Irans utenriksdepartement has accused the United States of breaching a ceasefire agreement over the past 48 hours.
The U.S. has responded by labeling recent attacks as 'defensive' in nature.
This development comes amid ongoing tensions in the region, with both sides exchanging blame for escalating hostilities.
Markets have historically reacted sharply to such escalations, particularly in energy and defense sectors.
The situation could influence oil prices and investor sentiment, especially if the conflict intensifies or spreads to other regional actors.
The current standoff is part of a broader geopolitical narrative involving U.S.-Iran relations, which have been strained for years.