But from an economic perspective, the escalation doesn’t represent a crisis—yet. Johan Gott, cofounder of Prism, a consulting company specializing in political risk, says Iran’s stunning attack demonstrated that Tehran doesn’t have the capacity to damage the parts of Israel’s infrastructure and industry that are connected to the global economy,

Israeli Prime Minister Benjamin Netanyahu vowed late Tuesday to retaliate, and an Iranian commander threatened wider strikes on infrastructure if Israel did so. U.S. President Biden said Wednesday that he would not support an Israeli attack targeting Iran’s nuclear program.

The Israeli military said Tuesday that Iran has fired missiles at Israel, and air raid sirens sounded across the country as residents were ordered to remain close to bomb shelters. Israel and the United States have warned there would be severe consequences if Iran attacks.

Iran launched at least 180 missiles into Israel on Tuesday, the latest in a series of escalating attacks in a yearslong conflict between Israel and Iran and its Arab allies that threatens to push the Middle East closer toward a regionwide war.

Israeli Prime Minister Benjamin Netanyahu vowed on Tuesday that Iran would pay for its missile attacks against Israel, prompting warnings from Tehran of vast destruction if retaliated against. This escalation

Netanyahu also expressed condolences for those affected by a separate terrorist attack in Jaffa, linking it to Iran.