Oil prices extended a surge on Wednesday as the Middle East crisis burst back into the spotlight with US forces launching fresh strikes on Iran after an attack on three vessels in the Strait of Hormuz.The sudden flare-up has stoked concerns about peace talks between the foes as they look to end their conflict and fully reopen the crucial waterway.
It added to the dour mood on trading floors amid a fresh tech sell-off caused by questions over stretched valuations and when companies will start realizing profits from the eye-watering sums pumped into the AI sector in recent years.
US Central Command said the "powerful" strikes on Iran were in response to attacks on ships transiting the strait and would "impose heavy costs for targeting and attacking commercial shipping".
Three vessels were struck close to Oman, which had proposed a temporary transit corridor hugging its coastline -- an initiative opposed by Tehran as it seeks to impose fees on ships using the waterway.
Iran's foreign ministry accused the United States of repeatedly violating a memorandum of understanding agreed between the two sides, and threatened to "take decisive measures to protect its interests and national security".
