Sudden collective plunge! Iran launches massive missile attack!

Middle East Energy Facilities Hit by Large-Scale Attacks!

According to the latest reports, Iran’s Islamic Revolutionary Guard Corps said that in the past 24 hours, Iran launched large-scale missile strikes targeting multiple sites in Israel’s Haifa Bay area, including oil refinery facilities, power systems, ports, and railways, and during the strikes no missiles were seen being effectively intercepted. Meanwhile, Saudi Arabia’s large petrochemical industrial facilities have also been reported to have been hit over a wide area.

According to CCTV News, on the 6th, the U.S. side said it was pessimistic about the mediator parties, because it felt that Iran “yielded” before the last deadline set by U.S. President Trump and thus reopened the Strait of Hormuz—while the hope for a U.S.-Iran ceasefire agreement was “fading.”

These reports once again affected global market sentiment. South Korea’s KOSPI index plunged during the trading session and then turned lower, after having risen by 2.65% earlier. Japan’s Nikkei 225 index is now down 0.27%, after having risen by nearly 1% earlier. U.S. stock index futures also tumbled across the board; as of the time of writing, Nasdaq futures are down 0.66%, S&P 500 index futures are down 0.52%, and Dow Jones index futures are down 0.34%.

Gold and silver also tumbled again. Spot gold fell by more than 0.70% at one point, dropping to a low of 4,615 U.S. dollars per ounce; spot silver fell by more than 1% at one point. As of the time of writing, the declines for both spot gold and spot silver have narrowed somewhat.

Iran: Haifa in Israel Has Been “Fully Struck”

According to a message released in the early hours of the 7th by Iran’s Islamic Revolutionary Guard Corps, Mousavi, commander of the IRGC Aerospace Force, said that within the past 24 hours, Haifa, a northern city in Israel, has been “fully struck,” and no missiles were intercepted.

On social media, Mousavi said that in the past 24 hours, Iran launched large-scale missile strikes against multiple targets in the Haifa Bay area, including oil refinery facilities, power systems, ports, and railways, and during the strikes no missiles were seen being effectively intercepted. People were evacuated from parts of northern Israel.

According to Xinhua News Agency, on the 6th the IRGC said in a statement that on that day it launched the 98th-wave offensive of the “True Promise-4” operation, with targets including Israel’s strategic centers in northern and southern Tel Aviv, Haifa, and chemical enterprises and factories in Beersheba, as well as IDF bases in Petah Tikva.

On the 7th local time, Iran fired a new round of missiles toward the areas of Beersheba, Dimona, Arad, and Ophakim in southern Israel. The Israel Defense Forces said that it monitored missiles being fired by Iran toward Israeli territory, and that its defense systems are intercepting the threats. Air-raid sirens were sounded in Israel’s Negev region.

Also, according to CCTV News citing information from the U.S. side, U.S. officials said the hope for a U.S.-Iran ceasefire agreement was “fading.” Some U.S. officials said that before the last deadline set by Trump at 20:00 U.S. Eastern Time on the 7th arrives, the U.S. and Iran’s positions were “too far apart to narrow.” At the same time, Arab officials familiar with the situation said that Iranian officials have told the mediator parties that even if negotiations with the United States make progress, they expect the United States to continue attacking Iran, and Israel will also continue to conduct airstrikes against Iran to “remove” Iran’s senior officials.

Some U.S. officials said Trump is “not very optimistic” about the deal reached between the U.S. and Iran, and expects to issue the final order to strike Iran on the evening of the 7th U.S. Eastern Time. However, Trump’s thinking could change at any time depending on developments. Trump hopes to end the war, and he realizes that the U.S. public’s patience for further military actions is limited.

Prime Minister Urges Trump Not to Agree on a Ceasefire With Iran

Citing Israeli media, Xinhua News Agency reported on the 6th that Israeli Prime Minister Benjamin Netanyahu spoke by phone with U.S. President Donald Trump on the 5th, urging the U.S. not to agree to a ceasefire with Iran during the current stage of the war.

The report cited an Israeli official as saying that during the call, Netanyahu expressed “concerns about the possibility of the United States reaching a ceasefire agreement with Iran, and even pointed out the risks of such a move.”

The report said that during the call, Trump told Netanyahu that if Iran agrees to the U.S. demands, a ceasefire could be possible. Trump would not drop the demand that Iran hand over all enriched uranium, and he would not allow Iran to resume uranium enrichment activities.

Also, according to Israeli media reports, Netanyahu said at a cabinet meeting on the 5th that even if the United States agrees with Iran on a ceasefire agreement, Israel would not be asked to stop its military actions against Hezbollah in Lebanon.

Netanyahu issued a video statement on the 6th, confirming that he spoke by phone with Trump on the 5th. Netanyahu said that Israel destroyed Iran’s largest petrochemical plant, “systematically dismantling the money-making machine of the Islamic Revolutionary Guard Corps.” Israel will also continue to “remove” Iran’s senior officials.

Umud Shokri, an energy-industry strategist and a senior visiting fellow at George Mason University, said that U.S. President Trump’s threat to carry out airstrikes against Iran’s power grid would affect civilians across Iran. However, because Iran’s power grid is relatively dispersed, it would be difficult to completely cut off the supply of electricity to the military. He said, “The system’s geography is widely distributed, its power generation sources are diverse, and it uses an interconnected design—this gives it strong resilience against localized failures.”

Iran’s power grid is almost entirely driven by fossil fuels and consists of about 150 power plants. These plants generate power mainly by burning natural gas. The electricity output of Iran’s largest 15 to 20 power plants accounts for no more than 15% of the country’s total electricity generation.

Shokri pointed out that attacks on these power plants would almost certainly lead to nationwide rolling blackouts, because electricity demand in major cities would be prioritized. Critical services facilities such as hospitals and water-supply systems can rely on backup diesel generators to operate, but this is not a long-term solution.

Shokri said that destroying large power plants would require large-scale bombing operations, and Iran’s energy network would very likely still be able to compensate by redistributing electricity within the network. Many military bases also have backup generators or alternative power-supply systems.

New information has also emerged about the Strait of Hormuz. According to reports by overseas media, two loaded liquefied natural gas (LNG) cargo ships appear to have given up attempts to leave the Persian Gulf via the Strait of Hormuz and are now heading toward Qatar.

Vessel tracking data shows that the Al Daayen changed its intended destination to Ras Laffan in Qatar during the night of Monday and is currently heading west deep into the gulf. The Rasheeda is sailing in the same direction while showing that it is waiting for instructions. Both ships had previously stated that they would go to Pakistan.

Traders have been closely monitoring their movements because, since the end of February when the U.S. and Israel began attacks on Iran, no LNG has been shipped out through the strait. Last weekend, however, a seemingly empty LNG cargo ship passed through this vital waterway. Before the conflict broke out, about one-fifth of the world’s LNG came from the Persian Gulf, mainly from Qatar, but also a small amount from the United Arab Emirates.

The Al Daayen and Rasheeda are now heading west deep into the gulf, leaving the Strait of Hormuz.

Layout: Yang Yu Cheng

Proofreading: Peng Qi Hua