ISRAELI SOURCE SAYS NO ISRAELI ACTIVITY IN IRANIAN AIRSPACE, ACCORDING TO N13.

An Israeli source cited by N13 denied any Israeli military activity in Iranian airspace, easing immediate concerns over a direct military escalation between the two nations. The statement reduces the risk of a supply disruption in the Strait of Hormuz, a key transmission channel for oil markets, which had been pricing in heightened geopolitical risk. Iranian and Israeli-related financial assets, including regional sovereign bonds and defense equities, are particularly sensitive to shifts in conflict expectations. Lower perceived conflict intensity may support risk appetite in emerging markets and energy markets, where volatility had spiked on escalation fears. Traders will watch for Iran’s official response or any new military posturing in the coming days as a key catalyst for renewed risk repricing.

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