Markets Dump Then Rebound As Israel Retaliates To Iran In Oddly Toothless, Performative Response

SUMMARY: 

• Iran says its nuclear facilities remain unharmed: Reuters

• Situation in Iran's Isfahan is normal, no explosion taken place on ground: PressTV

• CNN: Two US oficials say Israel indicated they would not attack nuclear targets. US didn't "green light" this attack.

• Unconfirmed: IRGC states that Iran will target Israeli nuclear sites with counterattack.

• Iran Space Agency: "all that happened is a failed and humiliating attempt by Israel aviation" - via Sky News

• Iranian officials and outlets are claiming that all explosions heard tonight are due to interceptions and that no explosions have occurred "on the ground"

• Bloomberg: Israeli officials notified the US earlier today they planned to retaliate in the next 24-48 hours.

• Tehran's Imam Khomeini International Airport (IKA) tells passengers that all flights have been canceled and they should exit the airport.

• Fox News: Israeli strikes in Iran came from unmanned aircraft

• US claims IDF attacks in Iran were limited.

• Three large explosions heard in Isfahan south of Tehran, US officials confirm.

• The Natanz nuclear facility is located in Isfahan.

• Unconfirmed simultaneous explosions have also been reported in Syria and Iraq (Baghdad and Babil/Babylon province).

• Iran has established a no-fly-zone over its western region.

• Market reaction: initial panic selling, but gradually as it becomes clear that this is just a token "scripted" response to the token "scripted" initial attack by Iran - which achieved absolutely nothing - markets are rebounding.

Israel - having once again ignored Biden's pleadings not to escalate the already tense situation - is retaliating against Iran's weekend strike, which was itself a retaliation against Israel bombing Iran's embassy in Syria on April 1.

Moments ago futures dumped, oil prices spiked, and treasury yields slumped amid social media reports and Reuters headlines that there have been three "huge explosions" near the central Iran cities of Natanz (location of an Iranian nuclear power plant) and Isfahan (location of the Iranian Nuclear Technology Center which is suspected of being the center of Iran's nuclear weapons program), as well as simultaneous explosions in Iraq and Syria, where the Israel air force appears to be targeting pro-Iranian militias.

• IRANIAN MEDIA CONFIRMS AN ISRAELI ATTACK ON IRANIAN TERRITORY

• IRANIAN STATE MEDIA IS REPORTING THAT TONIGHT’S AIRSTRIKE BY THE ISRAEL AIR FORCE MAY HAVE TARGETED THE 8TH TACTICAL AIRBASE OF THE IRANIAN AIR FORCE, WITHIN ISFAHAN INTERNATIONAL AIRPORT, WHICH CONTAINS MULTIPLE SQUADRONS OF F-14 “TOMCAT” FIGHTER AIRCRAFT.

• ABC NEWS REPORTS THAT ISRAELI MISSILES HIT A SITE IN IRAN

• IRAN STATE MEDIA SAYS 'NO FLY ZONE' ESTABLISHED OVER WESTERN REGION

• IRANIAN MEDIA: 3 HUGE EXPLOSIONS WERE HEARD IN ISFAHAN, SOUTH OF TEHRAN

• JERUSALEM POST: SIMULTANEOUS EXPLOSIONS REPORTED IN IRAN, SYRIA, AND IRAQ ACCORDING TO INITIAL REPORTS

• IRAN'S FARS NEWS AGENCY SAYS EXPLOSIONS HEARD IN CENTRAL ISFAHAN AIRPORT, REASON UNKNOWN

• ISRAELI MISSILES HIT IRAN SITE, US OFFICIAL SAYS: ABC

Some more reports:

Here is Marco Rubio telling us more or less what happened:

A video of the explosions in Iran:

There have also been reports of drone activity over Iraq:

Flights above central Iran are diverting from their designations:

... as the airspace over the region is rapidly clearing:

Unconfirmed reports suggest that the Israeli airstrikes are targeting a building where a high level meeting was being held among groups supported by Iran and the IRGC:

The market reaction has been immediate, with S&P futures dumping initially but then, as speculation grows that this is another measured, scripted response to the measured, scripted initial attack by Iran, the market is starting to normalize fast.

... with oil initially surging, then dropping.

... and gold also first surged above $2400, only to slide right back...

... with Silver fading all the gains...

...and Treasuries are aggressively bid but they too are now fading.

Even as the Bitcoin algos reprice WW3... for the second time in 5 days.

And as traders brace for the worst, because even if Israel hopes to present a "measured" retaliation now it's a question of what Iran will do next, it once again appears that this was just the latest episode in the carefully scripted middle-eastern "war" soap opera.

More as we get it, until then, fear not: he is watching everything... closely.