JERUSALEM/DUBAI/WASHINGTON--President Joe Biden warned Prime Minister Benjamin Netanyahu the U.S. will not take part in a counter-offensive against Iran, an option Netanyahu's war cabinet favours after a mass drone and missile attack on Israeli territory, according to officials. The threat of open warfare erupting between the arch Middle East foes and dragging in the United States put the region on edge, triggering calls for restraint from global powers and Arab nations to avoid further escalation. "The Middle East is on the brink. The people of the region are confronting a real danger of a devastating full-scale conflict. Now is the time to defuse and de-escalate," United Nations Secretary-General Antonio Guterres told a Security Council meeting called on Sunday in response to the strikes. Deputy U.S. Ambassador to the U.N. Robert Wood called on the council to unequivocally condemn Iran's attack, as he said Washington would explore additional, unspecified measures at the United Nations to hold Iran accountable and warned against further aggression. "Let me be clear: if Iran or its proxies take actions against the United States or further action against Israel, Iran will be held responsible," he said. As Washington stressed its desire to avoid escalation, Secretary of State Antony Blinken and Defense Secretary Lloyd Austin spoke to counterparts including in Saudi Arabia, Turkey, Egypt and Jordan, stressing the need to avoid escalation, the importance of a coordinated diplomatic response, and emphasizing that the United States will continue to support Israel's defense. Israeli officials said Netanyahu's five-member war cabinet favored retaliation in a meeting on Sunday, although the panel was divided over the timing and scale of any such response. Markets were nervous about the risk of a broader war but calm in early Asia trading, with oil prices lower, gold higher and the dollar holding steady. Iran launched the attack over a suspected Israeli strike on its embassy compound in Syria on April 1 that killed top Revolutionary Guards commanders and followed months of clashes between Israel and Iran's regional allies, triggered by the war in Gaza. However, the attack by more than 300 missiles and drones caused only modest damage in Israel. Most were shot down by Israel's Iron Dome defense system and with help from the U.S., Britain, France and Jordan. The only serious injury reported within Israel was a 7-year-old who was hurt by shrapnel. There also was little serious property damage reported. Authorities said an Israeli Air Force base was hit but continued to operate as normal. Two senior Israeli ministers signalled on Sunday that retaliation was not imminent and that Israel would not act alone. "We will build a regional coalition and exact the price from Iran in the fashion and timing that is right for us," centrist minister Benny Gantz said ahead of a war cabinet meeting. Defence Minister Yoav Gallant also said Israel had an opportunity to form a strategic alliance "against this grave threat by Iran, which is threatening to mount nuclear explosives on these missiles, which could be an extremely grave threat," he said. Iran denies seeking nuclear weapons. Gantz and Gallant are Israeli war cabinet members with decision-making powers. Israel remained on high alert, but authorities lifted some emergency measures that had included a ban on some school activities and caps on large gatherings. Drone and missile interceptions cost around 4.5 billion shekels ($1.2 billion), according to Israel's Channel 13 News, which said Washington funded some of the cost. Iranian army chief of staff Major General Mohammad Bagheri said on television, "Our response will be much larger than tonight's military action if Israel retaliates against Iran," and told Washington that its bases could also be attacked if it helped Israel retaliate.
