On June 14, Putin and Trump held a phone call discussing the escalation of conflict between Israel and Iran. The situation is already affecting global energy markets.
Putin and Trump Call
The call was confirmed by the Kremlin and took place shortly after Israel launched a large-scale aerial campaign called "Operation Rising Lion." Kremlin aide Yuri Ushakov noted that Russia had warned Washington in advance about the potential escalation. Ushakov stated, "The Russian president recalled that our side proposed concrete steps before the current escalation aimed at finding mutually acceptable agreements."
Israel Strikes Iran
The Israeli military began its offensive on the night of June 13, deploying 200 fighter jets to target over 100 locations inside Iran, including suspected nuclear facilities. The strikes aimed to damage Iran’s nuclear capabilities. Iran's response came with missile fire into Israel that hit various locations, including military bases. Israeli officials acknowledged that while some facilities were damaged, the Iron Dome intercepted most of the projectiles.
Iran Threatens US Bases
On June 14, Iran's state media Fars reported that senior Iranian military officials warned of an expanding conflict that would include US military bases across the Middle East. While no specific timetable was given, the report indicated that Iranian forces view American troops as legitimate targets if US support for Israeli strikes continues. This geopolitical tension reflected in the S&P 500's 1.1% drop, highlighting market anxiety about the situation.
The escalation of conflict between Israel and Iran poses significant concerns for global financial markets, increasing the likelihood of rising oil prices which could impact the global economy.
