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Israel Says It Is Ready to Strike Iran’s Energy Network as U.S. Withholds Approval

U.S. refusal reflects concern that attacks on Iran’s energy system could prompt wider Gulf retaliation and disrupt global oil supplies.

Overview

  • Israel’s defense minister Israel Katz said Tuesday that Israel wants to hit Iranian energy facilities but the United States has refused to approve such strikes.
  • Katz said the Israel Defense Forces have been ordered to prepare contingency plans to act independently and that Israel would retaliate forcefully if Iran fires on Israeli territory.
  • Israeli officials and reporting point to a mid‑June operation that struck about 30 Iranian fuel depots as a precedent for targeting Iran’s energy infrastructure.
  • Markets and prediction markets have reduced the odds of a U.S.‑Iran diplomatic settlement in 2026 as investors price in higher geopolitical and oil‑supply risk.
  • Benjamin Netanyahu is set to discuss Iran with President Trump, a meeting that will test U.S. restraint versus Israeli pressure and shape near‑term risks to Gulf states, shipping through the Strait of Hormuz, and global fuel prices.