Israel-Iran conflict: 330,000 flee capital, oil price falls 4%

June 17, 2025
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In a dramatic turn of events yesterday, the Islamic Republic of Iran signalled its willingness to pursue a ceasefire in its ongoing war with Israel, even as heavy Israeli air raids continued to pound critical targets in and around Tehran, including the headquarters of Iran’s state television.

Witnesses described a deafening explosion followed by chaos in surrounding neighborhoods. ‘All we could see was smoke and broken glass’, said a Tehran resident. ‘People were running, children were screaming. We thought it was the end’.

The ongoing bombardment has triggered a mass evacuation of over 330,000 residents from the capital, with local authorities designating ‘red zones’ around critical military and nuclear installations.

Meanwhile, the international markets reacted swiftly to signs of possible de-escalation, with global oil prices falling by nearly 4% yesterday afternoon, after trending upward earlier in the day.

Traders appear encouraged by reports of Iran’s diplomatic outreach and a potential pause in hostilities.

Financial analysts noted that while the risk of full-scale regional war has not been eliminated, ‘the prospect of a ceasefire—however tentative—has calmed fears of prolonged disruption to oil supply routes through the Strait of Hormuz’.

Iran’s diplomatic overtures, according to credible media reports, are being channeled through Gulf Arab states—namely Qatar, Saudi Arabia, and Oman—which have been quietly engaging both Tehran and Tel Aviv in a bid to de-escalate a rapidly expanding conflict.

Tehran has made it clear that any potential truce is contingent on the United States staying out of the battlefield.

Despite its appeal for dialogue, Iran is still absorbing heavy losses. Israeli warplanes, under the banner of ‘Operation Rising Lion’, launched a fresh wave of attacks Monday morning, targeting missile stockpiles, suspected nuclear infrastructure, and notably, the national broadcasting complex of Islamic Republic of Iran Broadcasting (IRIB) in central Tehran.

The strike on IRIB dealt a symbolic and psychological blow to the regime, effectively knocking off national broadcasts for several hours and sending shockwaves through the capital.

Long queues formed at fuel stations, roads were choked with fleeing families, and emergency shelters filled to capacity as panic gripped the city.

Military sources believe the Israeli strikes have severely degraded Iran’s air defense systems, rendering its ability to counter further incursions increasingly ineffective.

The assessment has lent urgency to Iran’s move to explore diplomatic channels while projecting continued strength on the battlefield.

According to media reports, Iran is proposing an immediate ceasefire followed by a structured return to nuclear negotiations, facilitated by regional mediators.

In exchange, it is suggesting a temporary freeze on uranium enrichment, expanded IAEA monitoring, and a halt to ballistic missile testing.

Tehran insists that Washington must refrain from any military involvement or coercive tactics.

Inside Israel, Prime Minister Benjamin Netanyahu remains unmoved by Iran’s truce initiative, vowing that military operations would not cease until Iran’s ‘nuclear and missile threat is neutralised’.

Speaking during a press briefing yesterday, Netanyahu said: ‘This is not the time for half-measures. We will finish what we started’.

U.S. President Donald Trump, who continues to exert influence on the crisis, added his voice to the calls for caution.

In a separate address yesterday, he warned against escalation, stating: ‘If this continues, we risk World War III’.

Trump also reportedly rejected Israeli overtures for U.S. support in a covert operation to assassinate Iran’s Supreme Leader Ayatollah Ali Khamenei, warning that such a move could lead to an uncontrollable spiral of violence across the Middle East.

The war, now in its fourth day, erupted after Iran allegedly launched a cyberattack on Israeli nuclear command systems, prompting Israel to retaliate with a series of aerial strikes.

Since then, Iran has fired more than 150 missiles into Israel, targeting cities like Tel Aviv and Haifa. While Israel’s Iron Dome and David’s Sling systems have intercepted the majority of these projectiles, dozens have slipped through, causing civilian casualties and infrastructural damage.

So far, official reports indicate that 24 Israelis and 224 Iranians have died, with hundreds more injured on both sides. Hospitals in Tel Aviv and Tehran are overwhelmed, and both nations remain under strict emergency conditions.

Amid the military escalation, diplomatic activities have intensified behind the scenes. Sources say Oman has prepared a draft peace framework that includes a phased withdrawal of forces, mutual de-escalation pledges, and the establishment of a multinational monitoring mechanism under the auspices of the United Nations.

Meanwhile, the United Nations and European Union have welcomed Iran’s gesture, with U.N. Secretary-General António Guterres calling for ‘an immediate and unconditional ceasefire to prevent further civilian suffering’.

Despite the glimmer of hope, the situation on the ground remains perilous.

Israeli jets continue to hover over Iranian airspace, and Tehran has not officially ordered a halt to its retaliatory missile operations. As the war teeters on the edge of broader conflagration, the next 48 hours may determine whether diplomacy prevails—or the Middle East descends deeper into conflict.

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