by Jim Rickards, Daily Reckoning:

Not surprisingly, the stock market bounced back today after yesterday’s mini-crash — the “buy the dip” theme is deeply entrenched in today’s market.

But don’t make the mistake of thinking that stocks will continue on their way to record highs. There are too many red flags to ignore, although Wall Street would like you to ignore them.

Meanwhile, yesterday’s market swoon distracted people from a major developing story that I originally planned to address:

TRUTH LIVES on at https://sgtreport.tv/

We’re staring at the prospect of a major new Middle East war. We’re confronting a very dangerous situation with major implications for global markets.

Any day now, or even any minute now, Iran is expected to take strong military action against Israel. By the time you read this article, it may have already started.

At this point, it’s not a matter of if, but of when.

Israel Escalates Bigly Against Iran

Iran’s pending action is a response to two recent Israeli assassinations of key figures strongly linked to Iran:

• The first assassination killed a leader of Hezbollah, a key Iranian proxy. That occurred in Lebanon, Hezbollah’s base

• Less than 24 hours later, Israel assassinated the political leader of Hamas, Ismail Haniyeh. That assassination actually occurred in Iran itself, as Haniyeh was in Tehran to attend the swearing-in ceremony for Iran’s new president.

Israel hasn’t accepted responsibility for Haniyeh’s killing, but there’s little reason to believe it wasn’t Israel. It’s still not clear how the assassination actually occurred.

Some reports claim a missile killed him in the Tehran apartment in which he was staying. That means the missile would have been launched from within Iran, which raises a lot of questions.

Other reports say Haniyeh was killed by remotely detonated explosives, previously planted in the apartment by Israeli operatives, potentially with the collaboration of Iranian security agencies.

The conflicting claims aren’t insignificant. Under certain interpretations of international law, the use of explosives isn’t a casus belli, or a justification for war. But the use of a missile is.

Either way, I don’t think Iran appreciates that distinction.

Iran Vows “Harsh” Revenge

Iran has pledged “harsh” revenge for the two assassinations. Sources report that neighboring Arab states, along with the U.S., are pleading with Iran to limit its retaliatory action.

Jordan has even dispatched its senior diplomat to Tehran to argue for a limited response. That’s Jordan’s first official visit to Iran in over 20 years, which underscores the severity of the situation.

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