Kathmandu— Iran fired missiles at U.S. allies in the Gulf early Wednesday, retaliating for American strikes over the weekend that Iranian state media claim hit a wedding party, killing four people and wounding dozens. The renewed violence marks an escalation after a monthlong lull in the six-month conflict that has roiled global oil markets and strained both economies.

Economic Impact of Escalation

The latest flare-up in violence has driven Brent crude oil prices to around $95 per barrel, up more than 30% from the start of the war. The conflict has also battered Iran’s economy with sanctions and an American naval blockade, causing its currency to hit a record low on Wednesday at 2.20 million rials for one U.S. dollar, a 10% increase from last week.

U.S. Allies Under Attack

Following the strikes on Jordan, U.S. Gulf allies Kuwait and Bahrain reported coming under attack without reporting any casualties. In Iraq, Kurdish authorities intercepted 10 drones laden with explosives in the Irbil area, while Israel’s military said that Iran-backed Hezbollah fired two explosive drones at its soldiers in southern Lebanon.

Details of Wedding Strike

According to Iranian state media, a U.S. strike hit a home hosting a wedding in Kuhestak, killing four people — two women and two children aged 4 and 16 — and wounding at least 68 others. Footage from the Iranian Red Crescent showed rescue workers entering a damaged home with a hole in its roof.

Strait of Hormuz Remains Shut Down

The Strait of Hormuz, through which about a fifth of the world’s traded oil was shipped before the conflict began on Feb. 28, remains largely shut down despite U.S. claims that it is open. On Wednesday, Saudi shipping company Bahri reported that two Filipino sailors were killed in an attack as their vessel transited the strait.

(With inputs from AP)

Originally published on abcnews.com.np.