Israel allegedly conducted a strike on Iranian territory on Friday, the latest escalation in the conflict between the two long-standing adversaries, which has shifted from covert confrontations to overt hostilities, raising concerns of wider regional entanglement.
Initially, Iranian media reported explosions, but an Iranian official informed Reuters that these were caused by the activation of air defense systems.
State media confirmed the downing of three drones over Isfahan.
Israel's leadership and military remained silent early on Friday. A senior Iranian official told Reuters that Iran had no immediate plan to strike back, while state media had a subdued response to the attack.
According to a source familiar with the situation, the United States was notified before Israel's attack, which came days after Iran launched a retaliatory strike on Israel with drones and missiles, most of which were intercepted, in response to the airstrike on the Iranian Embassy compound in Damascus on April 1, which was attributed to Israel.
Washington and other global powers urged Israel to refrain from responding or to ensure any retaliation was limited to prevent a broader conflict.
The senior Iranian official expressed doubt about Israel's responsibility, stating, "The foreign source of the incident has not been confirmed. We have not received any external attack, and the discussion leans more toward infiltration than attack," speaking on condition of anonymity.
In most official comments and news reports, there was no mention of Israel. State television featured analysts and pundits who appeared dismissive of the scale of the incident.
An analyst on state TV stated that mini drones flown by "infiltrators from inside Iran" had been shot down by air defenses in Isfahan.
Iranian state TV reported, "Shortly after midnight, three drones were observed in the sky over Isfahan. The air defense system became active and destroyed these drones in the sky." Senior army commander Siavosh Mihandoust was quoted by state TV as saying air defense systems had targeted a "suspicious object."
Iranian President Ebrahim Raisi had warned Israel before the strike that Tehran would deliver a "severe response" to any attack on its territory.
Iran told the United Nations Security Council that Israel "must be compelled to stop any further military adventurism against our interests" as the U.N. secretary-general warned that the Middle East was in a "moment of maximum peril."
Shares and bond yields sank in Asia trade while safe-haven currencies, gold and crude oil jumped. Brent futures surged as much as 4.2% on concerns Middle East supply could be disrupted before shedding some gains. MSCI's broadest index of Asia-Pacific shares dropped 2%, after earlier diving as much as 2.6%, and U.S. stock futures pointed 1% lower.
The International Atomic Energy Agency said there was no damage to Iran's nuclear sites in the alleged attack by Israel, confirming Iranian reports.
Tehran says its nuclear work is peaceful, but the West believes it is aimed at building a weapon. The Natanz nuclear site, the centerpiece of Iran’s uranium enrichment program, is in Isfahan province.
Iran closed its airports in Tehran, Shiraz and Isfahan after the attack and also cleared flights from the western portion of its airspace for a few hours after the attack, according to FlightRadar24. By 4:45 a.m. GMT, the airports and airspace had reopened.
The U.S. Embassy in east Jerusalem restricted U.S. government employees from traveling outside east Jerusalem, greater Tel Aviv and Beersheba "out of an abundance of caution."
In a statement on its website, the embassy warned U.S. citizens of a "continued need for caution and increased personal security awareness as security incidents often take place without warning."