Middle East conflict escalates: Iran threatens nuclear weapons and retaliation!

Middle East conflict escalates: Iran threatens nuclear weapons and retaliation!

On June 13, 2025, there was a dramatic escalation in the Middle East when Israel launched an unprecedented attack on several Iranian targets on Friday night. Among other things, the nuclear facility in Natanz and military facilities in the greater Tehran area were bombed. These military actions were carried out by the Israeli government due to fears that Iran was close to completing nuclear-capable infrastructure, referred to as the “point of no return.” Intelligence suggests that Iran is secretly working to create a nuclear bomb, which is why Israel had to take action.

The strikes were seen as a direct response to a rebuke from the International Atomic Energy Agency (IAEA), which criticized Iran for violating uranium enrichment commitments. Iran then announced that it would put a third, hidden enrichment center into operation and build more modern centrifuges. While Tehran rejected the IAEA decision as politically motivated and stressed its right to peaceful use of nuclear power, it also threatened to expel inspectors and potentially withdraw from the Non-Proliferation Treaty.

Reactions to the attack

US President Donald Trump appealed to Iran to begin negotiations but threatened military retaliation if this did not happen. The geopolitical tensions had a significant impact on the financial markets. The Euro Stoxx 50 fell 1.4%, while the FTSE 100 fell 0.7%. US futures registered a 1.4% decline. As a result, gold prices rose 1% to around $3,436 an ounce, while oil prices initially rose 9% but stabilized at a gain of 5.6%.

Currency markets also showed great volatility, with the US dollar gaining against the euro and pound but losing against the yen and franc. In the cryptocurrency space, Bitcoin price fell below $104,000 and reached lows of around $103,162, down around 2% compared to previous days. Other cryptocurrencies such as Ethereum (ETH) and Ripple (XRP) recorded losses between 7% and 10%.

Future developments

Analysts warn that military attacks on Iran's nuclear facilities could only delay the program without finally stopping it. Ulrich Schlie from the Institute of Political Science at the University of Bonn expressed concern, emphasizing that it is only a matter of time before Iran is able to develop nuclear weapons, especially if Iran can quickly increase its enrichment level from 60% to the required level of 90%. Over the past three months, Iran has significantly increased its stockpile of highly enriched uranium, further exacerbating the threatening situation.

In this unstable situation in the Middle East, there is a risk of major military escalation. It remains to be seen whether the pro-Iranian militias in Iraq will actively participate in the conflict. The US is supporting Israel in its efforts to deter Iranian counterattacks, further raising the possibility of Washington's military involvement. The current conflict could have a lasting impact not only on the geopolitical landscape of the region, but also on global markets.

Developments remain to be seen as the international community hopes for de-escalation. Details about the attacks and their consequences can be found on the website of Cointelegraph and ZDF to find.