No Missile Attack Against Iran: Iranian Official

Iran has claimed that the explosions heard in Isfahan were a result of the activation of Iran's air defence systems, Reuters reported.

An official told the news agency that no missile attack was carried out against Iran. Three explosions were heard near an army base in the central city of Isfahan, as per Iran's Fars news agency. Iranian state TV stated that around midnight, three drones were spotted in the sky over Isfahan, prompting the activation of the air defense system, which successfully destroyed the drones.

The situation in Isfahan was later confirmed to be normal, with no ground explosions reported. The Israeli military did not offer any comment on these reports.

Meanwhile, Israel carried out an attack on Iran, the news agency reported citing three individuals familiar with the situation.

Iranian state media also reported early Friday that Iranian forces had destroyed drones, following Iran's recent drone strike on Israel. The United States was not involved but was informed by Israel before the attack, one source told Reuters.

Israel had earlier said that it would retaliate against Iran's weekend attack, which included numerous drones and missiles, following a suspected Israeli strike on its embassy compound in Syria. The majority of the Iranian drones and missiles were intercepted before reaching Israel.

Prior to Friday's strike, Iranian President Ebrahim Raisi had warned Israel of a "severe response" to any attack on Iranian soil. Iran also urged the United Nations Security Council to compel Israel to cease further military actions against its interests. The U.N. secretary-general cautioned that the Middle East was facing a "moment of maximum peril."

Market reactions were significant, with Asian shares and bond yields declining while safe-haven assets such as gold and crude oil saw an increase. Brent crude futures rose by 2 per cent to $88.86 a barrel, the dollar strengthened, and gold prices increased by 1 per cent.

S&P 500 futures, however, dropped by 1 per cent. Iran's state television assured that nuclear facilities, where Iran claims to conduct peaceful activities but are suspected by the West of being weapons-related, remained unharmed.