Iranians and their Arab neighbours feared a return of war on Wednesday after the biggest exchange of fire between Tehran and Washington since July, with US forces striking Iran’s southern coast and Iran firing at American bases across the region.
The United States threatened more devastating strikes. Iran accused Washington of hitting a wedding party, killing four people and wounding dozens.
Asian and European stocks tumbled after the renewed U.S. airstrikes, which pushed oil prices back up to levels unseen since July.
The US military said it struck air defences, radar systems, maritime assets, mine-laying capabilities and communications sites on Tuesday.
Iran reported hits on multiple targets near the Strait of Hormuz.
Iran responded by striking what it said were US assets in Bahrain, Jordan, Kuwait and Iraq, and said its aim was now to drive US forces from the vast network of military bases they have occupied for decades across the Middle East. —Reuters
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