Israeli drones hit an Iranian military site in Isfahan causing little damage in a retaliatory strike, Bloomberg reported on Friday. Israel notified the US of the attack moments before it occurred, with diplomatic efforts by G7 leaders key to convincing Israel to limit the scope of its retaliation to last week’s drone and missile attack by Iran, Italy’s top diplomat Antonio Tajani told reporters on Friday. Iran has played down the effects of the attack and has signaled that it does not intend to retaliate. UN observers also confirmed that nuclear facilities in Isfahan were not damaged, Bloomberg added.

The attack caused airport closures and diversions: Airlines rerouted flights away from Iranian airspace, while also canceling, diverting, and recalling others, Reuters reported on Friday. Iran closed its airports in Tehran, Shiraz, and Isfahan after the attack, while also clearing flights in its western airspace, the newswire said, citing data from flight tracker FlightRadar24. Iranian airspace had reopened by 04.45 GMT on Friday.

Airlines steered clear: UAE’s Flydubai said it canceled Friday flights to Iran. Germany’s Lufathansa canceled flights to Erbil and Tel Aviv and extended the suspension of flights to Tehran, rerouting flights via Iraqi airspace, Reuters reports. Australia’s Qantas Airways rerouted flights between Perth and London to avoid Iran’s airspace, adding a fuel stop in Singapore, the airline said on Saturday. A roundup of some of the major disruptions to flights due to Israel’s weekend attack on Iran can be found here.

Some carriers are switching track:UK-based budget carrier EasyJet is suspending all flights to Israel through 27 October, and redeploying that capacity to summer hot spots, including Mallorca and Malaga, Bloomberg reported on Thursday, citing statements by the airline. EasyJet has taken a more cautious approach than WizzAir and Lufthansa, both of which were quick to resume flights to Israel. The strategy comes in response to an “evolving situation,” with bookings to other regional destinations such as Turkey and Egypt unaffected, EasyJet CEO Johan Lundgren said in a statement. The carrier also runs an all-Airbus fleet, and is unaffected by delays to deliveries on the back of Boeing’s safety crisis, the outlet also said.

ON THE WATER- Global shipping leaders have called on the UN to do more to protect merchant shipping in the region, following Iran’s seizure of the MSC Aires last week, Reuters reported on Friday, citing an open letter to UN Secretary-General Antonio Guterres. The letter called on the international body for an “enhanced co-ordinated military presence, missions and patrols in the region,” stressing that seafarers and the maritime sector are neutral and should not be dragged into political disputes.

UN officials did not respond to Reuters’ requests for comments.

AnIranianvessel, dubbed Behshad, which the US links to coordinating Houthi attacks, has redeployed away from the Red Sea, as Iran reshuffles its assets and prepares for a retaliatory strike by Israel, Bloomberg reported on Thursday. Analysts EOS Risk Group and Dryad Global have also linked the vessel to Houthi attacks against commercial shipping, with the Behshad seeing a US cyberattack earlier this year for providing the Houthis with intelligence, the outlet said. The Behshad was observed near the Strait of Hormuz on Thursday, signaling that it would arrive at Iran’s Bandar Abbas port later in the day, Bloomberg said citing tracking data it had compiled.

MARKET REAX-Freight, ins., and crew wages are likely to surge on the back of Israel’s attack on Iran,S&P Global reported on Friday, citing market sources. Loadings at Persian Gulf oil and refined product terminals continued normally on Friday, a local holiday, “but the situation is very fluid,” sources said. However, unless hostilities in the Middle East continue in a sustained manner, similar to the war in Ukraine, flows will continue, but will become more expensive as seafarers opt out or ask for higher wages, market sources added. A closure of the Strait of Hormuz will also see buyers turn to their strategic reserves and buy from oil exporters in the US and West Africa, a broker told the outlet.

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