Iran acknowledges drone attack by Israel and says it failed

Iranian state media confirmed an attack by Israel in the early hours of Friday and said the “sabotage” operation involving drones had failed.

Israel launched a retaliatory strike on Iran following last week’s missile and drone barrage from Tehran, according to two U.S. officials, though media from both countries appeared to downplay the severity of the incident.

An explosion was heard early Friday in Isfahan, Iran’s third-biggest city, Fars news agency reported. Nuclear facilities located there are safe, state television and the United Nations’ nuclear watchdog said.

The Israeli government, which rarely comments on specific military actions linked to Iran, hasn’t confirmed the strike.

Flights were suspended in Isfahan and the Iranian cities of Tehran and Shiraz as well as airports across the country’s western borders, but those restrictions were soon eased.

The incident follows days of frantic diplomacy from the U.S. and European nations in which they tried to convince Israeli Prime Minister Benjamin Netanyahu not to respond too aggressively, if at all, to Saturday night’s Iranian attack. Their main concern is to avoid a wider war in a region already roiled by the Israel-Hamas conflict and which could send oil prices above $100 a barrel.

Crude and gold initially jumped in early trading on Friday, but later pared their gains as reports suggested the apparent attack was far from extensive. A senior Iranian military official also said Tehran had already responded to Israeli threats, and didn’t blame the Jewish state for the latest incident.

Isfahan is home to around 2 million people and several military bases and facilities. It’s believed to have been one of several launch sites for Iran’s attack on Israel on Saturday night.

The New York Times reported a military air base near Isfahan was struck.

Israel notified the U.S. on Thursday it planned to retaliate in the next 24-48 hours, two American officials said to Bloomberg. They asked not to be identified discussing private conversations. Spokespeople for the National Security Council and the Pentagon declined to comment.

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