Israel has launched a pre-emptive military strike against Iran, according to Reuters reports, shattering recent diplomatic efforts and plunging the region back into direct conflict. Israeli Defense Minister Israel Katz confirmed the operation Saturday, stating it was necessary to eliminate immediate threats to Israel. This action follows weeks of escalating tensions over Tehran's nuclear and ballistic missile programs, with both Jerusalem and Washington issuing repeated warnings. Explosions were reported across Tehran shortly after the announcement, marking the most significant military engagement in the region since the 2020 air war.

Market uncertainty has surged amid threats to global energy stability. The sudden return to conflict places investors on high alert, with the world's critical energy corridor now facing heightened risk of disruption. U.S.-Iran negotiations in February aimed to prevent this exact scenario, but Israel insisted on the total dismantling of Iran's nuclear infrastructure. Tehran has vowed retaliation against any aggression, warning neighboring countries hosting U.S. troops of potential strikes against American installations.

For global markets, the primary concern shifts to potential supply chain disruptions. A full-scale regional war could involve multiple international actors, significantly impacting oil prices and regional stability. The $10 billion spike in Brent crude futures following the strike underscores the immediate financial stakes, as investors brace for prolonged volatility in energy markets.