US and Iran exchange attacks as lull in war appears over

The US and Iran found themselves back on a war footing on Wednesday after the most significant exchange of fire in weeks, with Washington threatening more devastating strikes.

The US 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, with Iran hitting some Arab states and multiple targets near the Strait of Hormuz.

Jordan's armed forces said their air defence systems dealt with 13 ballistic missiles that entered the kingdom's airspace, 10 of which were intercepted and three fell in remote areas. Bahrain said Iranian drones were intercepted and destroyed.

The clash ends a months-long stalemate since July in which both sides have largely held fire but showed no appetite for talks.

Asian stocks slumped on Wednesday after the renewed US airstrikes pushed oil prices to a five-week high and drove the US 10-year Treasury yield to its highest level in almost three years, extending a bond market selloff across global markets.