Key facts
- The U.S. conducted new strikes on Iran, targeting over 80 sites including air defense systems and command networks.
- Washington revoked Iran's oil sales license after three tankers were hit in the Strait of Hormuz.
- Iran's military vowed a 'crushing response' to the U.S. strikes, labeling them an act of aggression.
- The U.S. dollar reached its highest level in a week against the Japanese yen.
- New Zealand's dollar appreciated after the Reserve Bank of New Zealand raised interest rates and signaled further tightening.
The U.S. dollar maintained its position near a weekly high as the United States and Iran engaged in renewed military exchanges. Washington also rescinded a license that permitted Iran to sell oil, following projectile strikes on three tankers in the Strait of Hormuz. Concurrently, New Zealand's currency experienced a significant increase after its central bank implemented an interest rate hike and indicated a path toward further monetary tightening.
The U.S. Central Command confirmed the completion of a new series of strikes targeting Iran, impacting over 80 sites. These actions included Iranian air defense systems, command and control networks, coastal radar installations, and anti-ship missile capabilities, alongside more than 60 Islamic Revolutionary Guard Corps small boats in and around the Strait of Hormuz. The U.S. military stated the objective was to degrade Iran's capacity to continue attacking international commerce.
Iran's top joint military command responded by promising a 'crushing response' and accusing the U.S. of a 'blatant act of aggression.' Tehran warned against U.S. interference in the management of the Strait of Hormuz.
The ceasefire in the Iran war, which began on February 28, has been described as fragile. The conflict, initiated by U.S. and Israeli strikes on Iran and subsequent Iranian retaliatory strikes, has led to thousands of fatalities and millions displaced, while also causing oil prices to surge and unsettling global markets.
Oil prices saw a notable increase, with Brent crude jumping 3.2% to $76.54 a barrel and U.S. benchmark crude rising 3.2% to $72.72 a barrel. Asian shares presented a mixed performance, with Tokyo's Nikkei 225 losing 1.2% and South Korea's Kospi shedding 5.6%. Conversely, Taiwan's Taiex rose 0.6%, and Hong Kong's Hang Seng gained 2.9%. Chinese AI model startup Zhipu saw its shares climb 14% on its first day of trading in Hong Kong.
U.S. equity futures showed little change. On Tuesday, Wall Street experienced a downturn, with the S&P 500 falling 0.4%, the Nasdaq composite dropping 1.2%, and the Dow Jones Industrial Average declining 0.2%. Major technology stocks such as Advanced Micro Devices, Intel, and Micron Technology saw significant drops. SpaceX also fell 6.8% on its first day of trading after being included in the Nasdaq 100 index.