Oil jumps 12pc, stocks sink as Israel strikes Iran, stoking Middle East war fears
HONG KONG, June 13 — Oil prices soared more than 12 per cent and stocks sank today after Israel launched 'preemptive' strikes on Iranian nuclear and military sites and warned of more to come, stoking fears of a full-blown war.
Investors ran for the hills on news of the attacks and a warning from Tehran that its regional foe faced a 'bitter and painful' fate, while US President Donald Trump said a 'massive conflict' in the region was possible.
While Tel Aviv said it had struck military and nuclear targets, Iran said residential buildings had been hit.
Israeli Prime Minister Benjamin Netanyahu said in a video statement: 'This operation will continue for as many days as it takes to remove this threat.
'We struck at the heart of Iran's nuclear enrichment programme. We targeted Iran's main enrichment facility at Natanz. We also struck at the heart of Iran's ballistic missile programme,' he added.
Nuclear scientists 'working on the Iranian bomb' had also been hit, he said.
In Tehran, supreme leader Ayatollah Ali Khamenei warned Israel would suffer severe consequences, issuing a statement that said: 'With this crime, the Zionist regime has set itself for a bitter and painful fate and it will definitely receive it.'
Israeli Defence Minister Israel Katz had earlier cautioned that 'a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future'.
Trump previously warned that an Israeli attack could be on the cards, telling reporters at the White House: 'I don't want to say imminent, but it looks like it's something that could very well happen.'
The US leader said he believed a 'pretty good' deal on Iran's nuclear programme was 'fairly close', but that an Israeli strike on the country could wreck the chances of an agreement.
A US official said there had been no US involvement in the operation.
Still, there are worries the United States could be sucked into the crisis after Iran threatened this week to target US military bases in the region if a regional conflict broke out.
Both main oil contracts, which had rallied earlier in the week on rising tensions, spiked more than 12 per cent — hitting levels not seen since January — amid fears about supplies of the commodity.
The rush from risk assets to safe havens saw equity markets across Asia tumble and bonds rally with gold, which popped above US$3,400 (RM14,444) an ounce. US and European equity futures were deep in the red.
'The Middle East powder keg just blew the lid off global markets,' said Stephen Innes at SPI Asset Management.
'Equity futures are plummeting. Bond yields are sinking. Gold and oil are skyrocketing,' he added.
'Brent crude futures are racing toward the mid-US$70s range — but if the Strait of Hormuz, which accounts for 20 per cent of global oil flows, finds itself in the blast radius, you can add another US$15 to the bid.
'If Iran holds back, we get a relief bounce. But if missiles start raining down on Tel Aviv or Tehran retaliates with real teeth, we're staring down a scenario that could redefine the macro narrative for the rest of 2025.'
Banking giant JPMorgan Chase had warned just this week that prices could top US$130 if the worst-case scenario developed.
Market sentiment had already been low after Trump sounded his trade war klaxon again by saying he would be sending letters within the next two weeks to other countries' governments to announce unilateral levies on their exports to the United States.
The 'take it or leave it' deal spurred fears he would reimpose the eye-watering tolls announced on April 2 that tanked markets before he announced a 90-day pause. — AFP
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Malay Mail
41 minutes ago
- Malay Mail
Israel's Iran strikes hint at bigger goal: Regime change
JERUSALEM, June 14 — Israel's surprise attack on Iran had an obvious goal of sharply disrupting Tehran's nuclear programme and lengthening the time it would need to develop an atomic weapon. But the scale of the attacks, Israel's choice of targets, and its politicians' own words suggest another, longer-term objective: toppling the regime itself. The strikes early on Friday hit not just Iran's nuclear facilities and missile factories but also key figures in the country's military chain of command and its nuclear scientists, blows that appear aimed at diminishing Iran's credibility both at home and among its allies in the region — factors that could destabilise the Iranian leadership, experts said. 'One assumes that one of the reasons that Israel is doing that is that they're hoping to see regime change,' said Michael Singh of the Washington Institute for Near East Policy and a former senior official under President George W. Bush. 'It would like to see the people of Iran rise up,' he said, adding that the limited civilian casualties in the initial round of attacks also spoke to a broader aim. In a video address shortly after Israeli fighter jets began striking Iranian nuclear facilities and air defence systems, Israel's prime minister, Benjamin Netanyahu, appealed to the Iranian people directly. Israel's actions against Iran's ally Hezbollah had led to a new government in Lebanon and the collapse of the Assad regime in Syria, he said. The Iranian people had an opportunity too: 'I believe that the day of your liberation is near. And when that happens, the great friendship between our two ancient peoples will flourish once again,' said Netanyahu. But despite the damage inflicted by the unprecedented Israeli attack, decades of enmity toward Israel — not only among Iran's rulers but its majority-Shi'ite population — raises questions about the prospect for fomenting enough public support to oust an entrenched theocratic leadership in Tehran backed by loyal security forces. Singh cautioned that no one knows what conditions would be required for an opposition to coalesce in Iran. Friday's assault was the first phase of what Israel said would be a prolonged operation. Experts said they expected Israel would continue to go after key Iranian nuclear infrastructure to delay Tehran's march to a nuclear bomb — even if Israel on its own does not have the capability to eliminate Iran's nuclear programme. Iran says its nuclear programme is for civilian purposes only. The UN nuclear watchdog concluded this week that it was in violation of its obligations under the global non-proliferation treaty. Israel's first salvoes targeted senior figures in Iran's military and scientific establishment, took out much of the country's air defence system and destroyed the above-ground enrichment plant at Iran's nuclear site. 'As a democratic country, the State of Israel believes that it is up to the people of a country to shape their national politics, and choose their government,' the Israeli embassy in Washington told Reuters. 'The future of Iran can only be determined by the Iranian people.' Netanyahu has called for a change in Iran's government, including in September. US President Donald Trump's administration, while acquiescing to Israel's strikes and helping its close ally fend off Iran's retaliatory missile barrage, has given no indication that it seeks regime change in Tehran. The White House and Iran's mission to the United Nations in New York also did not immediately respond to requests for comment on the matter. Ending nuclear programme beyond reach, for now Israel has much further to go if it is to dismantle Iran's nuclear facilities, and military analysts have always said it might be impossible to totally disable the well-fortified sites dotted around Iran. The Israeli government has also cautioned that Iran's nuclear programme could not be entirely destroyed by means of a military campaign. 'There's no way to destroy a nuclear programme by military means,' Israel's National Security Adviser Tzachi Hanegbi told Israel's Channel 13 TV. The military campaign could, however, create conditions for a deal with the United States that would thwart the nuclear programme. Analysts also remain sceptical that Israel will have the munitions needed to obliterate Iran's nuclear project on its own. 'Israel probably cannot take out completely the nuclear project on its own without the American participation,' Sima Shine, a former chief Mossad analyst and now a researcher at Israel's Institute for National Security Studies, told reporters on Friday. While setting back Tehran's nuclear programme would have value for Israel, the hope for regime change could explain why Israel went after so many senior military figures, potentially throwing the Iranian security establishment into confusion and chaos. 'These people were very vital, very knowledgeable, many years in their jobs, and they were a very important component of the stability of the regime, specifically the security stability of the regime,' said Shine. 'In the ideal world, Israel would prefer to see a change of regime, no question about that,' she said. But such a change would come with risk, said Jonathan Panikoff, a former US deputy national intelligence officer for the Middle East who is now at the Atlantic Council. If Israel succeeds in removing Iran's leadership, there is no guarantee the successor that emerges would not be even more hardline in pursuit of conflict with Israel. 'For years, many in Israel have insisted that regime change in Iran would prompt a new and better day - that nothing could be worse than the current theocratic regime,' Panikoff said. 'But history tells us it can always be worse.' — Reuters
The Star
an hour ago
- The Star
Israel warns 'Tehran will burn' as Iran fires drones and missiles in response to Israeli strikes
DUBAI, United Arab Emirates (AP) - Israel's defence minister warned Saturday that "Tehran will burn' if Iran continues firing missiles, as the two countries traded blows a day after Israel launched a blistering surprise attack on Iranian nuclear and military sites, killing a number of top generals. Israel's military said the strikes had also killed nine senior scientists and experts involved in Iran's nuclear program. Iran's UNb ambassador said 78 people were killed and more than 320 wounded in the attacks. Iran retaliated by launching waves of drones and ballistic missiles at Israel, where explosions lit the night skies over Jerusalem and Tel Aviv and shook buildings. The Israeli military urged civilians, already rattled by 20 months of war in Gaza sparked by Hamas' Oct. 7 attack, to head to shelter for hours. Health officials said three people were killed and dozens wounded. Speaking after an assessment meeting with the army's chief of staff, Defense Minister Israel Katz said that Iran will pay a heavy price for harming Israeli citizens. "If (Iranian Supreme leader Ayatollah Ali) Khamenei continues to fire missiles at the Israeli home front - Tehran will burn,' Katz said. Prime Minister Benjamin Netanyahu said Friday that his objective was to eliminate any Iranian threat to Israel, but he also urged Iranians to rise up against their leaders. Israel would welcome the government's overthrow even if it is not actively seeking it. Israel's strikes also put further talks between the United States and Iran over a nuclear accord into doubt before they were set to meet Sunday in Oman. Iran's Foreign Ministry spokesman Esmail Baghaei called further nuclear talks with the United States "meaningless' after Israeli strikes on his country, state television said. However, he stopped short of saying the talks were canceled. The Mizan news agency, which is run by Iran's judiciary, quoted him as saying: "It is still not clear what we decide about Sunday's talks.' Khamenei said in a recorded message Friday: "We will not allow them to escape safely from this great crime they committed.' Iran launched waves of missiles at Israel late Friday and early Saturday, and Iranians awoke to state television airing repeated clips of strikes on Israel, as well as videos of people cheering and handing out sweets. The Iranian attacks killed at least three people and wounded around 70, mostly in and around Tel Aviv, according to two local hospitals. One missile severely damaged at least four homes in the nearby city of Rishon Lezion, according to first responders. The Israeli military said seven soldiers were lightly wounded when a missile hit central Israel, without specifying where the impact occurred. It was the first report of Israeli military casualties since the initial Israeli strikes. U.S. ground-based air defense systems in the region were helping to shoot down Iranian missiles, said a U.S. official who spoke on condition of anonymity to discuss the measures. In Ramat Gan, east of Tel Aviv, an Associated Press journalist saw burned-out cars and at least three damaged houses, including one where the front was nearly entirely torn away. Residents of a central Israeli city that was hit Friday night told the AP the explosion was so powerful it shook their shelter door open. "We thought, that's it, the house is gone, and in fact half of the house was gone, it fell apart,' said Moshe Shani. Israeli police said debris from the interception of drones and missiles fell in dozens of locations in northern Israel, causing damage and fires but no injuries. Israel's main international airport said Saturday it will remain closed until further notice. Iranian state television reported online that air defenses were firing in the cities of Khorramabad, Kermanshah and Tabriz, signaling the start of what could be a new Israeli attack. Footage from Tabriz showed black smoke rising from the city. An Israeli military official said Saturday that the military was poised to carry out more strikes in Iran, saying, "This is not over.' He spoke on condition of anonymity in line with official procedures. Overnight, the sound of explosions and Iranian air defense systems firing at targets echoed across central Tehran. Iran's semiofficial Tasnim news agency reported a fire at Tehran's Mehrabad International Airport. The Israeli military said it carried out overnight strikes on dozens of targets, including air defenses, "in the area of Tehran.' Israel's ongoing airstrikes and Iran's retaliation raised concerns about all-out war between the countries and propelled the region, already on edge, into even greater upheaval. Israel's 20-month-long war with Gaza shows no signs of ending. At least 27 people were killed by Israeli fire in Gaza overnight, according to local hospitals. Countries in the region condemned Israel's attack, while leaders around the globe called for immediate deescalation from both sides. Among the key sites Israel attacked was Iran'smain nuclear enrichment facility in Natanz, where black smoke could be seen rising into the air. Israel said it also struck a nuclear research facility in Isfahan, and said it destroyed dozens of radar installations and surface-to-air missile launchers in western Iran. Iran confirmed the strike at Isfahan. The Israeli military official said that according to the army's initial assessment "it will take much more than a few weeks' for Iran to repair the damage to the Natanz and Isfahan nuclear sites. The official said the army had "concrete intelligence that production in Isfahan was for military purposes.' Israel denied it had struck the nuclear enrichment facility in Fordo, about 100 kilometers (60 miles) southeast of Tehran, after an Iranian news outlet close to the government reported the sound of explosions near the site. UN nuclear chief Rafael Grossi told the Security Council that the above-ground section of the Natanz facility was destroyed. The main centrifuge facility underground did not appear to have been hit, but the loss of power could have damaged the infrastructure there, he said. Netanyahu said the attack had been months in the making and was planned for April before being postponed. Among those killed were three of Iran's top military leaders: one who oversaw the entire armed forces, Gen. Mohammad Bagheri; one who led the paramilitary Revolutionary Guard, Gen. Hossein Salami; and the head of the Guard's ballistic missile program, Gen. Amir Ali Hajizadeh. Two of Bagheri's deputies were also killed, Iran confirmed Saturday: Gen. Gholamreza Mehrabi, the deputy of intelligence for the armed forces' general staff, and Gen. Mehdi Rabbani, the deputy of operations. On Saturday, Khamenei named a new leader for the Revolutionary Guard's aerospace division. Gen. Majid Mousavi will replace Gen. Amir Ali Hajizadeh, who was killed in Friday's airstrike. The Guard's aerospace division oversees Iran's arsenal of ballistic missiles. Trump urged Iran on Friday to reach a deal with the U.S. on its nuclear program, warning on his Truth Social platform that Israel's attacks "will only get worse.' "Iran must make a deal, before there is nothing left,' he wrote. -- AP (Lidman and Frankel reported from Jerusalem. Associated Press writers Natalie Melzer in Nahariya, Israel and Nasser Karimi in Tehran, Iran contributed to this report.)
The Star
2 hours ago
- The Star
Trump seems to reverse course on Chinese students in US, saying he supports them
US President Donald Trump reiterated his support for Chinese students in America on Thursday and pledged to help them remain in the country after graduation, distancing himself from initiatives that his administration has announced to limit or block international students because of national security concerns. 'I've always been strongly in favour of it. I think it's a great thing,' Trump said on Thursday, referring to Chinese nationals seeking to study in the US. 'It's also good for our schools. It's good for our country.' Trump added that he was in favour of 'letting them stay' and being hired by American companies. 'I'm all for making sure that people like that can go to work for all of our great companies,' he said. If not allowed to remain in the US, he noted, such graduates and entrepreneurs would return to their countries and starting their businesses there. 'This is happening all the time because they're not allowed to stay, and I think we'll probably end up doing something about that, right?' he added. Last month, the Trump administration ordered US embassies worldwide to halt scheduling new student visa interviews, including in China, as part of a broader plan to expand social media vetting for visa applications. Secretary of State Marco Rubio then announced plans to 'aggressively revoke' visas for Chinese students, particularly those with connections to the Chinese Communist Party (CCP) or studying in 'critical fields'. The policy specifically targeted students from mainland China and Hong Kong. Trump has promoted student visas as a pivotal factor in a much-anticipated trade deal that he has said is 'done' once Chinese President Xi Jinping approves it. Intensifying the review of Chinese student visa applicants has been part of a broader Trump crackdown on US academia's links with China, a campaign that dates back to his first term, when policymakers began raising alarms about whether these educational contacts were giving Beijing a technological edge. But Trump's latest comments appear to flip the narrative into one suggesting that Chinese students are needed for US technological progress. According to the US State Department, 277,398 Chinese students attended US schools during the 2023–2024 school year, a four per cent decrease from the previous year. Additionally, India overtook China as the top source of international students in the US, with 331,602 students – an increase of 23 per cent year-over-year. Chinese students had been the largest foreign student group in the US since the 2009–2010 school year, but their numbers have steadily declined since 2019–2020. While his remarks implied that Trump was now open to cooperation, many in Congress remain sceptical of Beijing's intentions. Earlier on Thursday, during a congressional hearing, US lawmakers accused China of stealing advanced semiconductor technology and exploiting relationships with American universities, as well as loopholes in export controls, to strengthen its military capabilities. Beijing is 'trying to dominate these critical technologies by any means necessary – through state subsidies, forced tech transfers, economic espionage, chip smuggling, and exploiting access to the West's most innovative AI labs and universities', Representative Bill Huizenga, a Michigan Republican who chairs a House Foreign Affairs subcommittee on South and Central Asia, contended. The hearing was held to review the proposed 2026 budget for the Bureau of Industry and Security, the Commerce Department agency that enforces export controls. The budget calls for a 133 per cent increase in enforcement funding, after BIS saw about a third of its staff cut by Trump's 'Department of Government Efficiency'. Defending the budget request, Jeffrey Kessler, the department's undersecretary for industry and security, insisted that additional resources were essential to improve enforcement. 'We could do a lot more with the additional resources that we're requesting ... I'm concerned that many instances of wrongdoing go undetected, and that's what the budget request is about,' Kessler said. During his testimony, Kessler warned against underestimating China's ambitions. 'China is investing huge amounts to increase its AI chip production, as well as the capabilities of the chips that it produces. 'So it's critical for us not to have a false sense of security, to understand that China is catching up quickly,' Kessler said. - SOUTH CHINA MORNING POST
