Drones struck a British motor oil company in Iraq this morning, triggering an enormous fire, according to local media.
Rudaw English posted a video on X showing plumes of grey smoke billowing into the sky at the facility in the Iraqi city of Erbil, the capital of the Kurdistan region.
It came after Seyed Ali Mousavi, Tehran’s ambassador to the United Kingdom, said Iran is considering strikes on British military bases.
He warned that bases connected to the US war effort may be legitimate targets and fall within reach if tensions continue to spiral.
American forces have already used RAF Fairford and Diego Garcia to launch strikes on Iran since hostilities erupted last month.
Strikes between the Islamic Republic and Israel continue, with Tehran attacking Kuwait, Bahrain, Saudi Arabia and the UAE during a major blitz on its Gulf neighbours.
Iranian drones struck Kuwait's international airport causing a 'large fire' at its fuel tanks, while a Bangladeshi national was killed in the UAE as a result of falling shrapnel.
Bahraini authorities said a blaze broke out at a business facility in the kingdom following 'Iranian aggression', and Saudi Arabia said several drones were intercepted.
Donald Trump announced he will make a major update on the Iran war in an upcoming televised address, after telling reporters the US will be leaving Tehran 'very soon' and military action could end in 'two or three weeks'.
'Iran doesn't have to make a deal, no,' he said, when asked if successful diplomacy was a prerequisite for the US to end what it calls 'Operation Epic Fury'.
The United States had previously threatened to intensify operations if Tehran did not accept a 15-point US ceasefire framework that among its core demands required Iran to commit not to pursue nuclear weapons, halt all uranium enrichment and fully reopen the Strait of Hormuz.
The White House said Trump would address the nation 'to provide an important update on Iran' at 9pm EDT on Wednesday (0100 GMT on Thursday).
Secretary of State Marco Rubio told Fox News Channel's 'Hannity ' programme there was potential for a meeting between both sides 'at some point' and the United States could 'see the finish line'.
'It's not today, it's not tomorrow, but it is coming,' Rubio added.
Shahid Haghani Port, Iran's largest passenger terminal, was hit by an overnight air strike but there were no casualties, with deputy regional governor Ahmad Nafisi calling it a 'criminal' attack on civilian infrastructure.
Gulf countries, some home to US bases, have been repeatedly fired on by Tehran during the conflict, with concerns mounting about Iran's closure of the Strait of Hormuz and ability to use the vital waterway, a conduit for a fifth of global oil and liquefied natural gas, as a bargaining chip.
Oil rose more than one per cent on Wednesday, with Brent futures extending gains after March's record monthly rise despite Trump's talk of a war exit, while stocks and bonds rallied at the start of the Asian session on hopes of a de-escalation.
Higher oil and fuel prices are weighing on US household finances and are a political headache for Trump and his Republican Party before the November midterm elections, with two-thirds of Americans believing the US should work to exit the Iran war quickly, a Reuters/Ipsos poll found.
While the US has said talks with Iran were ongoing and expressed optimism, Iranian Foreign Minister Abbas Araqchi said on Tuesday he had received direct messages from US special envoy Steve Witkoff but those did not constitute 'negotiations'.
The messages include threats or exchanged views delivered through 'friends', he added.
US Defence Secretary Pete Hegseth said on Tuesday other countries needed to 'be prepared to stand up' and help reopen the Strait of Hormuz, echoing criticism from Trump, who has singled out Nato members Britain and France.
Rubio told Fox News the Western alliance was a 'one-way street' and Europe was eager for the US to defend it but would not provide the help Washington had sought.
'After this conflict is concluded, we are going to have to reexamine that relationship,' Rubio said.
The United Arab Emirates is preparing to help the US and allies open the strait by force, the Wall Street Journal reported late on Tuesday.
The UAE is seeking a UN Security Council resolution for the action and suggested the US occupy strategic islands, according to the report.
Iran's Revolutionary Guards on Tuesday hit back with a new threat against US companies in the region starting from 8pm Tehran time (1630 GMT) on Wednesday, listing 18 businesses including Microsoft, Google, Apple, Intel, IBM, Tesla and Boeing.
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