I'll use international humanitarian law to distinguish military vs non-military targets. I will resolve an ambiguous case by using my best judgement

I will only consider the initial attack(s). I.e. not further escalations

I will only consider attacks on Iranian soil

If there is any non-military target involved, the market will resolve as NO.

Collateral/unintended damage will not be considered unless it was directly targeted.

If Israel doesn't end up attacking Iranian soil this year, the market will resolve as NO.