Iran hits Kuwaiti oil refinery; explosions boom over Tehran from Israeli attack

A Kuwaiti oil refinery came under attack early Friday from Iranian drones and sirens sounded in Israel warning of incoming fire, while explosions boomed over Tehran as Israel hit Iran as the country marked the Persian New Year.

As the war that has rocked the global economy neared the end of its third week, Iran showed no signs of letting up on its attacks on Gulf region energy structure as Kuwait said drone strikes at its Mina Al-Ahmadi oil refinery sparked a fire and crews were working to control the blaze.

The refinery, which can process some 730,000 barrels of oil per day, was already damaged Thursday in another Iranian attack. It is one of three oil refineries in Kuwait, a tiny, oil-rich nation on the Persian Gulf.

Iran stepped up its attacks on energy sites in Gulf Arab states after Israel on Wednesday bombed Iran's massive South Pars offshore natural gas field in the Persian Gulf.

Heavy explosions shook Dubai as air defences intercepted early incoming fire over the city, where people were observing Eid al-Fitr, the end of the holy Muslim fasting month of Ramadan, and mosques made the day's first call to prayers.

Bahrain's Interior Ministry said a fire broke out after shrapnel from an intercepted projectile landed on a warehouse, and Saudi Arabia reported shooting down multiple drones targeting its oil-rich Eastern Province.

The renewed attacks came after an intense day that saw Iran hit energy infrastructure around the region and launch more than a dozen missile salvos at Israel following the attack on South Pars.

South Pars, the Iranian part of the world's largest gas field, is located offshore in the Persian Gulf and owned jointly with Qatar. With some 80 per cent of power generated in Iran coming from natural gas, the attack posed a direct threat to the country's electricity supplies.

Late Thursday, Israeli Prime Minister Benjamin Netanyahu said the country would hold off on any further attacks on the gas field at the request of U.S. President Donald Trump after the Iranian response sent oil prices skyrocketing.

Beyond Iran's attacks on its Gulf Arab neighbours, its stranglehold on shipping through the Strait of Hormuz, a strategic waterway through which a fifth of the world's oil and other critical goods are transported, has caused rising concerns of a global energy crisis.

Brent crude oil, the international standard, which spiked to more than $119 a barrel during Iran's attacks Thursday, was around $107 in morning trading on Friday, up more than 47% since Israel and the United States attacked Iran on Feb. 28 to start the conflict.

In Israel, sirens sounded early Friday warning of attacks on Jerusalem and on the north of the country, sending people again scrambling to shelters. There were no immediate reports of casualties.

Not long after Israel announced that it had begun new strikes on Iran, the sound of explosions were heard in Tehran, as Iranians marked Nowruz, or the Persian New Year. No further details were immediately available.

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, 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.