The U.S. has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel, according to a senior White House official.

The U.S. is actively supporting preparations to defend Israel against the possible attack, which would carry severe consequences for Iran, said the official, who asked not to be identified.

The warning comes after Israeli forces moved into southern Lebanon in an escalation of its campaign against Tehran-backed Hezbollah. An Israeli military spokesman said that it hadn’t detected any launches yet.

Oil prices surged after news of the potential strike. Gold and Treasuries also rose.

Troops began what Israel said were “targeted ground raids” shortly before midnight local time alongside airstrikes in Beirut’s southern suburbs, and the army later reported “intense fighting.” Hezbollah fired a salvo of rockets in response and millions of Israelis have moved to shelters, the Israel Defense Forces has said.

Israel’s confrontation with Iran through Hezbollah escalated on Friday after the assassination of the group’s leader, Hassan Nasrallah, in a massive airstrike in southern Beirut.

Iran has vowed to strike Israel in retaliation for that attack, as well as the killing of Hamas’ political leader while in Tehran, although its response has far been restrained.

©2024 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.