Reuters

Iran vows retaliation, escalating tensions near the Strait of Hormuz, a key route for international oil flows.

In his first public comments since becoming Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei on Thursday asked neighbouring Arab countries to shut U.S. bases “as soon as possible”

Iran’s central military command, Khatam al-Anbiya, warned it will target economic centers and banks linked to the United States and Israel across the region after overnight strikes.

The exchange of threats comes as the conflict intensifies and global markets closely watch developments in the region.

The suspected Iranian drone attack on the CIA station located in the US Embassy compound in Saudi Arabia’s capital caused significant structural damage, including a partially collapsed roof and heavy smoke.

Spain on Sunday said it would not allow the United States to use its air bases for operations related to the strikes in Iran, deeming the attacks a violation of international law.

"We will burn any ship that tries to pass through the Strait of Hormuz," General Sardar Jabbari said in a post on the Guards' Telegram channel. 

The strike follows months of rising tensions over Iran’s nuclear and missile programmes, renewed U.S.–Iran negotiations, and warnings of retaliation that could engulf the wider Middle East in another dangerous escalation.