DUBAI, United Arab Emirates (AP) — Iran intensified its attacks on oil and natural gas facilities around the Gulf on Thursday, raising the stakes in a war that is sending shock waves through the global economy.

The strikes, in retaliation for an Israeli attack on a key Iranian gas field, sent fuel prices soaring and risked drawing Iran’s Arab neighbors directly into the conflict. Iran's targeting of energy production further stressed global supplies already under pressure because of its stranglehold on the Strait of Hormuz, a strategic waterway through which a fifth of the world’s oil is transported.

Since the U.S. and Israel launched the war on Feb. 28, Iran’s top leaders have been killed in airstrikes and the country’s military capabilities have been severely degraded. Still, Iran — now led by the son of the supreme leader killed in the war’s opening salvo — remains capable of missile and drone attacks rattling its Gulf Arab neighbors and a global economy dependent on the energy they produce.

Underscoring the danger to ships in the region, a vessel was set ablaze off the coast of the United Arab Emirates and another damaged off Qatar. Efforts to bypass the Strait of Hormuz were also under pressure: An Iranian drone hit a Saudi refinery on the Red Sea, which the country had been hoping to use as an alternative exit route.

Brent crude oil, the international standard, briefly surged above $119 a barrel, up more than 60% since Israel and the United States started the war. The European benchmark for natural gas prices also rose sharply and has roughly doubled in the past month.

Energy infrastructure is targeted around the Gulf

Qatar, Saudi Arabia and the UAE denounced the Iranian attacks. Arab League Secretary-General Ahmed Aboul Gheit called them a “dangerous escalation.”

But Iran showed no signs of backing down. Saudi Arabia said its SAMREF refinery in the Red Sea port city of Yanbu was hit. Saudi Arabia had begun pumping large volumes of oil west toward the Red Sea to avoid the Strait of Hormuz.

Qatar, a key source of natural gas for world markets, said extensive damage was caused by Iranian missiles hitting the Ras Laffan liquefied natural gas facility, where production had already been halted after earlier attacks. Damage to the facility could delay Qatar's ability to get supplies to the market even after the war ends.

Two oil refineries in Kuwait and gas operations in Abu Dhabi also were targeted by Iran, local authorities said.

In Israel, more than a half-dozen waves of Iranian attacks targeting large parts of the country sent millions of people to shelters. The strikes caused damage to buildings but no significant casualties were reported.

After the latest Iranian barrage, Israeli Energy Minister Eli Cohen said the electricity grid in northern Israel sustained some damage. He said crews had restored electricity to some areas and were working to restore it in others. Israeli media showed images of black smoke rising from an oil refinery in the northern city of Haifa; Cohen said the refinery damage was minor.

Hegseth says more Iranian leaders could be targeted

The Trump administration has cited various war objectives, including degrading Iran’s missile capabilities and its nuclear program. Killing senior leaders has also been a priority for the U.S. and Israel.

Defense Secretary Pete Hegseth on Thursday implied that more leaders could be targeted, referring specifically to the Islamic Revolutionary Guard Corps and Basij force, a powerful internal security unit whose leader was killed by Israel earlier this week.

“The last job anyone in the world wants right now, senior leader for the IRGC or Basij, temp jobs, all of them,” Hegseth said.

Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, said Thursday that U.S. forces continue to attack deeper into Iranian territory, with warplanes hunting Iranian boats in the Strait of Hormuz and helicopters striking Iranian drones. Caine said the U.S. military has also dropped 5,000-pound bombs on underground weapon-storage facilities.

An F-35 fighter jet was forced to make an emergency landing after flying a combat mission over Iran, U.S. Central Command said. Capt. Tim Hawkins, a spokesman for the command, said the aircraft landed safely, the pilot was in “stable” condition and the incident was under investigation.

In a sign of the Iran war's rising price tag, the Pentagon is seeking $200 billion in additional funds, a senior administration official said. The department sent the request to the White House, according to the official, who spoke on condition of anonymity to discuss the private information.

Among the Iranian energy facilities hit in recent days was the Bushehr nuclear power plant complex. There were no injuries and the plant suffered no damage, the International Atomic Energy Agency said.

Israel said Thursday it struck Iranian targets in the Caspian Sea for the first time. Israeli military spokesman Lt. Col. Nadav Shoshani said the strikes hit dozens of targets, including ships, a shipyard and a command center.

Iran’s strikes were retaliation for Israeli attack on a critical gas field

Iran stepped up its attacks on Gulf energy facilities after Israel hit South Pars, the Iranian part of the world’s largest gas field, which is located offshore in the Persian Gulf and owned jointly with Qatar.

With some 80% of all power generated in Iran coming from natural gas, according to the International Energy Agency, the attack directly threatens the country’s electricity supplies. Natural gas is also used to supply household heating and cooking across the Islamic Republic.

“Israel’s target selection in this war has heavily focused on the institutions, leaders and infrastructure,” the New York-based Soufan Center said in a research note. “It now seeks to inflict additional pressure on the regime by making the living conditions for civilians intolerable.”

Iran condemned the strike on South Pars, with President Masoud Pezeshkian warning of “uncontrollable consequences” that “could engulf the entire world.”

In Washington, President Donald Trump said that Israel would not attack South Pars again. But he warned on social media that if Iran continued striking Qatar’s energy infrastructure, the U.S. would retaliate and “massively blow up the entirety” of the field.

Asked later about the possibility of U.S. ground troops being deployed to Iran, Trump responded, “No. I’m not putting troops anywhere.”

Death toll climbs in third week of war

More than 1,300 people in Iran have been killed during the war. Israeli strikes against the Iranian-backed Hezbollah militant group in Lebanon have displaced more than 1 million people — roughly 20% of the population — according to the Lebanese government, which says more than 1,000 people have been killed. Israel says it has killed more than 500 Hezbollah militants.

In Israel, 15 people have been killed by Iranian missile fire. Four people were also killed in the occupied West Bank overnight by an Iranian missile strike, according to officials.

At least 13 U.S. military members have been killed.

Iran announced the execution of three men detained in January’s nationwide protests, the first such sentences known to have been carried out, the judiciary’s Mizan news agency reported.

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Melzer reported from Tzukim, Israel, Rising from Bangkok and Corder from The Hague, Netherlands. Associated Press writers Lisa Mascaro in Washington, Julie Watson in San Diego, and Fatma Khaled in Cairo contributed to this report.

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