--:-- Jessica Mendoza: Welcome to The Journal, our show about money, business, and power. I'm Jessica Mendoza. It's Monday, June 23rd.
--:-- [Discussion begins]
--:-- Jessica Mendoza: And we're coming up on a very big story. Iran fired missiles at a U.S. military base in Qatar. Officials said Iran also fired on Iraq. The attacks were in retaliation for a strike over the weekend that hit three of Iran's nuclear facilities, authorized by President Trump. Our colleague Shayndi Raice is here to break down what this means for Iran and the region.
--:-- Shayndi Raice: Thanks, Jessica. So, let's start with the basics. The Qatari Defense Ministry says that the Qatari Air Defenses successfully intercepted a missile attack targeting Al-Udid Air Base. Again, that is the largest U.S. air base in the Middle East.
--:-- Jessica Mendoza: That's a big deal. And it's not just the Qatari Air Defenses that intercepted the missiles. Iran launched missiles targeting an American military base in Qatar. Officials said Iran also fired on Iraq. The strikes were in response to U.S. attacks on Iranian nuclear facilities over the weekend, in support of Israel's war against Iran.
--:-- Shayndi Raice: That's right. And this is a huge escalation. The U.S. and Israel have been working together on this operation, and it's the first time they've coordinated on a military operation. That's never happened before.
--:-- Jessica Mendoza: So, how big of a deal was this U.S. strike? It was massive. It is the first time that the United States and Israel have coordinated on a military operation. That's never happened before.
--:-- Shayndi Raice: That's right. And it's a huge show of U.S. force and military power. This was something that only the United States could do. There's no other country in the world, including Israel, that has the capability to drop the kind of bombs on Iran that the United States dropped.
--:-- Jessica Mendoza: President Trump claimed the Fordow site and other key nuclear facilities were, quote, completely and totally obliterated. The UN's Atomic Energy Agency says the damage at Fordow was expected to be very significant, though the extent of the destruction at the underground facility is hard to determine.
--:-- Shayndi Raice: That's right. And it's become clear that the strikes have pushed Iran into a corner. Iran was not built to engage in this kind of warfare. It never envisioned the idea of a direct military confrontation between Israel versus Iran.
--:-- Jessica Mendoza: So, what does this mean for Iran? It's in a very difficult position. Iran was not built to engage in this kind of warfare. It never envisioned the idea of a direct military confrontation between Israel versus Iran.
--:-- Shayndi Raice: That's right. And it's not just the military aspect. Iran's economy is also suffering. The country is heavily dependent on oil exports, and the U.S. sanctions have had a big impact on its economy.
--:-- Jessica Mendoza: So, what are Iran's options? The easiest way out of this situation would be for Iran to come to the negotiating table and agree to limits on its nuclear program. But that's not going to be easy.
--:-- Shayndi Raice: That's right. Iran's foreign minister has signaled that diplomacy has proven useless. The Trump administration, he said, only understands, quote, the language of threat and force.
--:-- Jessica Mendoza: So, what else could Iran do? It could try to respond with a symbolic attack, like the one it launched today. Or it could try to escalate the situation further by attacking U.S. military bases or embassies in the region.
--:-- Shayndi Raice: That's right. Iran could also try economic warfare, specifically by choking off global access to a key trade waterway, the Strait of Hormuz.
--:-- Jessica Mendoza: That's a big deal. The Strait of Hormuz is a vital channel for more than a fifth of the world's oil supply. If it were to shut down, there would be a real constraint on the oil supply, which would cause oil prices to rise.
--:-- Shayndi Raice: That's right. And that would have a global impact and would probably hit the stock market.
--:-- Jessica Mendoza: So, what's next for Iran? It's in a very difficult position. It needs to decide whether to escalate the situation further or try to find a way out.
--:-- Shayndi Raice: That's right. And it's a very delicate balancing act. Iran needs to find a way to respond to the U.S. and Israeli attacks without escalating the situation further.
--:-- Jessica Mendoza: Thanks, Shayndi, for breaking down this complex situation for us.
--:-- Shayndi Raice: Thanks, Jessica.
--:-- Jessica Mendoza: And that's all for today, Monday, June 23rd. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode from Sudarsan Raghavan. Thanks for listening. See you tomorrow.
