Reports are coming in: The first is that there was a radar battalion hit in Syria near the city of Izraa. The second is that there are 'explosions' near the city of Isfahan in central Iran. It's a major city of 2.2 million. Finally, there is now talk of intense warplane activity across parts of Iraq. Oil prices are up more than 1%. Update: More reports are coming in of strikes on Iran now with Sky News Arabia citing local media highlighting 3 large explosions in Isfahan, there is also talk of explosions in Natanz, Iran. It appears the strikes in Syria and Iran may both be from Iran. (full story)

Well, there were a few days there where it looked like everyone would settle down and no one else would get killed. I guess we were all naive. Israel appears to be striking Iran and at this point, the best we can hope for is that the damage is minimal and casualties are low or zero. And then we go back to hoping that Iran doesn't return fire. Signs are pointing to the closure of Iranian airspace but so far markets aren't freaking out too much. That could change quickly once we see the size and scope of the response. {chart} WTI crude oil is up 2.4%, trading at $84.60. Generally the trade here is to fade fear. It's ... (full story)