New york: The international credit rating agency Fitch Ratings warned Monday that US public finance institutions face heightened cyber risks amid the ongoing conflict involving Iran.

According to Anadolu Agency, Fitch said the attacks launched by Israel and the US against Iran on Feb. 28 could trigger an increase in cyber retaliation targeting US public sector entities. The agency noted that Iranian state-backed actors, hacktivist groups, and independent attackers may increasingly target US government institutions and critical infrastructure.

"Risks include distributed denial-of-service attacks, financially motivated campaigns, and attacks that seek to cause physical disruption or destruction. Attacks on infrastructure such as power or water systems can create downstream risks for other sectors," it said.

Regional escalation has intensified since Israel and the US launched the joint attack on Iran, killing more than 1,200 people, including Supreme Leader Ayatollah Ali Khamenei, according to Iranian authorities. Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries that are home to US military assets.