Israel could be plotting to target Irans sprawling oil island where 90 per cent of the countrys exports flow as the IDF is peparing to exact revenege following last nights missile barrage attack.
The Israeli military branded the multiple strikes a severe and dangerous escalation and warned there will be consequences, as tensions in the Middle East continue to spiral.
Now, in retaliation to the launch of almost 200 Iranian missiles into Israeli territory, the country is planning a major response which is likely to destory Irans most crucial oil export hub - Kharg Island.
Known as Irans Oil Island, up to 95 per cent of the countrys oil exports travel through its doors, meaning Israel could target the terminal in the Persian Gulf with the aim of denying the country oil revene.
Located just 15miles off Irans Northern coast, Kharg Island was once the worlds largest offshore crude oil terminal and a hit could carry devastating consequences.
A view of oil facilities on the Kharg island on the Persian Gulf about 1,250km south of Tehran on February 23, 2016
Located just 15miles off Irans Northern coast, Kharg Island was once the worlds largest offshore crude oil terminal and a hit could carry devastating consequences
Up to 95 per cent of the countrys oil exports travel through Kharg Island
Such an attack will likely end with a short-term crude price spike of around five per cent as it carries the potential for widespread international disruption - primarily to Irans exports to China, the worlds largest importer of oil.
Iran is the third biggest producer of crude oil in the OPEC group of oil-producing countries and is heavily reliant on its oil and gas exports to prop up its ailing economy amid years of sanctions.
Former Israeli Intelligence official and regional analyst Avi Melamed told MailOnline the Iranian strike was likely to provoke a significant counterstrike, warning that Israels response this time will likely be broader and less restrained than it was in the wake of Irans unprecedented direct strike in April.
But Irans armed forces joint chief of staff Gen. Mohammad Bagheri said this morning that the Revolutionary Guard (IRGC) was prepared both defensively and offensively to repeat its missile attack with multiplied intensity, should Israel seek retribution.
If the Zionist regime, that has gone insane, is not contained by America and Europe and intends to continue such crimes or do anything against our sovereignty or territorial integrity, tonights operation will be repeated with much higher magnitude and we will hit all their infrastructure, he said.
With crude supplies in the region under threat, oil prices have sky-rocketed by more than two per cent.
Iran is believed to be producing more than a staggering three million barrels a day, placing it at a five-year high.
Helima Croft, an analyst at RBC Capital Markets, an investment bank, told CNBC: There has been a lot of complacency about this war.
Ballistic missiles being launched from Iran against Israel and intercepted in the sky. Over 150 ballistic missiles had been launched from Iran against Israel and intercepted in the sky across the country
A view of lighting flares fired by Israeli army at the Netzarim Corridor area in the central part of the Gaza Strip, Gaza on October 01
Iran launched a missile attack on Israels commercial hub Tel Aviv
An Israeli mobile artillery unit fires a shell from the northern border towards Lebanon on Wednesday morning
Artillery is fired by the Israeli Army into Lebanon, amid cross-border hostilities between Hezbollah and Israel, as seen from Jish, northern Israel October 2, 2024
Iranian state TV broadcasted the moment it launched nearly 200 missiles towards Israel
She added that amid the ongoing chaos, traders have mostly ignored the threat of oil supply disruptions .
We do need to think about a scenario where Iranian oil supplies are at risk, Croft warned.
US lawmakers have backed a strike against Iranian oil production.
Senator Lindsey Graham, of South Carolina, said he would urge the Biden administration to coordinate an overwhelming response with Israel, starting with Irans ability to refine oil.
In a statement, he said Irans oil refineries should be hit and hit hard.
The threat comes after Iran last night fired a barrage of nearly 200 ballistic missiles at Israeli territory with Israeli military now preparing a significant retaliation to the shocking attack.
The IDF said it intercepted a large number of the ballistic missiles thanks to the countrys Arrow and Davids Sling missile defense systems, and assistance from US destroyers and Jordanian interceptors in the region.
Israel Defence Forces Rear Admiral Daniel Hagari said: There were a small number of hits in the centre of Israel, and other hits in Southern Israel.
The majority of the incoming missiles were intercepted by Israel and a defensive coalition led by the United States.
Our defensive and offensive capabilities are at the highest levels of readiness.
A firefighter uses foam to extinguish blaze in Hod HaSharon in the aftermath of an Iranian missile attack on Israel, on October 2, 2024
Dust and smoke billow from the site of an overnight Israeli airstrike in Beiruts southern suburb of Shayyah on October 2, 2024. At least five Israeli strikes hit Beiruts southern suburbs early October 2
Our operational plans are ready. We will respond wherever, whenever, and however we choose, in accordance with the directive of the government of Israel.
Iran and its proxies have been attacking Israel since the 7th of October on 7 fronts. Iran and its proxies seek the destruction of Israel.
The Israel Defense Forces will continue doing everything necessary to defend the State of Israel and protect the people of Israel.
Israeli Prime Minister Benjamin Netanyahu also told a meeting of his security cabinet Tuesday that: Iran made a big mistake tonight – and it will pay for it
The regime in Iran does not understand our determination to defend ourselves and our determination to retaliate against our enemies… They will understand.
Hezbollah this morning unleashed more than 100 rockets into Israel, with the group claiming it has targeted soldiers massing on the border as the Israeli Defence Forces ordered more troops and armoured units to join its ground invasion of Lebanon.
The militant group said this morning it had confronted Israeli forces who were infiltrating the southern village of Adaisseh and forced them to retreat, claims Israel has not commented on.
The Iran-backed group also said that its fighters had targeted a large infantry force in Misgav Am across the border with rockets and artillery, as well as troop gatherings in three other locations, one with Burkan short-range ballistic missiles.
Meanwhile in Gaza, Israeli strikes killed at least 32 people overnight as the military launched ground operations in the hard-hit city of Khan Younis.
Israel has continued to strike what it says are militant targets across Gaza nearly a year after Hamas October 7 attack ignited the war, even as attention has shifted to Lebanon and growing tensions with Iran.