility. While that conflict ended in a brief ceasefire, the current operation appears far more extensive.
Israel has closed its airspace and suspended all civilian flights. The Home Front Command has ordered the public to cease non-essential activities, prohibiting gatherings and closing schools.
In Iran, the strikes occurred on a Saturday morning, the start of the workweek, leading to reports of chaos as millions were already in offices and classrooms.
With the Strait of Hormuz, a vital chokepoint for 20 per cent of the world’s oil supply, now effectively a war zone, analysts expect a sharp “war premium” to be priced into crude at the Monday market open.
By Michael Kern
