Futures Tumble, Oil And Gold Soar On Reports Of “Huge Explosions” In Central Iran, Israeli Airstrikes In Iraq And Syria (2024)

The Israeli retaliation has begun, Iranian state media confirms strikes...

SUMMARY:

• Three large explosions heard in Isfahan south of Tehran, US officials confirm.
• The Natanz nuclear facility is located in Isfahan.
• Unconfirmed simultaneous explosions have also been reported in Syria and Iraq (Baghdad and Babil/Babylon province).
• Iran has established a no-fly-zone over its western region.
• Market reaction very strong: oil & gold soaring; TSY yields, crypto, and stocks tumbling.

And just like that, Israel – having once again ignored Biden’s pleadings not to escalate the already tense situation – is retaliating against Iran’s weekend strike, which was itself a retaliation against Israel bombing Iran’s embassy in Syria on April 1.

Moments ago futures dumped, oil prices spiked, and treasury yields slumped amid social media reports and Reuters headlines that there have beenthree “huge explosions” near the central Iran cities of Natanz(location of an Iranian nuclear power plant)and Isfahan(location of the Iranian Nuclear Technology Center which is suspected of being the center of Iran’s nuclear weapons program), as well as simultaneous explosions in Iraq and Syria, where the Israel air force appears to be targeting pro-Iranian militias.

• IRANIAN MEDIA CONFIRMS AN ISRAELI ATTACK ON IRANIAN TERRITORY
• IRANIAN STATE MEDIA IS REPORTING THAT TONIGHT’S AIRSTRIKE BY THE ISRAEL AIR FORCE MAY HAVE TARGETED THE 8TH TACTICAL AIRBASE OF THE IRANIAN AIR FORCE, WITHIN ISFAHAN INTERNATIONAL AIRPORT, WHICH CONTAINS MULTIPLE SQUADRONS OF F-14 “TOMCAT” FIGHTER AIRCRAFT.
• ABC NEWS REPORTS THAT ISRAELI MISSILES HIT A SITE IN IRAN
• IRAN STATE MEDIA SAYS ‘NO FLY ZONE’ ESTABLISHED OVER WESTERN REGION
• IRANIAN MEDIA: 3 HUGE EXPLOSIONS WERE HEARD IN ISFAHAN, SOUTH OF TEHRAN
• JERUSALEM POST: SIMULTANEOUS EXPLOSIONS REPORTED IN IRAN, SYRIA, AND IRAQ ACCORDING TO INITIAL REPORTS
• IRAN’S FARS NEWS AGENCY SAYS EXPLOSIONS HEARD IN CENTRAL ISFAHAN AIRPORT, REASON UNKNOWN
• ISRAELI MISSILES HIT IRAN SITE, US OFFICIAL SAYS: ABC

Some more reports:

Here is Marco Rubio telling us more or less what happened:

A video of the explosions in Iran:

There have also been reports of drone activity over Iraq:

Flights above central Iran are diverting from their designations:

… as the airspace over the region is rapidly clearing:

Unconfirmed reports suggest that the Israeli airstrikes are targeting a building where a high level meeting was being held among groups supported by Iran and the IRGC:

The market reaction has been immediate, with S&P futures dumping…

…testing key CTA liquidation levels…

…and oiljumped with Brent rallying above $89 a barrel in a sudden move higher.

“Unconfirmed reports of strikes in the Middle East may suggest that worst fears have come true,”with traders having been braced for Israel’s response to Iran’s drone and missile attack, saidWarren Patterson, head of commodities strategy for ING Groep NV in Singapore.

“If reports turn out to be true — and depending on the nature of strikes —we are moving closer towards a scenario where supply risks become a reality,and so the market will likely have to start pricing in an even larger risk premium,” he added.

… and gold surging back above $2400…

…and Treasuries are aggressively bid…

And Bitcoin repricing WW3 again…

…as traders brace for the worst, because even if Israel hopes to present a “measured” retaliation, now it’s a question of what Iran will do next.

More as we get it, until then, fear not:he is watching everything… closely.