Oil prices jumped to above pre-war levels after the US and Iran traded fire.
Tehran said it had hit 85 US military targets in the Gulf in response to American strikes, which came after Iran attacked tankers in the Strait of Hormuz; the US has also revoked a sanctions waiver that allowed Tehran to sell its oil internationally.
Negotiations to agree a longer-term peace deal have paused until after the funeral of Iran’s former supreme leader, Ali Khamenei, and were already strained by periodic violence and incompatible demands: Iran wants to maintain control of the strait, which the US rejects, while Washington wants Tehran to end its missile program and support for proxy groups.
