World powers respond to rising Middle East tensions as Israel strikes Iranian sites. The U.S. insists it was not involved in strikes, and the much of the globe urges restraint.

The Israel-Iran conflict has rapidly escalated following Israel's surprise airstrikes on June 13, 2025, targeting key Iranian nuclear and military sites, including Natanz and Isfahan. The strikes killed senior Iranian commanders and scientists,

Iran launched missile strikes on Tel Aviv and Haifa, causing casualties and damage, amid escalating tensions with Israel. As global leaders converge on the G7 summit, the conflict's potential to widen looms large.

Investors have been weighing the odds of further escalation in the conflict and spillover into the broader oil-rich Middle East.

Any disruption in Iran's oil production may impact global prices as Saudi Arabia and UAE are the only Opec+ members that can boost output.

Iran remains in economic crisis due to international sanctions over its nuclear program, which have limited its oil exports. The Iranian rial remains weak and inflation is stubbornly high at around 40%. Any further disruption to oil exports would ripple globally.