Israel vows Iran will 'pay the price' as attacks continue for a fourth day

Tehran volition "pay the price" for its caller rocket onslaught against Israel, the Jewish state's defence curate warned Monday, arsenic markets braced for a 4th time of ramped-up struggle betwixt the determination powers.

Fire exchanges person continued since Israel's Friday onslaught against Iran, with Iranian media reporting Tehran's latest strikes deed Tel Aviv, Jerusalem and Haifa, location to a large refinery. CNBC has reached retired to relation Bazan for remark connected the authorities of operations astatine the Haifa plant, amid reports of harm to Israel's vigor infrastructure.

Iran's Revolutionary Guard said overnight it deployed "innovative methods" that "disrupted the enemy's multi-layered defence systems, to the constituent that the Zionist aerial defence systems engaged successful targeting each other," according to a connection obtained by NBC News.

Israel has wide depended connected its highly businesslike Iron Dome rocket defence system to fend disconnected attacks passim determination conflicts — but adjacent it tin beryllium overwhelmed if a ample fig of projectiles are fired.

The caller hostilities are front-of-mind for investors, who person been weighing the likelihood of further escalation successful the struggle and spillover into the broader oil-rich Middle East, amid concerns implicit crude supplies and the cardinal shipping lane done the Strait of Hormuz connecting the Persian Gulf and the Gulf of Oman.

Oil prices retained the gains of caller days and astatine 09:19 a.m. London time, Ice Brent futures with August transportation were trading astatine $73.81 per barrel, down 0.57% from the erstwhile trading session. The Nymex WTI declaration with July expiry was astatine $72.7 per barrel, 0.38% lower.

Elsewhere, however, markets showed archetypal signs of shrugging disconnected the latest hostilities aboriginal connected Monday.

Spot prices for cardinal safe-haven plus golden retreated aboriginal morning, down 0.42% to $3,417.83 per ounce aft nearly notching a two-year-high earlier successful the session, with U.S. golden futures besides down 0.65% to $ 3,430.5

Tel Aviv stock indices pointed higher, with the blue-chip TA-35 up 0.99% and the wider TA-125 up 1.33%.

European banal markets opened higher Monday, meanwhile, and U.S. banal futures were besides successful the green.

Luis Costa, planetary caput of EM sovereign recognition astatine Citigroup Global Markets, signaled the muted absorption could be, successful part, attributed to hopes of a brisk solution to the conflict.

"So markets are obviously, you know, bearing successful caput each imaginable scenarios. There are evidently perchance precise atrocious scenarios successful this story," helium told CNBC's "Europe Early Edition" connected Monday. "But determination is inactive a mode retired successful presumption of, you know, a faster solution and bringing Iran to the table, oregon a abbreviated continuation here, of a precise surgical and aggravated onslaught by the Israeli army."

As of Monday morning, Israel's nationalist exigency work Magen David Adom reported 4 dormant and 87 injured pursuing rocket strikes astatine 4 sites successful "central Israel," reporting collapsed buildings, occurrence and radical trapped nether debris.

Accusing Tehran of targeting civilians successful Israel to forestall the Israel Defense Forces from "continuing the onslaught that is collapsing its capabilities," Israeli Defense Minister Israel Katz, a adjacent longtime state of Prime Minister Benjamin Netanyahu, said successful a Google-translated social media update that "the residents of Tehran volition wage the price, and soon."

The IDF connected Sunday said it had successful crook "completed a wide-scale question of strikes connected galore limb accumulation sites belonging to the Quds Force, the IRGC and the Iranian military, successful Tehran."

CNBC could not independently verify developments connected the ground.

The U.S.' effect is present successful focus, fixed its adjacent enactment and arms proviso to Israel, the unexpected cancellation of Washington's latest atomic deal talks with Iran, and President Donald Trump's historically hard-hitting stance against Tehran during his archetypal term.

Trump, who has been pushing Iran for a woody implicit its atomic program, has weighed successful connected the conflict, opposing an Israeli connection to termination Iran's ultimate leader, Ayatollah Ali Khamenei, according to NBC News.

Discussions astir the struggle are expected to instrumentality spot during the ongoing gathering of the G7, encapsulating Canada, France, Germany, Italy, Japan, the U.K. and the U.S., on with the European Union.

— CNBC's Katrina Bishop contributed to this report.