Tehran: In a dramatic escalation of Middle East tensions, Israel has launched direct airstrikes on Tehran, the capital of Iran, under a military campaign dubbed Operation Lion’s Country.

The operation follows earlier strikes on Iranian nuclear sites under the parallel mission Strength of a Lion. Israeli Prime Minister Benjamin Netanyahu stated the campaign would continue “as long as it takes.”

The strike has had immediate repercussions on the global economy. West Texas Intermediate (WTI) oil futures surged 5.91% to $71.99 per barrel, while Brent crude rose 5.48% to $73.16. Analysts attribute the sharp increase to fears that Iran may retaliate by closing the Strait of Hormuz, a vital maritime oil chokepoint through which 30% of global oil supply passes. JPMorgan has warned that a closure could push prices beyond $120 per barrel.

Financial markets responded with volatility. US stock index futures dropped significantly — Dow futures fell 1.45%, S&P 500 by 1.63%, and Nasdaq by 1.84%. The cryptocurrency market experienced a more dramatic slide. Bitcoin fell 4.31% to $103,868 — its first drop below $105,000 in five days — and Ethereum plunged 8.75% to $2,528. Other digital assets like Solana and Dogecoin saw losses exceeding 10%.

In contrast, demand for traditional safe havens spiked. Gold, the Japanese yen, and the Swiss franc gained strength in the wake of the airstrike, as investors sought refuge from geopolitical risk.

The Biden administration responded by evacuating non-essential personnel from embassies near Iran. President Donald Trump, when asked about the strike and the evacuation, reiterated, “Iran can’t have a nuclear weapon. Very simple.”

US Special Envoy Steve Witkoff called Iran’s nuclear ambitions an existential threat not just to Israel, but also to the United States. Meanwhile, Iranian officials confirmed to The New York Times that high-level security meetings had been held in Tehran. Military leaders are reportedly preparing retaliatory measures, including the potential launch of hundreds of ballistic missiles targeting Israel.

The airstrike marks one of the most volatile moments in the region since the US invasion of Iraq, with implications for energy security, global markets, and the balance of power in the Middle East.