Iran has put to death a civil defence manager convicted of spying for Israel, the judiciary’s Mizan news agency says.

Iran executed a civil defence official convicted of spying for Israel, escalating tensions between the two regional adversaries. The incident risks further destabilizing an already fragile geopolitical environment in the Middle East, potentially triggering retaliatory actions or heightened intelligence operations, which could tighten regional risk premiums. Energy markets and equities in Israel may face increased volatility due to elevated security concerns, while Iranian domestic assets could see renewed downward pressure amid international scrutiny. The episode underscores the vulnerability of regional supply chains and energy infrastructure to asymmetric threats, affecting investor sentiment toward frontier markets in the Gulf. Traders will watch for any official statements from Israeli security agencies or Iranian military responses in the coming days as a near-term catalyst for risk reassessment.

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