Key Takeaways
- Iran's IRGC launched 12 ballistic missiles targeting U.S. aircraft and facilities at Al-Azraq Air Base in Jordan, claiming to have hit F-35 hangars and command centers.
- Bahrain and Jordan activated air defenses to intercept multiple Iranian drones and missiles; Bahrain’s king’s media adviser confirmed the neutralization of "treacherous" airborne threats.
- Israel's cabinet is set to approve $350 million for the establishment of 61 new settlements in the West Bank, a move led by Finance Minister Bezalel Smotrich that significantly expands Israeli territorial control.
- Global oil prices surged over $2.00 per barrel following Iran's declaration that the Strait of Hormuz is closed, a critical chokepoint for global energy supplies.
- The Trump administration faces a dual crisis as it attempts to manage direct military exchanges with Tehran while its regional allies come under fire.
The Middle East has entered a period of intense military and political volatility as Iran’s Islamic Revolutionary Guard Corps (IRGC) launched a coordinated wave of missile and drone strikes against U.S. military assets in Jordan, Bahrain, and Kuwait. Iranian state media reported that 12 ballistic missiles were fired specifically at the Al-Azraq Air Base in Jordan, targeting hangars housing American F-35 fighter jets and a command-and-control center. Jordanian authorities immediately advised civilians to seek cover as air defenses engaged the incoming projectiles.
In a parallel escalation, Bahraini air defenses intercepted and neutralized Iranian airborne threats over its territory early Thursday morning. The king’s media adviser described the attacks as a violation of sovereignty, while reports from Manama indicated that several loud explosions were heard near the U.S. Navy’s Fifth Fleet headquarters. The IRGC claimed these strikes were in retaliation for recent U.S. "self-defense" airstrikes on Iranian air-defense and radar sites near the Strait of Hormuz.
Amidst the regional military flare-up, the Israeli cabinet is expected to finalize a massive $350 million funding plan for the de facto establishment of 61 new settlements in the occupied West Bank. The proposal, championed by Finance Minister Bezalel Smotrich, seeks to allocate budget for temporary housing and infrastructure before formal planning is complete. This move is strategically timed before a potential vote to dissolve the Knesset, ensuring the expansion is locked in despite shifting political winds.
The economic impact of the conflict was immediate, with crude oil prices spiking as Iran declared the Strait of Hormuz closed to all maritime traffic. Market analysts warn that a prolonged closure of this waterway could lead to severe energy shortages and further inflationary pressure on the global economy. Investors are closely monitoring the United States’ next move, as President Donald Trump warned that Tehran would "pay the price" for stalling peace negotiations and continuing its regional aggression.
On the ground in the West Bank, the new settlement plan targets strategically sensitive areas, including the Jordan Valley and the South Hebron Hills. By creating territorial continuity between existing outposts, the plan effectively undermines the prospect of a future Palestinian state. International observers and the United Nations have previously condemned such expansions as illegal under international law, but the current Israeli government appears committed to creating "facts on the ground" during the broader regional chaos.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.