Iran warns of expanded retaliation as Israel reportedly readies to attack

Israeli media reported that Prime Minister Benjamin Netanyahu’s security cabinet has directed the military to increase its readiness for a potential strike on Iran. The directives, which were made public after opposition leader Gadi Eisenkot criticized them, could lead to actions that trigger a wider war.

Eisenkot, who was offered the chance to form a new government by President Isaac Herzog after Netanyahu’s coalition lost its majority in October elections, warned against deploying the military without a direct and immediate threat.

Netanyahu, who is serving in a caretaker capacity, has insisted that the war on Iran will continue until the collapse of the government in Tehran.

Iranian threats

Iran’s security chief Mohsen Rezaei has issued a stark warning, stating that if the United States launches another war against Iran, every military base involved in the aggression, from West Asia to Europe, will be a legitimate target for Iran’s lethal strikes.

In Tehran, there are voices suggesting that if the current status quo persists, Iran may take pre-emptive action. Iranian Parliament Speaker Mohammad Bagher Ghalibaf has commented on the country’s determination to move beyond a state of "no war, no peace" through "sustainable deterrence" if negotiations fail.

Ghalibaf told Al Jazeera that the Strait of Hormuz will "never return" to its status prior to the US-Israel war on Iran and that "the ball is now in the American court".

He added that the primary obstacle to an agreement is a lack of trust in the United States.

US diplomatic efforts

Reports of Israeli preparations to attack Iran come at a time of intense diplomatic efforts to avert further conflict. US President Donald Trump has said he is prepared to return to waging war if a diplomatic track offered by Qatar fails to facilitate a deal between Washington and Tehran.

US Secretary of State Marco Rubio has claimed that the administration’s economic pressure campaign against Iran is proving so effective that a resumption of large-scale military operations is unnecessary.

Over the last few days, both the president and Marco Rubio have said, effectively, that large-scale military engagement is over. They do not see the need to restart it unless Iran crosses red lines.

Despite these statements, US forces continue to work around the clock to keep the Strait of Hormuz open for commercial shipping and to enforce the "ironclad" naval blockade against Iran, according to the US Central Command.

Oil market reaction

Oil prices rose about 1 percent on Wednesday after Tehran rejected a US proposal to transfer its stockpile of 60 percent enriched uranium to a third country.

Brent futures settled $1.27, or 1.39 percent, higher at $92.76, while US West Texas Intermediate crude gained 49 cents, or 0.57 percent, to $86.53.

In the previous session, oil prices had initially fallen by more than $3 a barrel after US officials played down the need for further military strikes against Iran.

Prices later pared some losses when an Iranian official said no talks were taking place between the two sides.