JERUSALEM / TEHRAN / WASHINGTON — In an unprecedented escalation that marks the beginning of a full-scale regional war, the Islamic Republic of Iran launched a massive direct military assault against Israel late last night, firing more than 300 explosive drones, cruise missiles, and ballistic missiles toward Israeli territory. The attack, codenamed “Operation True Promise,” is the first-ever direct military confrontation between the two arch-rivals after decades of shadow warfare.

Air raid sirens echoed across Jerusalem, Tel Aviv, Haifa, and the Negev desert as Israel’s famed Iron Dome, David’s Sling, and Arrow defense systems worked at maximum capacity to intercept incoming projectiles. According to the Israel Defense Forces (IDF), 99% of the drones and missiles were intercepted before reaching populated areas, with assistance from the United States, United Kingdom, France, and Jordanian air defenses. However, several ballistic missiles struck the Nevatim Airbase in southern Israel, causing minor structural damage. A seven-year-old girl was critically injured by shrapnel from an intercepted missile near Arad.

Iran’s justification: The Islamic Revolutionary Guard Corps (IRGC) said the strikes were in retaliation for the April 1, 2026 alleged Israeli airstrike on the Iranian consulate in Damascus, which killed seven senior IRGC commanders, including Brigadier General Mohammad Reza Zahedi. Tehran had vowed “unprecedented revenge” for the attack, which it called a violation of international law. In an official statement, Iran’s Supreme Leader Ayatollah Ali Khamenei declared: “The malicious Zionist entity will be punished. The operation is complete — but if Israel retaliates, our next response will be exponentially larger.”

Regional and global fallout: The attack has triggered fears of a wider war drawing in Hezbollah in Lebanon, Houthis in Yemen, and potentially the United States. President Joe Biden cut short his Delaware vacation to convene an emergency National Security Council meeting at the White House. In a televised address, Biden stated: “Our commitment to Israel’s security is ironclad. We helped defeat this unprecedented attack. We will coordinate with regional partners to de-escalate, but we will also defend American personnel and interests.” The Pentagon has moved additional destroyers equipped with Aegis missile defense to the Eastern Mediterranean.

Markets in turmoil: Global financial markets reacted with extreme volatility. Oil prices surged 8% to $92.40 per barrel, the highest since October 2023. Gold jumped 2.5% past $2,380 as investors fled to safe havens. The US dollar index strengthened 0.8%, while Asian and European stock futures plunged 2–3%. Bitcoin dropped 6% amid risk-off sentiment. The Tel Aviv Stock Exchange announced it would remain open but with heightened volatility controls. Analysts warn that a prolonged war could push oil to $120, reigniting global inflation.

Israel’s war cabinet: Prime Minister Benjamin Netanyahu convened the security cabinet in Tel Aviv’s Kirya military headquarters. According to local media, options on the table include direct strikes on Iranian nuclear facilities, targeting IRGC commanders inside Iran, or a calibrated retaliation via proxies. War Cabinet Minister Benny Gantz said: “We have built a defensive and offensive wall. The price Iran will pay will be clear and painful.”

International reactions: The United Nations Security Council held an emergency session at 3:00 AM New York time. Secretary-General António Guterres called for “maximum restraint” and warned of “a catastrophic escalation.” The UK, France, Germany, and Italy issued a joint statement condemning Iran’s attack and expressing full support for Israel’s self-defense. Meanwhile, Russia and China called for restraint but blamed the “unresolved Palestinian issue” and the Damascus consulate strike as root causes. Arab nations — Saudi Arabia, UAE, Egypt — urged de-escalation but also expressed concern over “regional destabilization.”

On the ground in Israel: Schools remain closed across the country, and Ben Gurion International Airport suspended operations for several hours but has since resumed limited flights. Airspace over Jordan, Iraq, Lebanon, and Syria was temporarily closed. Thousands of Israelis spent the night in bomb shelters. The IDF Home Front Command lifted restrictions in most areas but warned citizens to stay near protected spaces.

Hezbollah & Houthi threats: Shortly after Iran’s attack, Hezbollah in Lebanon fired a barrage of rockets at the Golan Heights, while Yemen’s Houthis launched long-range missiles toward southern Israel. Both were intercepted or fell in open areas. The IDF retaliated with airstrikes on Hezbollah targets in southern Lebanon. Analysts fear a multi-front war could ignite within days if the conflict widens.

What comes next? All eyes are now on Israel’s next move. Military analysts predict a retaliatory strike against Iranian soil within 48–72 hours, possibly targeting nuclear facilities or IRGC commanders. Diplomats in Vienna are working behind the scenes to prevent an uncontrollable spiral. Meanwhile, the G7 is set to hold an emergency virtual summit later today. The FX Universe will continue live updates as the situation evolves by the minute.

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