JERUSALEM (Reuters) -Woken by air raid sirens, hurrying to bomb shelters, scouring travel sites for escape routes — thousands of tourists in Israel have found their holiday plans upended by the country's conflict with Iran.

The path to diplomacy appeared to narrow after officials called off talks that had been set for Sunday between Tehran and Washington on Iran’s nuclear program.

Crude oil futures jumped more than 3% Sunday after Israel struck two natural gas facilities in Iran, raising fears that the war will expand to energy infrastructure and disrupt supplies in the region. U.S. crude oil rose $2.72, or 3.7%, to $75.67 per barrel. Global benchmark Brent was up $3.67, or 4.94%, at $77.90 per barrel.

Israel’s El Al Airlines announced on Sunday that it has suspended all flights until at least June 19, with additional cancellations to many European cities extending to June 23, due to the ongoing conflict between Israel and Iran.

Israel forces have repeatedly hit Iran’s defenses. Prime Minister Benjamin Netanyahu said on Sunday that Israel had worked to “peel off the layers of protection” of Iranian defenses.

For more than three decades, Iran’s strategy was to surround Israel with heavily armed proxies, creating a deterrent wall so formidable that Jerusalem would never dare strike Iran’s nuclear facilities. And if Israel did strike, the logic went ...

JERUSALEM (Reuters) -Israel's annual inflation rate eased more than expected to 3.1% in May, official data showed on Sunday, although it is still slightly above target and the escalation of the country's conflict with Iran poses additional risks to the outlook.

In a shocking escalation, Iran launched a fresh wave of missile and drone attacks on Israel, lighting up the skies over Jerusalem. The assault, one of the heaviest in recent days, stunned residents as explosions echoed across the capital.