The United States threatened more devastating strikes. Iran accused Washington of hitting a wedding party, killing five people and wounding dozens.

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Asian and European stocks fell after the renewed U.S. airstrikes, which pushed oil prices back up to levels unseen since July, compounding the economic impact of a global sell-off in bonds as disrupted energy supplies fuel inflation worldwide.

The U.S. military's Central Command said it struck Islamic Revolutionary Guard Corps air defences, radar systems, maritime assets, mine-laying capabilities and communications sites on Tuesday. Iranian media reported hits on multiple targets ​near the Strait of Hormuz — the narrow waterway where Tehran has threatened tankers attempting to pass without its permission.

Iran responded by striking what it said were U.S. assets in Bahrain, Jordan, Kuwait and Iraq, and said ​its aim was now to drive U.S. forces out of the vast network of military bases they have maintained for decades across the Middle East.