Tensions between Iran and Israel escalated further overnight with a significant Israeli airstrike targeting the Arak nuclear reactor, previously linked to plutonium production, in Iran. According to reports, multiple targets critical to the reactor’s functionality were successfully neutralized, indicating Israel’s determined effort to degrade Iran’s nuclear capabilities.
Further diplomatic engagements are expected shortly, with Araghchi meeting senior officials from France, Britain, Germany, and the European Union tomorrow. Reports also hint at a potential direct dialogue between Iran and former U.S. President Trump, marking a possible breakthrough toward diplomatic resolution.
Escalation Risk: Israel’s intensified military actions underline ongoing geopolitical risk, potentially increasing volatility across oil and commodity markets.
Energy Markets: Continued conflict could drive oil prices higher due to perceived risks of supply disruption.
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