After decades of proxy fights it was the first round of escalation that Israel entered Iran Air space and conducted a precise strike on Saturday. This has opened a new front of Israel war with Iran and its proxies. There were certain specific parts of operation that might have changed things under the surface.
The first of them being that deepest strike was estimated to be 1800 Km away from Israel and 100 war planes flew across without any intervention. Second it was a strike on certain military capabilities that supported drone and missile manufacturing. Third and most important Israel now has two THAAD ( USA Air Defence systems) for protection of its Airspace that is major target for many.
Iran leader has already given orders to army for an appropriate repose and even USA along with Israel expect it to happen. The question remains what level and when the response will take place. Even more important question will be whether Israel will wait for Iran response or will it do before as an element of surprise.
From financial markets perspective weekend operation was best case scenario unfolding but given USA election next week whether base or worst case yet to occur or they are totally out of scope. The base case being attacking Iran’s oil and gas capabilities and worst is attacking its nuclear program sites.
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