US, Iran Exchange Fire; Markets React

The US and Iran exchanged fire in the Persian Gulf, threatening a fragile ceasefire and escalating tensions as both sides engage in diplomatic talks to end the three-month war. The US targeted Iranian military sites after Iran fired on three American destroyers navigating the Strait of Hormuz. President Trump warned Iran of harsher retaliation if they do not accept a US peace plan soon. Meanwhile, Asian stocks retreated from record highs due to renewed concerns over energy supplies, with the Strait of Hormuz remaining under a double blockade. Market analysts debated whether investors were underestimating geopolitical risks.