Iran Vows 'Ferocious' Response After Airstrike

Global markets reacted immediately to the escalating conflict, with Brent crude oil futures poised to jump as high as $90 a barrel from Friday's $67. In anticipation of market openings, Dow futures sank 622 points in extended trading, while safe-haven assets surged, with gold climbing 2.25% to nearly $5,400 an ounce. Iran's Islamic Revolutionary Guard Corps reportedly warned that no ships would be allowed to pass through the Strait of Hormuz, a critical chokepoint for about 20% of the world's oil supply. In response, major shipping carriers have halted vessel transits, trapping roughly 170 container ships inside the strait and forcing others to reroute away from the region. The joint U.S.-Israeli mission, named "Operation Epic Fury," was described by officials as a preemptive strike to dismantle Iran's security apparatus and eliminate nuclear and missile programs. The attack followed the collapse of nuclear disarmament talks and was framed by Israeli Prime Minister Benjamin Netanyahu as an operation to remove an "existential threat." The daytime airstrikes involved approximately 200 fighter jets that dropped hundreds of munitions on around 500 targets across 24 of Iran's 31 provinces. Beyond the Supreme Leader, intelligence sources report that around 40 other senior Iranian officials were killed, including the commander of the Islamic Revolutionary Guard Corps, Maj. Gen. Mohammad Pakpour. The operation follows a recent history of rising tensions, including the U.S. withdrawal from the Iran nuclear deal in 2018 and a smaller-scale U.S. operation in June 2025, dubbed "Midnight Hammer," which also targeted Iran's nuclear infrastructure. This latest strike, however, represents a significant escalation aimed directly at regime change. The conflict's ripple effects extend beyond energy prices, causing the cost of insuring ships in the region to spike. Economists warn that a prolonged closure of the Strait of Hormuz could push oil prices over $100 a barrel, potentially adding up to 0.7 percentage points to global inflation and exacerbating the cost of living crisis in developed economies.