US Secretary of State Mike Pompeo has called attack on Saudi Arabia's oil installations an "act of war" against kingdom by Iran, as Saudis displayed missile and drone wreck and cited or evidence y said shows raid was "unquestionably sponsored by Iran." Iran, which has denied involvement in attack, warned US it will retaliate immediately if it is targeted.

Trump to increase financial sanctions on Iran

President Donald Trump, meanwhile, said he is moving to increase financial sanctions on Tehran over attack. At a news conference, Saudi military spokesman Col. Turki al-Malki said attack Saturday that did heavy dam to heart of Saudi oil industry was "launched from rth and was unquestionably sponsored by Iran." Yemen lies to south of Saudi Arabia, Iran and Iraq to rth. Al-Malki stopped short of accusing Iran of actually firing weapons itself or launching m from Iranian territory.

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Houthi rebels claimed responsibility for attack

Yemen's Iranian-backed Houthi rebels have claimed responsibility for attack, saying it was in response to yearslong Saudi-led war in Yemen that has killed tens of thousands of people. At news conference, Saudis displayed broken and burned drones and pieces of a cruise missile that Al-Malki identified as Iranian weapons collected after attack. He also played surveillance video that he said showed a drone coming in from rth. Eighteen drones and seven cruise missiles were launched in assault, Al-Malki said, with three missiles failing to make ir targets. He said cruise missiles h a range of 700 kilometres (435 miles), meaning y could t have been fired from inside Yemen. "This is kind of weapon Iranian regime and Iranian IRGC are using against civilian object and facilities infrastructure," Al-Malki said, using an acronym for Iran's Revolutionary Guard. He ded: "This attack did t originate from Yemen, despite Iran's best effort to make it appear so."

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Pompeo: It was an Iranian attack

Pompeo, who landed in Saudi Arabia shortly after news conference, took a harder line, telling reporters: " Saudis were nation that was attacked. It was on ir soil. It was an act of war against m directly." He said en route to Saudi Arabia that "it doesn't matter" wher Houthis claim y were behind attack. "This was an Iranian attack," he said on Wednesday. "It doesn't change fingerprints of ayatollah as having put at risk global energy supply," Pompeo said, referring to Iran's Supreme Leer Ayatollah Ali Khomenei.

attack came after a summer of heightened tensions between Iran and US over Trump's withdrawal from 2015 Iranian nuclear deal. Iran sent a te to US via Swiss diplomats in Tehran on Monday, reiterating that Tehran denies involvement in aerial attack, country's state-run IRNA news ncy reported. Swiss have looked after American interests in Tehran for deces. "If any action takes place against Iran, action will be faced by Iran's answer immediately," IRNA quoted te as saying. It ded that Iran's response wouldn't be limited to source of threat, suggesting it would inflict dam beyond what it h suffered.

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US State Department h comment on Iranian warning. Trump separately tweeted Wednesday: "I have just instructed Secretary of Treasury to substantially increase Sanctions on country of Iran!" He did t elaborate, and it was t immediately clear what furr means are available since he has alrey cut deeply into Iran's oil market. National Security Council officials declined to comment. IRNA separately reported that Iran's delegation to annual UN General Assembly meeting h t left Iran because US has yet to issue necessary visas.

Foreign Minister Mohamm Jav Zarif was to travel to New York on Friday, with Iranian President Hassan Rouhani following on Monday. UN meeting h been considered as an opportunity for direct talks between Rouhani and Trump. Asked in Los Angeles wher Rouhani will come to New York, Trump said, "I really don't kw. If it was up to me, I'd let m come." "I've always felt United Nations is very important," he ded. "I think it's got tremendous potential. I don't think it's ever lived up to potential it has. But I would certainly t want to keep people out if y want to come."

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As host of UN's hequarters, US is required to offer world leers and diplomats visas to attend meetings re. But as tensions have risen, US has put increasing restrictions on Iranians like Zarif. In Tehran, Rouhani told his Cabinet that Saudi Arabia should see weekend attack as a warning to end its war in Yemen, where it has fought Houthi rebels since 2015 and sought to restore internationally recognised government. Rouhani said Yemenis "did t hit hospitals, y did t hit schools or Sanaa bazaar," referring to Saudi-led coalition's airstrikes. He said Houthis were responsible for attack on oil installations: "y attacked an industrial centre to warn you. Learn lesson from warning."