Five Takeaways from Israel and Iran's Massive Exchange of Blows

The escalation of the conflict between Israel and Iran was not unexpected, but the scale and nature of the tough confrontation were unpredictable until the very end. The parties have chosen the highest possible degree of struggle. Diplomacy at this stage is simply impossible, analysts at Bloomberg are sure.

According to them, five preliminary conclusions can be drawn from the Iran-Israel conflict.

First, Israel had prepared carefully before launching strikes on Iran. The result was the deaths of the Revolutionary Guard commander and nuclear scientists. UN officials confirmed that the Isfahan facility, Iran’s only uranium processing plant, was attacked.

Second, Iran responded by launching what it said were hundreds of ballistic missiles toward Israel. The explosions could be seen in Tel Aviv, and Israelis were advised to seek shelter. This rapid escalation is indicative of a fundamental change in policy Tehran, when Iran waited days or weeks to strike back at Israel. The US also actively and openly helps Israel defend itself against Iranian missiles.

Third, despite Tel Aviv starting the attack, Israel's defense minister accused Tehran of "crossing red lines" with attacks on civilians. Prime Minister Benjamin Netanyahu stressed that Israel would take more action against Iran as needed.

Fourth, Iran said the Israeli attack had derailed diplomacy and vowed a firm and decisive response. US-Iran nuclear talks were due to resume this weekend, but that appears unlikely. US President Donald Trump earlier called on Iran to reach a nuclear deal “before it’s too late.”

Fifth, oil prices soared and tanker freight rates jumped as markets priced in the prospect of disruption to much of the world's oil transport fleet. Even major stocks lost value in the U.S., while gold rose again.