How the Israel-Iran standoff took a turn and what’s next after a pivotal 24 hours

The past 24 hours have been pivotal in the Israel-Iran conflict, with the U.S. entering the war — a move that has left investors and world leaders on edge.

On Saturday night, American B-2 Spirit stealth bombers and submarines struck three of Iran’s most critical nuclear sites: Fordo, Natanz, and Isfahan.

The strikes represented the first direct action that the U.S. had taken against Iran since the country was hit by Israeli attacks earlier in June.

Israel and Iran had been trading strikes since Israel preemptively attacked it on June 13, killing key Iranian military figures and nuclear scientists.

Since then, the world has seen reactions from around the globe over the strikes, including from Iran itself, which has called the strikes “outrageous” and vowed “everlasting consequences”. Iran’s parliament has also voted to close the critical Strait of Hormuz, endangering energy supplies.

Here’s a roundup of the events since the U.S. attacks happened, and what could happen next.

At 7.50 p.m. Eastern Time, U.S. President Donald Trump announced on Truth Social that the U.S. had conducted a “very successful attack” on the three nuclear sites, and said “NOW IS THE TIME FOR PEACE!”.

About an hour later, a U.S. official told Reuters that B-2 Spirits were involved in the bombings. These bombers are believed to be the only planes which have the capability to deliver the weapons powerful enough to penetrate the underground facility at Fordo.

The International Atomic Energy Agency later confirmed that all three sites were hit.

Following the strikes, world leaders reactions poured in, among which was Israeli Prime Minister Netanyahu who thanked Trump for the strikes, calling it a “bold decision.”

The IAEA released two updates after the strike, saying that Director General Rafael Grossi would call an emergency meeting of the IAEA Board of Governors to discuss the decision.

The agency said it was also informed by Iranian regulatory authorities that there has been no increase in off-site radiation levels after the attacks.

The UN Security Council also met on Sunday to discuss the attack, as Russia, China and Pakistan proposed that the UNSC adopt a resolution calling for an immediate and unconditional ceasefire in the Middle East.

China strongly condemned the U.S. attack on Iran and on nuclear facilities supervised by the IAEA, China’s U.N. Ambassador Fu Cong said at a UNSC meeting on Sunday.

While U.S. officials, including U.S. Vice President JD Vance and Defense Secretary Pete Hegseth said that the attacks were not meant to enact regime change in the Islamic Republic, Trump himself raised the possibility of that happening.

The U.S. president posted on Truth Social that “It’s not politically correct to use the term, “Regime Change,” but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn’t there be a Regime change??? MIGA!!!”

Oil prices jumped more than 2% on Sunday evening, and continued to rise to just under $80 per barrel for Brent crude, and just under $75 for West Texas Intermediate crude.

The rise comes after Iran’s parliament backed closing the critical Strait of Hormuz, where about 20% of the world’s oil transits. The U.S. Energy Information Administration has described it as the “world’s most important oil transit chokepoint.”

However, the final decision to close the Strait lies with Iran’s national security council, according to the report.

The Strait currently remains open, but analysts have told CNBC that oil prices could test $100 a barrel if Iran closes the Strait and Western forces try to reopen it by force.

U.S. Secretary of State Marco Rubio on Sunday had also called for China to prevent Iran from closing the Strait.

China is Iran’s largest oil customer, accounting for the bulk of Iranian oil exports, and maintains friendly relations with the country.

The world now waits for Iran’s response, after Iranian Foreign Minister Abbas Araghchi said in a statement on X that his nation “reserves all options” in responding to the attack.

“The events this morning are outrageous and will have everlasting consequences,” Araghchi said.

Iranian deputy foreign minister Majid Takht Ravanchi told German media that the country will continue its uranium enrichment program, and that “no one can tell us what to do”, according to Reuters citing Iranian media Tasnim News.

Shane Oliver, chief economist and head of investment strategy at Australian bank AMP, said in a Monday note that if Iran only undertakes “a few token moves” and “surrenders unconditionally” as Trump demands, “then oil prices will quickly settle down and shares will rally.”

Oliver noted that this was basically what happened when the U.S. led-coalition entered the first and second Gulf Wars.

However, if Iran undertakes actions such as hitting U.S. bases in the region, the U.S. is likely to retaliate and this would keep markets on edge, he added.

Vandana Hari, founder of energy intelligence firm Vanda Insights, told CNBC’s “Squawk Box Asia” on Monday that the risk of closure remains “absolutely minimalistic.”

This is because if Iran follows through, it runs the risk of alienating its neighboring oil-producing countries and customers, including China, which accounts for the majority of Iranian oil exports, according to the U.S. Energy Information Administration.

There is “so very, very little to be achieved, and a lot of self-inflicted harm that Iran could do” if it closed the Strait, Hari said.