Oil and gold prices surge on reports of Israeli strike on Iran

IRAN: Explosions reverberated through the vicinity of the Iranian city of Isfahan in the early hours of Friday (19 April), purportedly marking the initiation of a long-anticipated retaliatory strike by Israel in response to an earlier Iranian assault on Israel, displaying defiance against international pressures to desist.

While Israeli authorities refrained from issuing an official confirmation of the strike, reports from Iran’s state-run media indicated activation of air defences, downplaying assertions of an attack on a military installation in Isfahan, situated approximately 315 kilometres (196 miles) south of Tehran, and characterizing the incident as routine activity.

Israel communicated its intent to launch strikes in Iran to the US on Thursday evening, providing its closest ally with a brief official notice, according to an Israeli official.

The warning lacked specifics regarding the nature of the attack but emphasized Israel’s intention to steer clear of Tehran and its environs, focusing instead on a particular military program or facility associated with the Iranian Revolutionary Guards.

Additionally, Syria’s Sana state news agency reported Israeli missile strikes targeting air defence positions in its southern region, citing a military source.

Three Western officials corroborated Israel’s launch of the strike on Iran, with one suggesting its scope was limited.

ABC News and CBS News reported the use of missiles by Israel in the attack, citing US officials, while Israel itself refrained from making any official remarks.

Isfahan encompasses both an Iranian military air base and a critical site within Iran’s nuclear program, which Tehran asserts is solely for peaceful purposes but raises concerns in the West regarding its potential to facilitate weapons development.

Despite reports suggesting an attack, the Tasnim news agency, closely affiliated with the Revolutionary Guards, asserted the safety of the air base and nuclear facility near Isfahan, dismissing external attack claims.

Iranian military official confirms intercepting ‘suspicious object’ in Isfahan, no damage reported

Second Brigadier General Siavash Mihandoust, Iranian military figure in Isfahan, was quoted by state television stating that air defence batteries intercepted a “suspicious object,” resulting in no damage, as confirmed by the senior commander.

Siavash Mihandoust, an Iranian Army official in Isfahan, said the sound of explosion heard in the city on Friday morning was the result of the air defense's shoot-down of a "suspicious object".
"The incident didn't leave any damages," the official said.

— Iran International English (@IranIntl_En) April 19, 2024

IAEA confirms unscathed Iranian nuclear sites

The International Atomic Energy Agency (IAEA) has verified that Iranian nuclear sites remain unharmed, emphasizing the inviolability of such facilities in military conflicts.

Rafael Grossi, the head of the United Nations nuclear watchdog, has urged all parties to exercise restraint and underscored the principle that nuclear facilities should never be subjected to targeting in warfare.

IAEA can confirm that there is no damage to #Iran’s nuclear sites. DG @rafaelmgrossi continues to call for extreme restraint from everybody and reiterates that nuclear facilities should never be a target in military conflicts. IAEA is monitoring the situation very closely. pic.twitter.com/4F7pAlNjWM

— IAEA – International Atomic Energy Agency ⚛️ (@iaeaorg) April 19, 2024

Following initial reports, oil prices experienced a notable surge before retracing their gains subsequent to Tehran’s apparent efforts to diminish the significance of the strikes.

According to Financial Times, Brent crude futures briefly surpassed US$90 a barrel before settling at around US$87.70 as of 4 pm Singapore time, while West Texas Intermediate climbed to US$83.75 a barrel.

Concurrently, European stocks registered declines in early trading, with the Stoxx Europe 600 index down by 0.6%, and contracts tracking the US benchmark S&P 500 indicating a 0.5% downturn ahead of the New York market opening, potentially extending Wall Street’s six-session losing streak.

Concurrently, in the international market, spot gold prices surged, nearing US$2,400 per troy ounce during early trading hours. Currently, spot gold prices hover around US$2,382 to US$2,395.

The Middle East witnessed escalated tensions amid anticipation of Israeli reprisals following Iran’s launch of over 300 armed drones and missiles at Israel over the preceding weekend, marking the first direct targeting of the country from Iranian soil.

Iran justified its strike as retaliation for an assault on its embassy in Damascus, which resulted in the deaths of senior military personnel, an incident attributed to Israel.

Singapore’s Ministry of Foreign Affairs (MFA) has strongly condemned Iran’s recent military action, and highlighted Iran’s attack as an act that exacerbates tensions in a region already fraught with conflict.

Echoing this sentiment, leaders from the G7 nations have joined in reprimanding Iran’s actions, underlining the imperative for Iran to exercise restraint to avert the risk of an uncontrollable escalation in the region’s conflicts.

Earlier on Thursday, the Pentagon disclosed that Defense Secretary Lloyd Austin engaged in discussions with his Israeli counterpart Yoav Gallant, focusing on regional threats and Iran’s disruptive activities in the Middle East.

Notably, in January 2023, a military factory belonging to the Iranian army in Isfahan fell victim to an attack by multiple quadcopters, which failed to inflict damage due to the facility’s fortified defences, including air defence batteries and mesh wiring designed to counter small unmanned aerial vehicles.

Iran implicated Israel in the attack and arrested four individuals accused of operating on behalf of Mossad, the Israeli intelligence agency.