Global markets have been thrown into turmoil following a major Israeli airstrike deep into Iranian territory, targeting nuclear and military installations. The operation, dubbed “Rising Lion,” marks a dramatic escalation in the longstanding hostilities between the two nations, raising the specter of a broader regional conflict and triggering ripple effects across global energy markets, trade flows, and investor sentiment.

According to Israeli officials, the strike aimed to neutralize what they described as a fast-approaching nuclear threat. Prime Minister Benjamin Netanyahu called the operation a "targeted military campaign" necessary to defend Israel’s existence, warning it would continue “for as long as it takes” to eliminate the perceived danger. Tehran, in turn, has vowed a “harsh” response.

>>Cyprus Airports: Flights Canceled and Security Tightened After Israeli Strike on Iran<<

The attack has spurred a classic flight to safety among global investors. Brent crude surged over 9%, marking its biggest spike in more than three years, while natural gas prices in Europe jumped 6.8%. Gold soared past $2,400 an ounce, and US Treasury yields fell as demand for safe-haven assets climbed. The S&P 500 futures dropped 1.6%, and the Stoxx 600 in Europe declined by 1.7%.

Cryptocurrencies, often seen as risk assets, slumped, while the dollar index rose by 0.4% after an initial dip, benefiting from the move toward traditional reserve currencies.

At the heart of global anxiety is the Strait of Hormuz, a vital maritime corridor through which nearly 20% of the world’s oil passes. While not yet impacted, any Iranian retaliation targeting energy infrastructure or trade routes could trigger severe supply disruptions. Analysts warn that a prolonged standoff could add a new layer of inflationary pressure to an already fragile global economy.

The impact is especially acute in energy-dependent regions like Southern Europe, with countries such as Greece and Cyprus facing renewed uncertainty.