US expects Iranian missile attack on Israel – Defense company stocks respond positively

The USA has indications that Iran plans to launch a ballistic missile attack on Israel within the next 12 hours, as a senior White House official announced. The USA is actively supporting Israel in preparations to defend against the possible attack, which would have severe consequences for Iran. According to a report by the Israeli state channel Kan News, Israel is preparing for a “comprehensive” Iranian attack on security installations, which could also target civilian sites. The warning comes after Israeli forces entered southern Lebanon, escalating the confrontation with Hezbollah, which is supported by Tehran. A spokesperson for the Israeli military stated that the country is preparing for both defensive and offensive operations. An immediate response from the Iranian foreign minister was not forthcoming. An Iranian attack would be the second direct assault on Israel within six months. The first, in April, caused only minimal damage, as most projectiles were intercepted due to early warnings and support from the USA, the United Kingdom, France, and Jordan. Under US pressure, the Israeli response at that time was limited to a strike against an Iranian air force base. According to the US official, a similar attack to that of April is expected, but Israel anticipates a more substantial assault. The markets reacted sharply: oil prices rose by about 4%, gold and bonds also increased. The S&P 500 fell by more than 1%, while stocks of US defense companies like Northrop Grumman, Lockheed Martin, and RTX gained at least 2% each. The US military presence in the Middle East has been reinforced in response to the escalation, with an announcement that several thousand additional soldiers and combat jet squadrons will be deployed. In a conversation between US Secretary of Defense Lloyd Austin and his Israeli counterpart Yoav Gallant, the “serious consequences for Iran in the event of a direct military attack on Israel” were discussed. Israeli forces began “targeted ground operations” and airstrikes in the southern suburbs of Beirut overnight, leading to intense fighting. Hezbollah responded with a rocket attack, and millions of Israelis sought shelter in bunkers, according to the Israel Defense Forces. The conflict between Israel and Iran, supported by Hezbollah, has intensified after Hezbollah leader Hassan Nasrallah was killed in a massive airstrike in southern Beirut. Iran has announced retaliation for this incident as well as for the suspicion that Israel is behind the killing of the Hamas politician in Tehran. Israeli Defense Minister Gallant stated that the military is expanding its operations to dismantle Hezbollah's Radwan unit. Media reports from Lebanon speak of heavy shelling in four villages, and dozens of vehicles left border towns after the Israeli military urged residents to flee.