World February 28, 2026

Israel Launches Pre-Emptive Strike on Iran, Diplomacy Collapses

Tehran reports explosions as regional tensions surge and markets brace for energy and supply disruptions

By Avery Klein
Israel Launches Pre-Emptive Strike on Iran, Diplomacy Collapses

Israel carried out a pre-emptive military strike against Iran, confirmed by Israeli Defense Minister Israel Katz. Explosions were reported across Tehran soon after the announcement. The action marks a sharp end to recent diplomatic efforts and raises the prospect of broader conflict, with global markets watching for disruptions to energy flows and supply chains.

Key Points

  • Israel announced a pre-emptive military strike on Iran - impacts defense and geopolitical risk assessments.
  • Explosions were reported across Tehran shortly after the announcement - energy and logistics corridors face heightened risk.
  • Markets are on alert for supply chain disruptions and increased volatility - sectors affected include energy, shipping, and broader financial markets.

Israel has launched a pre-emptive military strike against Iran, a move confirmed on Saturday by Israeli Defense Minister Israel Katz. Katz said the operation was required to eliminate immediate threats to the State of Israel.

Soon after the confirmation, explosions were reported across Tehran. The strikes represent the most significant military action in the region since the 12-day air war in June.

The operation follows a period of rising tension, with repeated warnings issued by both Jerusalem and Washington regarding Tehran's nuclear and ballistic missile programs. Those warnings had formed part of an elevated diplomatic alertness in recent weeks, but the strike signals a collapse of recent diplomatic initiatives.

In February, the United States and Iran had resumed negotiations intended to reduce the chance of open conflict. Despite those talks, Israel maintained a firm position insisting on the full dismantling of Iran's nuclear infrastructure - a demand it continued to press even as negotiations between Washington and Tehran moved forward.

Tehran has previously pledged to defend itself against any act of aggression. It also warned neighboring countries that host U.S. forces that American military facilities could be targeted for retaliation if Washington supported strikes against Iran.

Markets and investors reacted to the sudden escalation with heightened caution. The return to direct military confrontation has focused attention on the security of the region's critical energy corridors and on the wider risks to supply chains. Analysts and market participants are now weighing the potential for broader regional warfare that could draw in multiple international actors.

The immediate concerns for global markets are centered on potential disruptions to energy supplies and ripple effects through logistics and trade routes that traverse the region. The uncertainty is expected to weigh on commodity markets and to increase volatility across asset classes until the situation clarifies.

At this stage, the sequence of events - a confirmed Israeli operation, reports of explosions in Tehran, and existing warnings from both capitals - has sharply raised geopolitical risk. Observers will be monitoring subsequent statements from the involved governments and any operational developments that could indicate either escalation or de-escalation.

Risks

  • Potential escalation into a wider regional war involving multiple actors - this would significantly affect energy markets and international trade routes.
  • Disruption to critical energy corridors could lead to shocks in commodity markets and strain supply chains for industries reliant on uninterrupted shipping routes.
  • Possibility of retaliatory actions against U.S. military installations in nearby countries if Washington is seen to support the strikes - this could affect defense spending and regional security costs.

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