Israel and Iran trade heavy blows for fourth straight day; IDF targets weapon production sites
An explosion is seen during a missile attack in Tel Aviv, Israel, Sunday
The Middle East stands on the brink of wider conflict as Israel and Iran continued exchange of missile strikes early Monday, ignoring global calls for de-escalation.
Israel's most aggressive military campaign to date inside Iran has targeted key nuclear and energy sites, while Iran has responded with hundreds of missiles that breached Israeli defenses and caused mounting civilian casualties.
The death toll has surged on both sides, with over 230 confirmed dead in Iran and at least 14 in Israel. Talks on Iran's nuclear program with the US have been suspended, and both nations appear locked into a spiraling confrontation with regional and global repercussions.
Israel army warns of new missile salvo from Iran
Israel's armed forces issued an alert on Monday about a fresh wave of missiles approaching from Iran, while AFP reporters documented powerful blasts in Jerusalem and fires near the coastal area of Haifa.
"A short while ago, the IDF identified missiles launched from Iran toward the territory of the State of Israel," the army posted on Telegram, using the acronym for its official name.
The military stated that its aerial defence systems were actively working to counter the threat and instructed residents to seek shelter in protected areas until further instructions were provided.
Loud explosions heard in Jerusalem
Powerful blasts echoed across Jerusalem in the early hours of Monday, as reported by an AFP journalist.
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The incident occurred moments after the Israeli military issued an alert about incoming missiles from Iran, instructing citizens to seek shelter and await further instructions.
Israeli airstrikes kill hundreds in Iran, destroy key infrastructure
Iranian officials said Israeli airstrikes have killed 224 people and injured 1,277 since Friday, many of them civilians. Israel's strikes hit the Iranian Defense Ministry, military factories, missile launch sites, and major energy facilities—including the South Pars gas field and the Shahran oil depot.
Iranian state media reported massive fires and damage to residential buildings and government offices. The death toll is likely higher, with independent rights groups estimating over 400 killed.
Iran fires 270 missiles at Israel; Civilian areas, oil facilities hit
Iran launched a barrage of over 270 missiles at Israel, with 22 evading the country's air defense systems. Strikes hit residential areas in Bat Yam, Tamra, and Rehovot, killing 14 and injuring nearly 390.
A high-rise in Bat Yam was reduced to rubble, while an oil refinery in Haifa and the Weizmann Institute of Science also sustained damage. Air raid sirens rang out across Tel Aviv and Haifa as thousands rushed to shelters.
Oil prices rise further
Oil prices continued their upward trend on Monday as Israel and Iran exchanged missile strikes for the fourth consecutive day, with both nations threatening additional attacks, raising concerns about a prolonged conflict that could trigger inflationary pressures.
The price of gold approached its historic peak due to increased demand for secure investments. Whilst equity markets experienced further declines, the losses remained contained due to optimism that the conflict would not expand across the Middle East region.
Investors focused on upcoming central bank meetings this week, particularly the US Federal Reserve and Bank of Japan sessions, alongside discussions with Washington regarding potential alternatives to Donald Trump's substantial tariffs.
Israel's unexpected attack on Iranian military and nuclear facilities on Friday, which resulted in the deaths of senior commanders and scientists, caused crude prices to surge up to 13 percent, driven by concerns about regional supply disruptions.
Experts cautioned that the price increase could trigger a global inflation resurgence, potentially undermining ongoing efforts by governments and central banks to maintain price stability, whilst raising concerns about impacts on already vulnerable economies.
"The knock-on impact of higher energy prices is that they will slow growth and cause headline inflation to rise," said Tony Sycamore, a market analyst at IG.
Primary oil contracts increased by more than one percent during early Asian trading hours.
Trump blocked Israeli plan to assassinate Khamenei, says US official
A senior US official, quoted by AP, claimed that President Donald Trump intervened to stop an Israeli plan to assassinate Iran's Supreme Leader Ayatollah Ali Khamenei.
The move, reportedly shelved due to fears of uncontrolled escalation, underscores how far Israel was prepared to go in its campaign against Iran's leadership and nuclear infrastructure.
Nuclear Facilities in Natanz and Isfahan damaged; Talks suspended
Planned nuclear negotiations in Oman between the US and Iran were canceled after Israeli strikes on Iran's Natanz and Isfahan nuclear sites. Satellite imagery and IAEA inspections confirmed major damage to key support buildings, including a uranium-conversion facility.
While no radiation was released, officials said it could take months to restore operations. The attacks mark a major blow to Iran's nuclear capacity and to diplomatic efforts.
Tehran turns Mosques, metro stations into bomb shelters
Panic spread in Tehran as Israeli missiles struck civilian districts and key infrastructure. Long queues formed at fuel stations and many attempted to flee the capital. In response, Iranian authorities began converting metro stations and mosques into shelters.
Health officials reported that 90 per cent of the dead were civilians, while images of bloodied survivors and collapsed buildings circulated widely on state media.
Netanyahu signals regime change intentions; Iran issues warning
Israeli Prime Minister Benjamin Netanyahu suggested that regime change in Iran could be a consequence of the conflict. He accused Tehran of seeking to transfer nuclear arms to Houthi rebels, though no evidence was offered.
Iranian Foreign Minister Abbas Araghchi warned that Iranian retaliation would cease only if Israeli strikes stopped, signaling no immediate end to the hostilities.
Gaza War adds to regional volatility as global leaders call for calm
With Israel's war against Hamas still ongoing in Gaza, the multi-front crisis risks plunging the entire region into chaos. Iran's backing of Palestinian and Lebanese militant groups adds to fears of escalation beyond Israel and Iran. Despite international appeals for restraint, neither side has signaled willingness to step back, raising concerns that the conflict may soon draw in additional regional actors.
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