US pounds Iran, Tehran strikes back at bases in biggest exchange since July

WASHINGTON/DUBAI — On Wednesday, tensions between Iran and the United States reached a new high as both nations engaged in a significant exchange of fire since July. U.S. forces targeted Iran's southern coast, while Iran retaliated by striking American bases across the region. The United States signaled its intention to launch even more devastating strikes.

Iran accused Washington of mistakenly targeting a wedding party, resulting in the deaths of four people and injuries to dozens. The health minister of Iran later confirmed that the latest wave of U.S. strikes resulted in 18 casualties, with 108 others wounded. Asian and European stocks plummeted in response to the airstrikes, although Wall Street opened higher as investors turned their attention to advancements in artificial intelligence.

Oil prices experienced a slight increase in a highly volatile session, marked by earlier highs not seen since July, as concerns grew over the potential impact of the conflict on the global economy. The U.S. military reported striking air defenses, radar systems, maritime assets, mine-laying capabilities, and communications sites on Tuesday.

Iran reported hits on several targets near the Strait of Hormuz. Reports indicated that the recent conflict may be the most intense confrontation between Tehran and Washington since July.