Markets calm despite Israel and Iran exchanging fire

Israel began its military strikes with a surprise attack on Friday that targeted the top echelon of Iran's military command and damaged its nuclear sites. The move occurred after the United Nations nuclear watchdog declared for the first time in 20 years that Iran was in breach of its non-proliferation obligations.

Iran has vowed retaliation and reiterating Tehran's official stance against developing nuclear weapons. Iran has always said its nuclear program is peaceful, although the Board of Governors of the U.N. International Atomic Energy Agency declared last week that Tehran was in violation of its non-proliferation obligations. Iran's foreign ministry and atomic energy organization said the findings were politically motivated and lacked technical or legal foundation.