Palestinian Islamist movement Hamas on Saturday called on Iran to refrain from targeting neighbouring countries while affirming Tehran's right to defend itself against Israel and the United States.

"While affirming the right of the Islamic Republic of Iran to respond to this aggression by all available means in accordance with international norms and laws, the movement calls on the brothers in Iran to avoid targeting neighbouring countries," Hamas said in a statement.

Hamas, which fought a devastating two-year war with Israel in Gaza, also called on the international community to "work towards halting" the ongoing war immediately.

The call by Hamas came as a large explosion rocked an area of Iran’s capital where thousands were gathered for an annual state-organised rally to support the Palestinians and call for Israel’s demise. Israel had warned that it would target the area in central Tehran.

There were no immediate reports of casualties. But the decision to proceed with the mass demonstration that was attended by some senior government officials, and Israel’s threat to target the area, underscored the fierce determination on both sides nearly two weeks into a war that has rattled the global economy and shows no sign of letting up.

Iran's armed forces responded to US attacks on Friday on its forces and installations on Kharg Island, which handles almost all of Iran's crude exports, by saying any strike on their country's oil and energy infrastructure would lead to strikes on facilities owned by oil companies co-operating with ⁠the United States in the region, Iranian media reported.

Iran's semi-official Fars news agency reported, citing sources, that more than 15 explosions were heard on the ⁠island during the US attacks. The sources said air ⁠defences, a naval base and airport facilities were hit, but there was no damage to oil infrastructure.

Markets were watching for any sign that US strikes had damaged the island's intricate network of pipelines, terminals and storage tanks. Even minor disruptions could further tighten global supply, adding pressure to a volatile market.

"You take out Kharg infrastructure, ⁠then you take two million bpd out of the market for good – not until the Straits ⁠get fixed," said Dan Pickering, chief investment ⁠officer for Pickering Energy Partners.

"I’m very concerned it elevates the temperature and ‌Iran has less to lose and it seems to escalate. Iran when backed into a corner is highly emboldened to act,” said Patrick De Haan, an analyst with US fuel price tracker ‌GasBuddy. Iran has all but shut shipping through the Strait of Hormuz, through which 20 percent of global oil flows, mostly to Asia.

Much of the oil shipped from Iran via Kharg goes to China, the top ‌global crude importer, which has been taking measures including banning refined fuel exports to preserve supplies amid disruption in the Middle East.

Iranian oil accounts for 11.6 percent of China's seaborne imports so far this year, according to tanker tracker Kpler, and is mostly bought by independent refiners attracted by what had been deeply discounted prices due to US sanctions on Tehran.

The US embassy in the Iraqi capital Baghdad was hit in a missile attack on Saturday, causing smoke to rise from the building, Iraqi security sources said.

In other attacks across the region, Iran's Revolutionary Guards said they had carried out additional attacks on Israel with Lebanon's Hezbollah militia, Iran's Tasnim news agency reported. (Agencies)



Edited by Thomas McAlinden