UPDATE: Israel and Iran trade strikes for first time since April ceasefire, with Iran declaring halt to offensive operations after diplomatic intervention, threatening return to full-scale war affecting global energy markets.
Israel and Iran traded fire early Monday in their first attacks since the U.S. struck a ceasefire with Tehran two months ago. Hours later, Iran's military announced it would stop offensive operations. The renewed hostilities threatened to drag the Middle East back into a full-scale war that has shaken the global economy and driven energy prices higher worldwide.
Iran launched waves of attacks on Israel on Monday, and Israel launched strikes on central and western Iran. Iranian state television reported explosions in Isfahan, Karaj, Tabriz and Tehran. Israel's military confirmed striking a petrochemical factory in Mahshahr and targeting truck-based missile launchers, saying it hit sites that produce materials for ballistic missiles. Iran closed the airspace around Tehran's Imam Khomeini International Airport following the Israeli strikes.
U.S. President Donald Trump urged both countries to immediately stop shooting and said talks were ongoing for a ceasefire. Diplomats from Egypt, Saudi Arabia, Turkey, Pakistan and Qatar urged the Trump administration to pressure Israel while also pressing Iranian officials to halt attacks. The war, launched by the U.S. and Israel on February 28, has maintained Iran's stranglehold on the Strait of Hormuz—a crucial passage for global oil and natural gas. Oil prices climbed Monday morning, with Brent crude jumping 2.6% to $95.50 a barrel.
Editor’s rationale — Major institutional impact from direct state-to-state military exchange threatening established ceasefire with global energy market implications; worldwide scope affecting oil/gas prices and food costs; durable relevance as ongoing conflict with long-term geopolitical consequences; moderate novelty as reporting reflects reactions and official statements rather than primary disclosures; strong verification from named governments and military confirmations but some sourcing relies on anonymous regional officials.