The shadow war between Iran and Israel has been exposed. What happens next?

“Both (Iran and Israel) are able at this point to claim victory and step down off the precipice, particularly since there were no Israeli civilians killed,” Yacoubian said.

The world was still waiting, however, for the result of an Israeli War Cabinet meeting on Sunday. Israeli hard-liners have pushed for a response, but others have suggested restraint, saying Israel should focus on strengthening budding ties with Arab partners.

“We will build a regional coalition and collect the price from Iran, in the way and at the time that suits us,” said Benny Gantz, a member of the War Cabinet.

Analysts say Iran sent a message that it would be willing to escalate and change its rules of engagement in its shadow war with Israel.

“It’s a warning shot, saying that if Israel breaks the rules, there are consequences,” said Magnus Ranstorp, strategic adviser at the Swedish Defense University.

Iran’s attack has further stoked fears of the war in Gaza causing regional havoc.

But Iran maintains that it does not seek all-out war across the region. Foreign Minister Hossein Amirabdollahian said in a post on X, formerly Twitter, that Iran has “no intention of continuing defensive operations” at this point unless it is attacked.

Iran stressed that it targeted Israeli facilities involved in the Damascus attack, not civilians or “economic areas.”

After Israel began its offensive in Gaza, Iran-backed groups were involved militarily while Tehran sat on the sidelines. Lebanon’s Hezbollah group fired rockets into northern Israel. Yemen’s Houthi rebels attacked Western ships on the Red Sea. An umbrella group of Iran-backed Iraqi militias attacked U.S. military positions in Iraq and Syria.

Now, Tehran is “willing to up the ante” without relying on proxies, said the director of the Carnegie Middle East Center, Maha Yahya.

Still, Iran only went so far.