Iran has struck back at American forces after Washington's latest raid, according to Reuters, and Washington has launched new strikes of its own, turning a month-long shadow war into a direct exchange of airstrikes, as 7NEWS reports.
Markets moved: oil prices rose and US stocks fell as the conflict widened, according to finance.biggo.com.
Why it matters: Iran sits on the Strait of Hormuz, the chokepoint for roughly a fifth of the world's seaborne oil. A sustained exchange risks disrupted shipping, higher energy prices, and pressure on other Gulf states and Western governments to respond.
Hypothesis: this exchange could widen beyond a bilateral US-Iran fight if Gulf shipping is directly threatened. Supporting this: Iran's past leverage over the Strait of Hormuz and the immediate market reaction reported by finance.biggo.com. Against it: neither Reuters nor 7NEWS report any third country's forces or vessels involved so far.
What to watch: whether strikes continue past this exchange, whether either side targets shipping lanes directly, and whether other Gulf or Western powers signal involvement.