Iranian missiles wounded 115 people in the country’s south on Saturday... Iranian ballistic missiles struck the southern Israeli cities of Dimona and Arad on Saturday night, injuring 115, including 12 with serious injuries. On Sunday morning, one person was killed when the Iranian-backed Hezbollah terrorist group in Lebanon targeted Israel’s Galilee Panhandle.
After
speaking with the mayors of Dimona, Arad and Rishon Letzion—where an
Iranian cluster munition damaged eight sites, including a closed
kindergarten, without causing injuries—Prime Minister Benjamin Netanyahu
on Saturday night reiterated the importance of entering bomb shelters
in accordance with the instructions of the Israel Defense Forces’ Home
Front Command.
“We are determined to continue striking our enemies
on all fronts,” said Netanyahu, calling it “a very difficult evening in
the campaign for our future.”
Iran has launched a long-range missile for the first time since the start of Operation Roaring Lion, with an estimated range of around 4,000 km. The capability puts major cities like London, Paris, and Berlin within reach.
The Israeli IDF had previously warned that Iran was working to expand its missile range despite denials from the regime.
Officials say this development reinforces concerns that Iran’s threat is no longer regional, but extends far beyond the Middle East.
AI OVERVIEW
Based
on recent reports, Iran has demonstrated capabilities to develop
long-range missiles, with intelligence and recent tests highlighting
potential 4,000-kilometer (not 400km) range ballistic missiles, such as
the Khorramshahr-4 or new two-stage systems
. These missiles can threaten European capitals and U.S. bases in the region, exceeding their stated 2,000km limit.
Key Aspects of Iran's Long-Range Missile Capabilities
Reported 4,000 km Capability:
Recent developments, including potential tests of new, long-range
systems, suggest Iran is testing missiles that could cover 4,000 km,
placing cities like London and Berlin within reach.
Khorramshahr-4 Missile:
This liquid-fueled missile is considered one of Iran's most advanced,
featuring a large payload capability (roughly 1,500 kg) that can be
adjusted for increased range.
Satellite Launch Vehicles (SLVs):
The U.S. Defense Intelligence Agency has noted that Iran could use
space launch technology to create a militarily viable ICBM by 2035.
Intermediate Range Threats:
While developing longer-range options, Iran already possesses a large
arsenal of short-range (300 km) and medium-range (up to 2,500-3,000 km)
missiles.
Technological Advancement:
Iran has invested in hypersonic ballistic missiles (e.g., Fattah
series) and is enhancing its missile technology through lighter
materials and improved, though sometimes inaccurate, guidance systems.
Iran's
advancements are widely viewed as a threat to international security,
specifically prompting concern about their ability to target regions far
beyond the Middle East.
Iran
has launched two missiles at the joint UK-U.S. base at Diego Garcia in
the Indian Ocean, about 4,000 km away. Such a distance is well within
the range separating Tehran from many European capitals. According to
U.S. officials who talked to the Wall Street Journal, one ballistic
missile reportedly failed because of a malfunction and did not reach the
base, whilst the other was engaged by a U.S. destroyer utilizing an
SM-3 interceptor.
“We are not pre-committing to a particular rate path,” she said,
adding that the ECB stands ready to adjust its tools if needed to ensure
inflation returns sustainably to target.
“The ECB is unlikely to show the same patience it did during the last
inflation shock," warned Sylvain Broyer, Chief EMEA Economist at
S&P Global Ratings.
According to Roman Ziruk, Senior Market Analyst at global financial services firm Ebury, this is a "hawkish tilt" from the ECB.
"The ECB is more likely to raise rates rather than lower them this year, with cuts now seemingly out of the question,"he said.
"The rules of the game have changed. Escalating geopolitical tensions
have altered the outlook, reopening the possibility that interest rate
hikes could return to the agenda,"
---said Joe Nellis, Professor of Global
Economy at Cranfield School of Management and MAH adviser.
Market reactions
The euro rose 0.5% to 1.1520 versus the US dollar on Thursday, while
European equity markets turned negative as oil and gas prices surged.
Brent crude traded at around $111 per barrel, up roughly 55% since
the war began, while European natural gas prices jumped 13% to €61 per
megawatt-hour. Both surged sharply overnight after Iran’s attack on
Qatar’s Ras Laffan LNG complex intensified fears of supply disruptions.
Germany’s DAX fell 2.39% to 22,940 points by 16:00 in Frankfurt, while the pan-European Euro STOXX 50 dropped 1.8% to 5,635.
German Bund yields edged lower to 2.95% after touching an intraday peak of 3%, the highest level since September 2023.
What comes next With the Hormuz situation unresolved and oil markets prone to sudden repricing on any escalation involving Iran, the ECB faces an unusually wide distribution of outcomes ahead of its 30th April meeting. Lagarde's message was essentially one of watchful patience: the bank has the tools, the data framework, and — for now — the runway to wait and observe before acting. . .
ht 2026 The Associated Press. All rights reserved.
ECB holds rates, warning Middle East tensions and oil risks
could push inflation higher.
Baseline sees 2.6% in 2026, but energy
shocks could lift it to 3.5% or 4.4%, depending on how long supply
disruptions persist.
European Central Bank President Christine Lagarde delivered one of
her most direct warnings yet about the potential inflationary
consequences of the ongoing conflict in Iran.
Speaking after Thursday’s Governing Council meeting which left
interest rates unchanged, Lagarde said the war"has made the outlook
significantly more uncertain" and will have "a material impact on
near-term inflation."
Energy shock at centre of the ECB's revised inflation outlook
Lagarde stressed that the war is creating “upside risks for
inflation”, primarily through oil and gas markets, with immediate
consequences for consumer prices.
The ECB’s latest staff projections show inflation averaging 2.6% in
2026, before easing to 2.0% in 2027 and 2.1% in 2028.
The upward
revision compared with previous forecasts is largely driven by higher
energy prices linked to the Middle East conflict.
Core inflation, which excludes energy and food, is also expected to
remain slightly above target over the forecast horizon, reflecting
indirect effects from energy costs filtering through the economy.
However, Lagarde made clear that this scenario rests on relatively contained energy disruptions.
In a more adverse scenario — involving stronger and longer-lasting
disruptions to oil and gas supply through the Strait of Hormuz —
inflation could rise to 3.5% in 2026.
In a severe scenario, where energy prices remain elevated for longer, headline inflation could reach as high as 4.4% in 2026.
The ECB is particularly alert to so-called second-round effects,
where an initial energy shock spreads beyond fuel costs into wages,
services and core inflation.
"If persistent, higher energy prices may lead to a broader increase
in inflation through indirect and second-round effects — a situation
which requires close monitoring," Lagarde said.
Growth revised down: Stagflationary risks rising
The inflationary pressure from energy markets arrives at precisely the wrong moment for the euro area economy. GDP growth has been revised down to just 0.9% for 2026 — barely above stagnation — as the war weighs on real incomes, business confidence, and consumption.
Lagarde reiterated that a prolonged conflict would simultaneously lift
inflation and weaken economic activity, complicating the ECB’s policy
response.
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