Iran has threatened to destroy US-linked oil facilities in response to American airstrikes on its Kharg Island export hub, as the two-week conflict between Iran and the United States and Israel fuels a surge in global oil prices and risks wider regional escalation.
The warning from Iran’s armed forces follows statements by US President Donald Trump, who said his forces had “totally obliterated” military targets on the island but had held back from striking oil infrastructure. Trump warned that any Iranian interference with shipping in the Strait of Hormuz would trigger an immediate reconsideration of that decision. He also announced the US Navy would soon begin escorting tankers through the critical waterway, where Iranian threats have virtually halted traffic carrying about one-fifth of global oil supplies.
Crude oil prices have risen more than 40 per cent since the war began on February 28. Iran retaliated for the US-Israeli campaign by launching missile and drone attacks against at least 10 countries and threatening oil tankers near Hormuz.
According to Iranian health ministry figures, US and Israeli attacks have killed over 1,200 people within Iran. The UN refugee agency estimates up to 3.2 million people have been displaced internally. These casualty and displacement figures could not be independently verified. Reports also indicate Iran’s Supreme Leader, Ali Khamenei, was killed early in the conflict, with his son, Mojtaba Khamenei, named as successor though he remains out of public view and reportedly wounded.
The conflict has drawn in neighbouring states. Qatar intercepted two missiles over Doha on Saturday, while Saudi Arabia reported shooting down dozens of drones. Turkey said NATO forces downed a ballistic missile from Iran—the third such interception. In Lebanon, an Israeli strike killed medical workers at a clinic, with Lebanese authorities reporting at least 773 killed in attacks targeting Hezbollah.
The United States is reinforcing its regional posture, dispatching the USS Tripoli and 2,500 Marines from Japan. The US military has lost 13 personnel since the start of hostilities, including six in a non-hostile aircraft crash in Iraq.
Meanwhile, Iran’s Revolutionary Guards have warned of a strong response to any domestic unrest following deadly protests in January, and an internet blackout remains in place. A drone struck the US embassy compound in Baghdad late Friday, shortly after two Iran-backed fighters were killed in strikes on the capital.
The fighting underscores the war’s expansion beyond Iran’s borders and its direct threat to global energy security. The US commitment to securing Hormuz shipping lanes and Iran’s vow to target US-linked oil assets set the stage for further confrontation, with oil markets closely monitoring any escalation near the strategic strait.
