Pakistan, Sept. 3 -- Iranians and their Arab neighbours feared a return of war on Wednesday after the biggest exchange of fire between Tehran and Washington since July, with US forces striking Iran's southern coast and Iran firing at American bases across the region.

The United States threatened more devastating strikes. Iran accused Washington of hitting a wedding party, killing four people and wounding dozens.

The US military said it struck air defences, radar systems, maritime assets, mine-laying capabilities and communications sites on Tuesday. Iran reported hits on multiple targets near the Strait of Hormuz.

Iran responded by striking what it said were US assets in Bahrain, Jordan, Kuwait and Iraq, and said its aim was now to driv...