Israel - Iran : USA gets Involved

On Friday as Iran and the E3 group consisting of European Foreign ministers met, a hope of a diplomatic solution was revitalised. This hope came crashing down as the USA on Saturday night bombed all three nuclear facilities in Iran using its best bombers. The most crucial facility in them was Furdow which was unharmed till now. 

The real and immediate impact was Iran closing its door to a diplomatic solution, though the USA still mentioned that it was open to one. The Gulf nations protested the USA's actions and are worried that it would trigger a wider escalation in the region. 

Financial markets, and especially crude oil, opened volatile but have now reduced. The main question is how Iran replies to such an attack and when it happens. 

The first call by the Iranian parliament was to close the Strait of Hormuz and withdraw from the Nuclear Proliferation Treaty ( NPT ). Both these actions approved by the National Security Council will have major impacts on the Global economy.

Whether these scenarios do actually happen and in what ways are they implemented will result in the level of impact. But more crucial would be any attack on the USA might escalate it into a new direction that would result in new risk premiums in the markets and economies.