US forces began combat operations. President Donald Trump said Saturday morning that American military units started major operations inside Iran, coming right after Israel hit Tehran with missile strikes.
The move ramps up tensions that were already pretty wild in the region. Israel fired missiles at what sources called “strategic sites” across Iran, and now the US jumped in with its own military response. Markets are going to go crazy when they open Monday – traders always run to gold and bonds when this kind of stuff happens. The forex market’s probably going to see some serious swings as people dump risky positions fast.
Pentagon brass confirmed the operations.
US military officials said American forces are now hitting multiple Iranian military targets, but they won’t say much about specifics. Initial reports from defense sources talk about “various operations” aimed at taking out Iranian military capabilities. The details are pretty murky right now, but it’s clear this isn’t some small-scale thing.
Iran’s leadership fired back hard, calling the attacks illegal and promising to hit back. Iranian officials reached out to allies asking them to condemn what they’re calling violations of international law. Foreign Minister Hossein Amir-Abdollahian said in a statement: “These aggressive acts will not go unanswered, and we call on the international community to take immediate action.”
The UN Security Council’s scrambling to set up an emergency meeting. Secretary-General António Guterres called for “immediate de-escalation” and said the organization is monitoring the situation closely. But with the US and Israel on one side and Iran on the other, it’s not really clear what the UN can actually do here.
European allies are split on supporting the US move. Some countries like France and Germany are pushing for restraint, while others are backing the American and Israeli actions. UK Prime Minister Rishi Sunak said: “We support our allies’ right to defend themselves against Iranian aggression.”
Oil prices jumped immediately after Trump’s announcement. Crude spiked about 8% in early trading, and analysts think it could go higher if the fighting continues. Iran pumps a lot of oil, and any real conflict there could mess up supply chains across the Middle East. Energy traders are already positioning for more volatility. More on this topic: Trump Bans Anthropic Tech from All.
Diplomatic talks seem pretty much dead right now. There’s no word about any back-channel communications between Washington and Tehran, which probably means this thing could drag on for a while.
The White House didn’t give many details beyond Trump’s initial statement. Press Secretary Karine Jean-Pierre said more information would come “when operationally appropriate,” but that’s basically Washington speak for “we’re not telling you anything else right now.”
Morgan Stanley analysts are warning about currency market chaos when trading opens Monday. They think the dollar could see big swings against the euro and yen, with spillover effects hitting emerging market currencies too. “We’re looking at potential volatility not seen since the 2020 pandemic selloff,” said chief strategist Michael Wilson.
Secretary of State Mike Pompeo’s flying to Brussels next week to meet with NATO allies. The agenda’s focused on getting European support for whatever comes next in the Middle East. That meeting’s going to be crucial because it’ll show how much backup the US can count on from Europe.
Iran’s Revolutionary Guard went on high alert after the attacks started. Reports from Tehran say military units are mobilizing across the country, with commanders telling troops to prepare for “extended operations.” The Guard’s aerospace division, which controls Iran’s missile program, is reportedly at maximum readiness. More on this topic: Dollar Index Drops to 97.70 as.
Humanitarian groups are freaking out about civilian casualties. The International Red Cross put out a statement urging all sides to follow international humanitarian laws and protect non-combatants. “We’re deeply concerned about the potential impact on innocent civilians caught in this escalation,” said Red Cross spokesperson Mirjana Spoljaric.
Airlines started changing flight paths to avoid Iranian airspace. British Airways and Lufthansa both announced route adjustments after the FAA warned about risks to commercial flights in the region. Ticket prices for Middle East routes are already going up because of the longer flight paths.
Russian Foreign Minister Sergey Lavrov called for immediate de-escalation and offered to mediate talks. Speaking from Moscow, Lavrov said: “Russia stands ready to facilitate dialogue between all parties to prevent further escalation.” But with Russia being Iran’s ally, it’s unclear how much influence Moscow actually has here.
Asian markets tanked Monday morning. The Shanghai Composite dropped 2% in early trading as investors worried about oil supply disruptions. Asian economies depend heavily on Middle East energy imports, so any conflict there hits them hard. Nomura Securities already cut their growth forecasts for the region.
Congress is split on Trump’s move. Senator Lindsey Graham backed the president, saying: “Iran has been asking for this response for years.” But other lawmakers from both parties are worried about getting stuck in another long war. Congressional hearings on the military action are expected within weeks.
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