Follow the latest news after Israel launched strikes at Iran, a dramatic escalation in long-running tensions between the two countries.

The strike comes after President Donald Trump said the U.S. was "fairly close" to reaching a nuclear deal with Iran.

Israel launched a wave of unprecedented strikes on Iran shortly before sunrise Friday morning, hitting key sites in the nation’s nuclear program.

Supreme Leader Ayatollah Ali Khamenei swiftly vowed retaliation, and soon after the strikes Iran launched more than 100 drones toward Israel, according to Israel.

Israel attacked Tehran early Friday and killed many of the country’s top military leaders and scientists. The United States said it was not involved in the strikes.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

German Foreign Minister Johann Wadephul had to change his trip in the Middle East, dropping a stop in Israel, after the country launched a barrage of strikes across Iran earlier on Friday.

An aggressive counterattack risks escalation. But giving in to U.S. and Israeli demands is an unlikely alternative.

Global air traffic has been disrupted following Israel’s strikes on Iran Friday, with several major airlines suspending flights to and from locations in the Middle East and rerouting their planes to avoid much of the region’s airspace.