Oil prices jumped after Iran and Israel exchanged strikes, casting fresh doubt on the future of a fragile cease-fire in the Middle East and stoking fears of an escalation in violence.
The strikes came after Israel attacked the outskirts of Beirut, targeting Hezbollah, the Iranian-backed militant group. Iran retaliated by firing a barrage of ballistic missiles, which prompted a counterattack from Israel. The attack and counterattack are the first such hostilities since a cease-fire paused the war with Iran two months ago.
Stocks in Asia fell sharply as investors retreated from artificial intelligence-related shares that had fueled blistering gains in recent months. South Korea’s benchmark KOSPI index, the world’s best-performing major stock market this year, fell 8 percent before trading was temporarily halted.
