Israeli officials are preparing a significant military response to Tuesday’s large-scale missile attack from Iran, with potential strikes on Iran’s oil production facilities and other strategic targets, according to statements made to Axios.

Why It Matters: Tensions between Israel and Iran are escalating rapidly, bringing the two countries closer to an all-out war that could open a new and dangerous front in the already volatile Middle East. Iran warned that any Israeli retaliation would prompt further attacks, with Israeli officials confirming that they are weighing all options—including strikes on Iran’s nuclear facilities.

Details: Israeli officials are considering a range of targets, including Iran’s oil infrastructure, air defense systems, and even strategic assassinations, according to sources. The retaliation could involve airstrikes and covert operations, similar to the one that killed Hamas leader Ismail Haniyeh in Tehran two months ago.

In April, a limited Israeli strike followed a missile and drone attack by Iran. This time, however, Israeli officials say the response will be far more substantial.

Context: The Israeli security cabinet convened on Tuesday in a fortified underground bunker as Iranian ballistic missiles targeted Israel. Many missiles were intercepted by Israeli and U.S. defense systems, while those that got through landed in open areas near sensitive military sites. An Israeli defense official confirmed that dozens of missiles aimed at the Mossad headquarters missed their target.

Prime Minister’s Statement: Israeli Prime Minister Benjamin Netanyahu issued a stern warning: “Iran made a big mistake tonight, and it will pay for it… Whoever attacks us, we will attack them.”

Behind the Scenes: Israeli officials are also in discussions with the Biden administration to coordinate the next steps, particularly given the strategic implications and the potential need for U.S. support. President Joe Biden confirmed that the U.S. and Israel are in talks about the situation, emphasizing that while Israel is expected to respond, the action should be measured.

A final decision on the Israeli retaliation is expected in the coming days, possibly after further consultations with U.S. leadership.

ALI

ALI

Experienced Senior Research Analyst

SIKANDER RAZA

SIKANDER RAZA

Sikander Raza, a Senior Technical Analyst

HAMZA SALEEM

HAMZA SALEEM

Hamza Saleem, a Senior Business Analyst

IRSA

IRSA

Irsa Sajjad, as a Research Analyst for Equities

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