Markets Wary As Israel Vows To Respond

Despite significant pressure for restraint, Israel has apparently decided on a “forceful” response but in a way that won’t escalate tensions in the region as it is designed to avoid casualties. It may include a cyber attack or a strike on a target in Tehran, according to the Washington Post. With Iran promising to retaliate “within seconds” though, the risks are still very elevated and oil markets wary.

• Israel’s war cabinet said that an attack of that magnitude can’t go unanswered with defence minister Gallant expressing that “Israel won’t accept an equation in which Iran responds with a direct attack every time Israel strikes targets in Syria”. He also told US defence minister Austin that Israel has no choice given Iran’s use of missiles.
• The timing of a response is unclear but war cabinet minister Gantz already said that it will be when the time is right.
• The UN will halt inspections of Iranian nuclear facilities given the risk of an Israeli strike, according to The Australian.
• Iran has been clear with its threats saying that any attacks on its people or assets would be met with an immediate response rather than waiting. The Speaker of the Iranian Parliament’s National Security Commission Amouei warned it would use “a weapon it has never before used”.
• Iran says that it is going to be tough on Israel but as it achieved its goal on the weekend, it views the issue “concluded” unless Israel retaliates.
• China spoke with Iran and has agreed that Iran’s response was limited and it has the right to self-defence given the attack on its embassy. It believes that Iran will avoid “further instability”.