Airspace, Oil Prices, All-Out War: 5 Major Impacts Of Iran-Israel Conflict

NDTV

14-06-2025

New Delhi:
Major disruptions to commercial airlines costing millions of dollars, a spike in oil prices worldwide, and the risk of all-out war in the West Asia region, which could escalate into a global military conflict - these are among the top impacts of increasing Israel-Iran tension.
Tel Aviv and Tehran have fired multiple volleys of missiles at each other starting with the former's 'Operation Lion' attack early Friday, which Israeli Prime Minister Benjamin Netanyahu called a "targeted military operation to roll back the Iranian threat to (the) very survival" of his nation.
Israel said its attacks targeted military installations, nuclear sites, commanders and nuclear scientists, and reportedly killed senior armed forces leaders, including the Islamic Revolutionary Guard Corps chief, Hossein Salami; and the Chief of Staff of the armed forces, Mohammad Bagheri. Iranian nuclear scientists were also among those believed to be killed.
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Iran retaliated with a volley of missiles, some of which were reportedly intercepted by American defences, according to officials from that country. Most were neutralised by the Iron Dome but some snuck through, including one that may have hit the Israel Defense Forces HQ in Tel Aviv.
5 Big Impacts Of Iran-Israel Tension
Oil Price Spike: The international oil market has reacted sharply to this latest West Asian conflict, jumping by over nine per cent Friday after Israel's first two rounds of missile attacks.
Brent crude prices surged by over $6 to cross a five-month high of $78 per barrel.
According to a report by Emkay Global, Iran produces around 3.3 million barrels per day (mbpd) of crude oil (i.e., around three per cent of global production) and exports around 1.5 mbpd, with China being the main importer (80 per cent), followed by Turkey.
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Iran is also on the northern side of the Strait of Hormuz/Persian Gulf through which 20 mbpd+ of oil trade flows, with Saudi Arabia and the UAE among those also shipping through here.
In the past Tehran has warned of blocking this route.
For now oil markets remain well supported after another higher than expected production hike for July, meaning Iranian supply cuts can be tolerated for a while.
Airspace Closure: After Israel's attack Friday, a timelapse video from flight-tracking website Flightradar24 showed the immediate impact on the commercial aviation industry.
This time-lapse of air traffic over the Middle East shows how civilian airspace cleared after Israel's operation against Iran began. pic.twitter.com/aap8ilC2MI
— Brady Africk (@bradyafr) June 13, 2025
There were almost zero planes over Iran, with streams of passenger jets from Europe to Asia skirting around either side of the country. In fact, live visuals from the hours after the attack showed aircraft rerouting in real-time, turning out of Iranian skies for other corridors.
Aviation Route Disruptions: The mass diversions, and the avoidance of Iranian airspace since, will likely have a ripple effect on international aviation, with longer flights, potential delays and increased fuel costs for multiple carriers operating in and out of West Asia and further east.
As an example, an Air India Mumbai-London flight returned after three hours in the air. Air India said the situation in Iran and the closure of its airspace had led to the flight returning to origin.
Air India also said over a dozen of its flights alone had been either diverted or returned.
Both countries have declared a lockdown of their airspaces.
Nuclear Talks With US "Dead": After Israel's Friday attacks Tehran called any dialogue with Washington over its nuclear programme "meaningless", and even accused the latter of 'authorising' the missile strikes on its territory.
"The other side (i.e., the US) acted in a way that makes dialogue meaningless. You cannot claim to negotiate and at the same time divide work by allowing the Zionist regime (Israel) to target Iran's territory," Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, said.
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Iran had earlier accused the US of being complicit in Israel's attacks, but Washington denied the allegation and told Tehran at the United Nations Security Council it would be "wise" to negotiate over its nuclear programme. US President Donald Trump told Reuters that his team and he had prior knowledge of the Israeli attacks but declared they still saw room for an accord with Iran.
Multiple War Fronts: What started with a horrific terrorist attack by Hamas gunmen on October 7 two years ago has spawned multiple war fronts across the West Asia region after Israeli attacks on Iran-backed armed groups like Hezbollah in Lebanon and the Houthis in Yemen.
Nations across West Asia have called on all sides to stand down; Saudi Arabia's Foreign Ministry said Tel Aviv's attacks were a "clear violation of international laws and norms".
Missiles, though, continue to be fired by both sides and the fallout is affecting neighbouring countries. Israel-intercepted Iranian missiles, for example, have exploded in southern Syria and Jordanian jets have been scrambled to deal with similar issues over their skies.
If this conflict escalates it could even force the Americans to become involved, more directly than they already are; unnamed US officials have said they helped intercept Iranian missiles.