Israel Vows Retaliation for Massive Iranian Missile Attack

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(Bloomberg) — Benjamin Netanyahu has vowed revenge on Iran after it fired 200 missiles at Israel, a major escalation of hostilities between the world powers that world powers fear could turn into a Middle East war.

The attack on Tuesday evening came hours after the US warned of an imminent Iranian attack. The Israeli Defense Forces said that many missiles were intercepted and reports indicated that only one person was killed, who was in the West Bank.

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The US, whose warships helped fire the projectiles, also said the attack “appears to have been defeated and ineffective.”

Still, the salvo was far more dramatic and dangerous than the array of missiles and 300 drones Iran fired at Israel in April. This time, Tehran gave little warning and its rockets penetrated deeper into Israeli territory, with cities including Tel Aviv and Hod Hasharon hit and the night sky lit up.

“Iran is in danger of setting the whole place on fire – this must be prevented at all costs,” said German Chancellor Olaf Scholz.

Iran said its latest move was in retaliation for Israel’s devastating attacks on Lebanon-based Hezbollah, Tehran’s most important proxy group. On Friday, Israel killed the leader of Hezbollah, Hassan Nasrallah, in an air strike in Beirut. This happened after days of bombings that killed many of the group’s commanders, and on Monday night Israel intensified its campaign by sending troops to southern Lebanon.

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The immediate signals from Iran after the assassination of Nasrallah were that it would avoid direct attacks on Israel, as the new President Masoud Pezeshkian has repeatedly said in recent weeks that he wants better relations with the West in order to ease economic sanctions on the Islamic Republic.

However, hard-line elements in the government and the Islamic Revolutionary Guards Corps may have convinced supreme leader Ayatollah Ali Khamenei that he needs to take a tougher stance as Hezbollah is hammered.

He may have come under “increasing pressure from the Revolutionary Guard to step aside and respond to Israel in a way that would restore the embargo,” said Helima Croft, a strategist at RBC Capital Markets and a former analyst at Central. Intelligence Agency.

Iran said it was targeting military sites and that the operation was successful. State media say 90% of the missiles hit their targets, something initial US and Israeli assessments suggested were incorrect. In other parts of Iran, crowds gathered to celebrate.

“Iran made a big mistake tonight, and it will pay,” said Netanyahu, the Israeli prime minister. “The Iranian regime does not understand our determination to defend ourselves and our determination to take revenge on our enemies.”

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In April, Israel hit back at Iran with a limited strike on an air base that caused little damage. In this case, there is a lot of pressure in Israel for Netanyahu to respond with force.

Israel’s response could come within days and possible targets include the OPEC member’s oil infrastructure, military bases and – in the most extreme case – nuclear facilities.

Yair Lapid, Israel’s opposition leader and former prime minister, said Iran must pay a “significant and heavy” price.

Israel must “destroy Iran’s nuclear program, its central energy centers,” according to Naftali Bennett, also a former leader and one of Netanyahu’s biggest political rivals.

The US says it is ready to defend Israel and that there will be “serious consequences” for Tehran for Tuesday’s attack.

Iran said that if Israel “dare” to retaliate, “a severe response will follow.”

The prices of oil, gold and US Treasuries fell late on Tuesday when the US said Iran was preparing to attack, although it later gained some ground when it became clear that the violence had caused a few casualties in Israel.

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Brent crude rose another 2.5% on Wednesday to over $75 a barrel. However, it is still lower than six weeks ago, suggesting that traders do not believe there will be a major supply disruption to Iran or other parts of the oil-rich Gulf.

The attack was the latest escalation in a wider conflict that began when Gaza-based Hamas attacked southern Israel on October 7 last year, killing 1,200 people and taking 250 hostages.

Israel’s subsequent offensive on Gaza has killed 41,000 people, according to the Palestinian Authority’s Hamas-run health ministry. That sparked widespread anger against Israel in the Middle East and other parts of the world.

Hezbollah began attacking Israel in collaboration with Hamas on October 8. Both groups are supported by Iran and are considered terrorist organizations by the US.

In recent weeks, Israel has shifted its main focus from Gaza to Hezbollah, eliminating almost all of its leadership and a significant portion of its stockpile of missiles and other weapons.

Israel says it is carrying out “targeted ground attacks” in Lebanon but its intervention has raised fears that its soldiers could be seriously injured and detained for months, if not more.

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Hezbollah said its fighters clashed with Israeli soldiers in the village of Odaisseh on Wednesday and forced them to retreat. Israel said it was sending infantry and armored forces to southern Lebanon.

Netanyahu says that he was forced to take drastic measures against Hezbollah because the communication efforts of people like the US and France failed to stop the group’s missiles and drones in Israel. He also wants to enable tens of thousands of displaced citizens to return to their homes in the north.

Israel’s offensive in Lebanon has killed hundreds of civilians in the past two weeks, according to the country’s officials.

The US has strengthened its military presence in the Middle East in the past few days. The Pentagon on Monday said it would send several thousand troops and fighter jets to the region.

—With help from Galit Altstein, Dan Williams, Kateryna Kadabashy and Iain Rogers.

(Updates on statements by Israeli opposition leaders and recent events in southern Lebanon.)

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