The conflict between Israel and Iran could plunge the entire global economy into recession. Iran controls the Strait of Hormuz – the narrow passageway between Oman and Iran that is a critical route for global oil transportation with tankers carrying crude oil from the Gulf Region to Europe, Asia, and North America — and has threatened to close one of the world’s most important energy shipping routes.
Approximately one-fifth of the world’s oil supply passes through the Strait of Hormuz. That makes it the second most important oil route after the Strait of Malacca. And its disruption amid the Israel-Iran conflict could lead to significant increases in oil prices and widespread economic consequences.
Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei firmly rejected U.S. President Donald Trump’s assertion that Iran was seeking unconditional negotiations in response to Israeli military strikes.
In a statement broadcast on Iranian state television, Khamenei dismissed what he described as calls for surrender, reinforcing Tehran’s defiance amid rising regional tensions, according to dw.com
The latest remarks came after Trump claimed that Iranian officials had offered to visit the White House to restart nuclear talks following a series of Israeli strikes on Iranian targets. “No Iranian official has ever asked to grovel at the gates of the White House,” Iran’s UN Mission wrote on X, adding, “Iran does not negotiate under duress.”
Despite not providing details, Trump insisted, “Iran had bad intentions,” and referred to the country as “totally defenseless.” He hinted that the U.S. might consider joining the Israeli offensive: “We may do it, we may not,” he told reporters. “Next week will be big —maybe even sooner.”
Meanwhile, Israeli Defense Minister Israel Katz announced that the Israeli military had targeted Tehran’s “internal security headquarters,” describing it as the regime’s “main repressive arm.” He vowed that Israel would “continue to strike government symbols” and “hit the Ayatollahs’ regime wherever it may be.”
As explosions rocked eastern Tehran on Tuesday, thick columns of smoke were seen rising across the skyline. Local reports and the French AFP news agency confirmed the sounds of multiple blasts. NourNews, an Iranian outlet, noted the explosions were heard across different districts in the capital’s east.
Amid the violence, Iran imposed further restrictions on internet access, accusing Israel of exploiting digital networks for military purposes. The Ministry of Communications described the curbs as “temporary,” but international observatory NetBlocks reported a near-total internet blackout across the country.
Tragedy struck Tehran’s Shahid Bagheri district when an Israeli airstrike killed three Iranian Red Crescent workers who were assisting wounded civilians. The organization condemned the attack as a “blatant crime against humanity and a violation of international humanitarian law.”
Back in Israel, officials began easing some domestic restrictions imposed due to the conflict. While schools remain closed, certain workplaces will reopen provided they have immediate access to shelters. “As we continue our intense fight against Iran, we will also reopen the economy, ease restrictions, and restore Israel to paths of creativity, activity, and security,” Defense Minister Katz said.
The conflict has prompted a growing wave of evacuations. The U.S. embassy in Israel announced it is arranging evacuation flights and cruise ship departures for American citizens wishing to leave. Germany’s Foreign Office confirmed that 171 nationals had already been flown out and that a second flight was scheduled for Thursday, though no departure details were given.
As the situation remains volatile, international observers are closely monitoring the next moves by all parties involved, with fears of a broader regional escalation looming large.
