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Iran has threatened to attack oil facilities in neighboring countries after Israel struck at least five power plants in and around Tehran, blanketing the city in black smoke and escalating fears that the conflict will result in significant disruption to the global economy.
"If you can tolerate oil at a price higher than $200 per barrel, continue this game," a spokesman for Iran's Revolutionary Guard Corps (IRGC) said on Sunday.
The US tried to calm markets as oil prices surged by pledging not to target Iran's energy infrastructure.
However, fireballs and thick clouds of smoke rose over Tehran on Sunday after Israeli airstrikes hit four storage facilities. The Iranian oil distribution company said four employees were killed, while a dark haze hung over the city and the smell of burning oil lingered in the air. Explosions in the capital's nearby city of Karaj spread across the region and left the area in a thick blanket of smoke.
An IRGC spokesman said Iran would retaliate if attacks on energy infrastructure continued. State media quoted the spokesman as accusing the US and Israel of targeting civilians and fuel facilities, saying Gulf states must pressure them to stop or "similar actions will be taken in the region."
However, US Energy Secretary Chris Wright suggested that the attacks on Iranian oil facilities were carried out by Israel and that Washington would not target Iran's energy infrastructure. Speaking to CNN, Wright claimed that disruptions to oil and gas supplies would be short-lived, "a few weeks" at worst. Iran produces about 4% of global oil, most of which is exported to China.
The tensions came as Mojtaba Khamenei, the second son of the late Iranian supreme leader, Ayatollah Ali Khamenei, was chosen as his successor.
Members of the clerical body responsible for electing Iran's highest authority announced the decision on Sunday evening, calling on Iranians to join him and preserve national unity.
In a statement carried by state media, the assembly said Khamenei had been elected through what it described as a "decisive vote."
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