Trump, Iran threaten power, energy targets as war escalates

US President Donald Trump and Iran threatened to escalate their war, targeting energy and fuel facilities in the Persian Gulf, which could again roil global energy and financial markets and deepen a regional crisis.

Trump on Saturday threatened to "obliterate" Iran's power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours.

Iran warned on Sunday it would target US infrastructure, including energy facilities in the gulf, if Trump carried out his threat, which he made as US Marines and heavy landing craft continue to head to the region.

Tehran would likely target gulf energy facilities in Saudi Arabia, the United Arab Emirates and Qatar, which, "would deepen and prolong the pain of higher energy prices and drag the conflict into a broader regional crisis," said IG market analyst Tony Sycamore.

Oil prices jumped on Friday and settled at their highest in nearly four years, after Iraq declared force majeure on all oilfields developed by foreign firms, Israel attacked a major gas field in Iran and Tehran responded with strikes on neighbours, Saudi Arabia, Qatar and Kuwait.