IAEA probes attack on Iran nuclear plant after 8 nights of US strikes

The IAEA said Sunday it is investigating reports that an attack struck the construction site of Iran's Darkhovin nuclear power plant, though the facility contained no nuclear material and poses no radiological risk.

"The facility was in its very early construction stages and was devoid of nuclear materials during our last inspection," the IAEA said in a statement, calling for military restraint near all nuclear sites.

The attack came as the US military completed its eighth consecutive night of strikes against Iran, targeting coastal surveillance and air defense facilities, maritime capabilities, and missile and drone storage sites, according to US Central Command. Brent crude has risen as the Strait of Hormuz — which handles about 21% of global oil trade — remains a flashpoint after Iran's Islamic Revolutionary Guard Corps closed the waterway on July 12.

The widening conflict threatens to disrupt global energy supplies and has already pushed Gulf states including Kuwait, Bahrain and Jordan into the crossfire. Kuwait reported a second attack on a power and desalination plant in as many days, while two US service members were killed in Jordan on July 17.

Darkhovin and Bushehr: Two Nuclear Sites in the Crosshairs

The Darkhovin plant, located in southern Iran near the Iraqi border, dates back to before the 1979 revolution when French investment first launched the project. France withdrew after the revolution, and subsequent Chinese investment also fell through before construction could restart, according to the World Nuclear Association. Iran's Atomic Energy Organization said groundworks had begun as of December 2022, though construction had not officially started as of March.

Separately, satellite imagery analyzed by Al Jazeera's open-source unit revealed new damage inside Iran's Bushehr nuclear power plant complex — the country's only operating nuclear reactor — following US strikes between July 7 and July 12. The 915-megawatt facility, connected to Iran's grid in September 2011, has been struck by projectiles multiple times this year, with the IAEA recording incidents on March 17, March 24, March 27 and April 4. In each case, Iranian authorities reported the reactor continued operating normally.

Market Fallout and the Risk Premium

The escalation has injected a significant risk premium into energy markets. The last time the Strait of Hormuz faced a sustained closure threat — during the 2019 tanker attacks — Brent crude spiked about 15 percent over three weeks before stabilizing. The current conflict has already drawn in Gulf Cooperation Council states, with Kuwait's power and water infrastructure directly targeted and Bahrain intercepting multiple Iranian aerial attacks.

US President Donald Trump dismissed Iran's decision to abandon the interim memorandum of understanding signed last month, telling NewsNation he "couldn't care less." Iran's Supreme Leader Mojtaba Khamenei called Trump's signature "worthless and unreliable," accusing Washington of repeatedly violating the agreement.

The diplomatic track appears moribund. A flurry of Pakistani and Qatari mediation efforts has given way to pessimism among regional diplomats, according to analysts tracking the conflict. With both sides showing no willingness to de-escalate and the Strait of Hormuz effectively closed to commercial traffic, the risk of a broader regional war — one that could push oil prices significantly higher and disrupt supply chains across the Gulf — continues to mount.

This article is for informational purposes only and does not constitute investment advice.