Israel’s Iron Dome Anti-Missile System Intercepts Rockets from Gaza Strip Amid Rising Tensions with Iran

Israel’s Iron Dome intercepts rockets launched from Gaza Strip

Israel Considers Direct Strikes on Iran

“Right now, they certainly are seriously considering direct strikes on Iran, because that is the clearest path back to deterrence,” according to Ryan Bohl, senior Middle East and North Africa analyst at risk intelligence platform Rane Network. Israel’s strategic approach, however, should focus on maintaining a delicate balance. Their aim is to intensify the shadow war with Iran covertly rather than seeking an overt conflict.

US Position and Israel’s Response

While President Biden has pledged unwavering commitment to Israel’s security against Iranian threats, he has conveyed to Prime Minister Benjamin Netanyahu that the US will not engage in offensive operations against Iran. The US objective is combatting the escalating situation, promoting de-escalation, and avoiding further provocation.

From Covert to Overt: Israel’s Response

Ahead of a war cabinet meeting, Israel’s centrist minister Benny Gantz asserted his determination to construct a regional coalition and hold Iran accountable for their actions. Israel must carefully plan its moves to avoid creating an undesirable confrontation with Iran, seeking opportunities to escalate their shadow war with heightened intensity.

The Israel-Iran Conflict

The ongoing conflict between Israel and Iran exhibits a long-standing history of antagonism. Iran’s backing of opposing groups, including Palestinian militant group Hamas and Lebanon’s Hezbollah, has contributed to years of proxy war. The situation has deteriorated, with Iran allegedly launching an attack on Israel in response to an earlier Israeli strike on its embassy in Syria. Beyond Gaza, tensions persist in various regional conflicts involving Yemen and Syria.

The Market Implications and Future Scenarios

Analysts foresee a potential escalation in Israeli actions against Iran’s nuclear capacity, with Israel exercising caution in light of its supporters’ interests, including the United States. While an extreme retaliation remains uncertain at present, potential realities in the next year or so have not been disregarded. Expectations of a market meltdown loom on the possibility of a heavy strike on Iran’s nuclear infrastructure.

Beneath the Surface: Economic Consequences

Iran aims to disrupt the global economy sufficiently to strategize diplomatic pressure from the United States on Israel for de-escalation. Recent events, including the seizure of an Israeli-linked container ship in the critical Strait of Hormuz, signify Iran’s intent to perpetuate harassment. Iran states that its recent attack on Israel has concluded, underlining its desire to avoid further conflict while posing a stern warning should Israel repeat its perceived mistakes.

— Sumathi Bala