JERUSALEM—A volley of cruise missiles and armed drones struck the Israeli port city of Eilat early Saturday, widening a two-week confrontation that has drawn in Iran, Israel and the United States and sent crude prices to their highest level since 2024, according to Israeli and U.S. officials.
Israel’s military said at least eight projectiles were launched from Iranian territory shortly after 3 a.m. local time, damaging warehouses near Eilat’s commercial pier and injuring four dockworkers. A spokesperson for the Israel Defense Forces (IDF) told reporters that the majority of incoming weapons were intercepted, but characterized the incident as “a clear escalation directly attributable to Iran.”
Senior U.S. defense officials, speaking on background, confirmed that the Navy guided-missile destroyer USS Laboon intercepted two of the missiles over the Red Sea. The U.S. Fifth Fleet has been repositioning vessels in the Gulf of Oman and the eastern Mediterranean “to deter further aggression,” one official said.
Iranian state media carried a brief statement from the Islamic Revolutionary Guard Corps denying responsibility and warning that “any unfounded accusation will receive a crushing response.” Independent verification of the weapons’ origin was not immediately possible.
The attack jolted energy markets already on edge. Brent crude futures rose 4.6 percent in London to settle at $92.11 a barrel, the highest closing price in 18 months. Analysts at Eurasia Group said traders are pricing in the possibility of disruptions at the Strait of Hormuz, through which roughly one-fifth of the world’s oil flows.
In Washington, the White House National Security Council condemned the strike and said President Biden had spoken with Prime Minister Benjamin Netanyahu. Former president Donald J. Trump, campaigning in Ohio on Saturday, accused the administration of “inviting chaos in the Middle East” and vowed a “swift and decisive” U.S. response if elected.
Israel’s security cabinet convened an emergency session and authorized “targeted retaliatory measures,” according to a government readout. Two Israeli officials said discussions include cyber operations and expanded covert action against Iranian proxies in Syria and Lebanon.
Diplomatic channels are also in motion. France requested an emergency U.N. Security Council meeting for Monday, while OPEC delegates told reporters in Vienna that ministers are prepared to increase output “if physical supply is threatened.”
Regional analysts caution that both Tehran and Jerusalem may still prefer to avoid an all-out war. “What we are witnessing is calibrated brinkmanship,” said Dana El-Azar, a fellow at the Carnegie Middle East Center. “The real danger is miscalculation—one errant missile could tip this into a direct Iran-Israel conflict with global economic consequences.”
Whether Saturday’s strike represents a lone escalation or the opening of a broader front will hinge on forthcoming intelligence assessments and the speed of any Israeli response. For now, shipping insurers are raising premiums, and energy importers in Asia and Europe are bracing for a volatility that shows no sign of abating.