Iraq requested Iran not to target United States assets on Iraqi territory, according to AFP

Iraq requested Iran not to target United States assets on Iraqi territory, according to AFP

Tensions between the U.S., Israel, and Iran have reached a critical juncture, with Iraq requesting Iran not to target U.S. assets on Iraqi territory. This escalation follows a series of events that have heightened geopolitical risks in the region, including the withdrawal of U.S. military personnel and the threat of military retaliation from Iran.

The Pentagon has ordered the withdrawal of troops and non-essential staff from embassies in Baghdad, Kuwait, and Bahrain as tensions spike between the U.S., Israel, and Iran. The U.S. Middle East envoy, Steve Witkoff, is set to meet with Iranian Foreign Minister Abbas Araghchi in Oman on Sunday for further discussions. Meanwhile, Iran's defense minister has expressed hope for the ongoing nuclear deal talks but warned of military retaliation if attacked [1].

The latest development involves Israel's attack on Iran's capital, Tehran, targeting nuclear and military sites. The attack comes as tensions have reached new heights over Tehran’s rapidly advancing nuclear program. The Board of Governors at the International Atomic Energy Agency censured Iran for the first time in 20 years after it refused to work with inspectors. Iran immediately announced it would establish a third enrichment site and swap out some centrifuges for more advanced ones [2].

The U.S. Secretary of State, Marco Rubio, has warned Iran not to target U.S. forces in retaliation. The U.S. has also begun pulling some diplomats from Iraq’s capital and offering voluntary evacuations for the families of U.S. troops in the wider Middle East. Iraq's ministry of transportation has announced a temporary closure of Iraqi airspace and complete suspension of air traffic [2].

The potential impact of a military conflict between Israel and Iran cannot be understated. A confrontation could have significant implications for global markets, political analysts, and economists. However, multiple analysts suggest that a military confrontation is still likely to be averted for now. The recent partial evacuation orders may be part of the choreography of pressure ahead of the upcoming U.S.-Iran nuclear talks [1].

Investors and financial professionals should closely monitor these developments, as geopolitical risks can significantly impact markets. The threat of military retaliation and the ongoing nuclear negotiations could lead to further volatility in oil prices and other commodities. Additionally, the closure of airspace and the potential disruption of supply chains could have economic consequences.

References:
[1] https://www.cnbc.com/2025/06/12/trump-wanted-an-iran-deal-fast-now-he-may-get-military-confrontation.html
[2] https://apnews.com/live/israel-iran-attack