(Bloomberg) — Benjamin Netanyahu vowed to retaliate against Iran after it fired about 200 ballistic missiles at Israel in a severe escalation of hostilities between the adversaries that world powers fear could spiral into a Middle East-wide war.
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The barrage started around 7:30 p.m. Israel time on Tuesday, hours after the US warned an Iranian assault was imminent. The Israel Defense Forces said most of the missiles were intercepted and reports indicated only one person, who was in the West Bank, was killed.
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The US, whose warships helped shoot down the projectiles, similarly said the attack “appears to have been defeated and ineffective.”
Still, the salvo was even more dramatic and dangerous than the barrage of 300 missiles and drones Iran fired at Israel in April. This time, Tehran gave less warning and its rockets penetrated far deeper into Israeli territory, with cities including Tel Aviv and Hod Hasharon being hit and having their night-time skies lit up.
Iran said its latest move was a reprisal for Israel’s devastating attacks on Lebanon-based Hezbollah, Tehran’s most important proxy militant group. On Friday, Israel assassinated Hezbollah’s leader, Hassan Nasrallah, in an air strike on Beirut. That came after days of intense bombing that killed several of the group’s commanders, while on Monday night Israel stepped up its campaign by sending troops into southern Lebanon.
Iran said it aimed for military targets on Tuesday and that the operation was a success. Its state media claimed 90% of the missiles hit their targets, something the initial US and Israeli analysis suggested was incorrect. In some parts of Iran, crowds gathered to celebrate.
“Iran made a big mistake tonight, and it will pay for it,” Netanyahu, the Israeli prime minister, said. “The regime in Iran does not understand our determination to defend ourselves and our determination to retaliate against our enemies.”
Israel’s response could come within days and potential targets include Iranian oil infrastructure and military bases. The Islamic Revolutionary Guards Corp. threatened new “crushing” attacks if Israel bombed Iran.
The US says it’s “well-postured” to defend Israel against Iranian threats and has said there will be “severe consequences” for Tehran because of Tuesday’s attacks.
In April, Israel hit back at Iran with a limited strike on an air base in Isfahan that caused little damage. This time, there’s plenty of pressure within Israel for Netanyahu to respond more forcefully.
Oil prices, gold and US Treasuries jumped late Tuesday when the US said Iran was preparing an attack, though they later pared some gains when it became clear the barrage had caused few casualties in Israel. Brent crude rose another 1.5% in early trading on Wednesday to almost $75 a barrel. It’s still down substantially in the past six weeks, suggesting traders do not believe there will be major supply disruptions in Iran or other parts of the oil-rich Gulf.
The attacks were the latest escalation of a wider conflict that began when Gaza-based Hamas attacked southern Israel on Oct. 7 last year, killing 1,200 people and kidnapping 250.
Israel’s subsequent offensive on Gaza has killed 41,000 people, according to the Hamas-run health ministry in the Palestinian territory. That’s stoked widespread anger against Israel across the Middle East and other parts of the world.
Hezbollah started attacking Israel in solidarity with Hamas on Oct. 8. Both groups are backed by Iran and considered terrorist organizations by the US.
In recent weeks, Israel has turned its main focus from Gaza to Hezbollah on its northern front and Lebanon. It escalated its skirmishes against Hezbollah last month with a series of attacks against the group, wiping out almost its entire leadership and a significant part of its stockpile of missiles and other weaponry.
Netanyahu has said Israel was forced to take more aggressive action against Hezbollah because diplomatic efforts by the likes of the US and France failed to stop its missile and drone strikes. Israel also wants to enable tens of thousands of displaced civilians to return to their homes in the north.
The European Union, which like the US has had little success controlling or ending fighting in either Gaza or Lebanon, said “successive waves of attacks and retaliations have been fueling an uncontrollable spiral of conflict.”
The US has beefed up its military posture in the Middle East in recent days. The Pentagon on Monday said it would send a few thousand additional troops and fighter jet squadrons to the region.
–With assistance from Galit Altstein.
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