The United States and Iran launched missile strikes on each other on Wednesday, jeopardising the fragile three-week-old ceasefire and sparking fears of an all-out war in West Asia.The US also reimposed sanctions on Iran, sending oil prices soaring. Brent crude oil, the international benchmark, rose 6 per cent, to $78 a barrel. In India, Sensex and Nifty — the two major stock market indices — logged their biggest single-day decline in nearly three months. The BSE Sensex tanked 1,677.12 points, or 2.15 per cent, to settle at 76,503.60, while the NSE Nifty tumbled 516.65 points, or 2.12 per cent, to end at 23,882.05.The stock market crash in India came after US President Donald Trump said the interim agreement with Iran was “over”.Speaking at the NATO summit in Ankara, Turkiye, Trump said, “I might let my negotiators keep talking… but I personally believe it is a waste of time.”Both sides have blamed each other for breaking earlier agreements outlined in the June 17 memorandum of understanding (MoU), which initiated a 60-day peace negotiation process. The MoU allowed Tehran to sell crude oil amid the ongoing peace talks.The US said it had launched fresh strikes against Iran in retaliation for Tehran’s attacks on commercial shipping in the Strait of Hormuz. Later, the Islamic Revolutionary Guard Corps (IRGC) said it had targeted 85 US military sites in Bahrain and Kuwait in response to the US attacks.It claimed to have targeted the US Fifth Naval Base at Port Salman in Bahrain and Kuwait’s Ali Salem Airbase and shot down an MQ9 drone that attempted to “interfere in the operation”.Iranian parliament Speaker MB Ghalibaf termed the US offensive a “major violation of the MoU”. He also questioned the US decision of “reinstating oil sanctions on Iran”. “The era of bullying and extortion is over. It leads nowhere. We don’t fold,” Ghalibaf posted on X.The US Central Command (CENTCOM), responsible for military operations in West Asia, said its forces completed a new round of strikes against Iran on July 7, hitting over 80 targets with precision munitions as an immediate response to Iran’s latest attacks on vessels in the Strait of Hormuz.A CENTCOM statement said, “Forces struck Iranian air defence systems, command and control networks, coastal radar sites, anti-ship missile capabilities and more than 60 Islamic Revolutionary Guard Corps’ small boats in and near the Strait.”The US accused Iran of having recently attacked three vessels transiting the Strait, including Marshall Islands-flagged MT Al Rekayyat, Saudi Arabia-flagged MT Wedyan and Liberian-flagged MT Cyprus Prosperity.CENTCOM said its forces were prepared to hold Iran “accountable” for any violations of the agreement.In Ankara, Trump said, “We attacked very powerfully last night, the very dangerous people from Iran. They’re sick; there’s something wrong with them.”The Iranian Ministry of Foreign Affairs strongly condemned the “aggressive attacks and gross violation” of the MoU by the US. Iran’s Foreign Minister Abbas Araghchi said the US strikes had “rendered key, fundamental elements of the war-ending agreement ineffective”.NATO Secretary-General Mark Rutte strongly backed the US action, saying the response from Washington was warranted following Iran’s attacks on commercial vessels.The Oman Foreign Ministry released a statement condemning Iran’s attacks on sites in Bahrain and Kuwait as well as on ships in the Strait of Hormuz. Qatar’s Foreign Ministry also slammed Iran.