The United States launched dozens of strikes on Iran early Wednesday in retaliation for Tehran's attacks on commercial ships in the Strait of Hormuz, raising fears of a renewal of full-scale war in the Middle East.

President Donald Trump told reporters at a NATO summit in Ankara that he believes the memorandum of understanding (MoU) with Iran is "over," calling peace talks a "waste of time" though he might allow them to continue.

Brent crude rose 6% to $78 a barrel, European stocks fell 1.6%, and the dollar strengthened as investors weighed inflation risks. The US Treasury reimposed sanctions on Iranian oil, revoking a waiver granted under the MoU.

Iran's Islamic Revolutionary Guard Corps (IRGC) said it retaliated by striking 85 US military targets in Bahrain and Kuwait, with sirens sounding in both countries. One IRGC member was killed by "enemy drones."

Iran's Foreign Ministry condemned the US attacks as a "flagrant violation" of the MoU and UN Charter, warning that Iran's armed forces will defend its sovereignty. Parliament Speaker Mohammad Ghalibaf called the strikes a major violation.

NATO Secretary-General Mark Rutte backed the US actions, saying they were necessary. Gulf states and Egypt condemned Iran's retaliatory strikes on Bahrain and Kuwait as violations of sovereignty. Analysts suggest both sides may seek de-escalation despite heightened tensions.

Source: www.aljazeera.com