Donald Trump: I will 'substantially increase' sanctions on Iran

18 September 2019, 14:03 | Updated: 18 September 2019, 16:05

Donald Trump has said he will "substantially increase" sanctions on Iran.

The president's announcement comes two days after he told reporters it was "looking like" Iran was behind the attacks on Saudi Arabia's oil facilities, but he insisted he does not want war.

Last year, Mr Trump re-imposed sanctions on Iran after pulling out of a landmark nuclear deal.

Iran has rejected claims it was to blame for Saturday's drone attacks on the Abqaiq facility and the Khurais oil field, which damaged the world's biggest crude processing plant and triggered the largest jump in crude prices in decades.

Global prices surged nearly 20% following the bombing of two oil plants.

They then dropped about 10% within 24 hours when markets calmed in reaction to Mr Trump's suggestion that America's stockpile could be used if required.

Contrary to US and Saudi claims, Yemen's Houthi rebels, who are backed by Iran, say they were responsible for the drone strikes and have warned of more to come.

Iran and Saudi Arabia are locked in a long-standing power struggle in the region.

Saudi Arabia is leading a coalition in a war against the Houthi rebels in Yemen. It is often described as a proxy war between Saudi Arabia and Iran.