Critical energy infrastructure in Israel and Iran has not escaped unscathed from the first few days of the countries' escalated conflict. Worst-case scenarios have yet to be realized, but the war is already having a notable impact on energy production and exports in both countries.

Oil prices rose again Tuesday morning in Asia, as markets weighed the odds of a resolution in the Israel-Iran conflict. Crude prices bounced as news of fresh attacks rolled in, including another wave of Iranian missiles launched at Israel and more Israeli strikes on Iran.

Blasts have been heard in Tehran and sirens have sounded in Israel as US president convenes National Security Council.

Oil prices resumed their upward climb and U.S. futures were lower early Tuesday after Israel’s military issued an evacuation warning to 330,000 people in Iran’s capital Tehran. Asian shares were mixed.

Iran has arrested dozens of people on suspicion of spying as fears grow in the Islamic Republic over the extent of its infiltration by Israel’s Mossad intelligence service.

Haifa and Tel Aviv struck by Iranian missiles as U.S. embassy in Israel directs government employees and families to shelter in place at home.

President Donald Trump in about eight hours went from suggesting a nuclear deal remained “achievable” to urging Tehran’s 9.5 million residents to flee for their lives.

What began with Israeli strikes on Iranian nuclear facilities and other targets on June 13, 2025 has now spiraled into the world’s first full-scale example of what I as an expert in nuclear security call a “threshold war” – a new and terrifying form of conflict where a nuclear weapons power seeks to use force to prevent an enemy on the verge of nuclearization from making that jump.