Speaking after a consultative meeting of Arab and Islamic foreign ministers in Riyadh, bin Farhan accused Tehran of premeditated hostile actions against its neighbours, both directly and through regional proxies, and urged it to halt further escalation.

“This pressure from Iran will backfire politically and morally and certainly we reserve the right to take military actions if deemed necessary,” he told a news conference.

Saudi Arabia’s defence ministry said it intercepted and destroyed four ballistic missiles targeting Riyadh, with debris falling near a refinery south of the capital. Interceptors were seen launched near the venue hosting the diplomatic gathering as ministers from countries including Turkey, the United Arab Emirates, Jordan, Qatar and Syria convened.

The strikes marked a significant moment in the conflict, with residents in Riyadh reporting blasts and receiving warning alerts for the first time since hostilities began.

Saudi authorities say the kingdom has faced hundreds of missiles and drones since the start of the conflict, the vast majority of which have been intercepted.

The escalation follows Iran’s vow to target oil and gas infrastructure across the Gulf after what it described as an Israeli strike on its facilities in the South Pars gas field.

Attacks on Wednesday affected energy sites in Qatar, the United Arab Emirates and Saudi Arabia, raising concerns over global supply disruptions.The widening conflict, now in its third week, has already driven oil prices higher and unsettled energy markets as critical infrastructure comes under repeated threat.

Saudi Arabia and Iran restored diplomatic relations in 2023 after years of rivalry that saw them support opposing factions across the region.

Bin Farhan said Riyadh still preferred diplomacy but warned that continued Iranian actions could eliminate any remaining basis for trust.

“If Iran doesn’t stop immediately, I think there will be almost nothing that can re-establish trust,” he said.

The attack on South Pars, a major component of the world’s largest natural gas deposit shared by Iran and Qatar, drove oil prices higher and intensified concerns over global energy supply disruptions.

Trump said Israel had acted “out of anger” and that Washington had no advance knowledge of the operation.

QatarEnergy reported “extensive damage” and sizeable fires at facilities in Ras Laffan Industrial City following missile strikes, while Saudi Arabia said it intercepted four ballistic missiles aimed at Riyadh and thwarted a drone attack on a gas installation in its eastern region.

The strikes mark a significant expansion of hostilities into critical energy infrastructure in the Gulf, a region central to global oil and gas markets. Ras Laffan processes roughly a fifth of the world’s liquefied natural gas, making it one of the most strategically important energy hubs globally.

Iran carried out additional missile attacks on Thursday targeting Qatari gas facilities and the Saudi capital, according to officials, heightening fears of prolonged disruption to energy flows.

The South Pars field itself is a cornerstone of Iran’s gas production and is geologically linked to Qatar’s North Field, underscoring the cross-border risks posed by military escalation.In a post on X, Trump said Israel’s strike had been a response to developments in the region but warned Tehran against further escalation.

He described Iran’s subsequent targeting of Qatar’s LNG facilities as “unjustified,” adding that Doha had not been involved in the initial attack.

Trump said the United States would prevent further Israeli strikes on South Pars unless Iran “unwisely” targets Qatar again. He also warned that any such move by Tehran would trigger a large-scale U.S. response against the gas field.

Earlier reporting by the Wall Street Journal said Trump had approved Israel’s plan to strike Iran’s gas infrastructure, though the president said Washington had no prior knowledge of the specific operation.

Regional fallout widensIran’s actions reflect a broader pattern since the conflict began nearly four weeks ago, with Tehran targeting not only Israel but also U.S. diplomatic and military facilities across the Gulf. Iranian officials have also warned neighbouring states against facilitating attacks on its territory.

Saudi authorities said their air defences successfully neutralised incoming threats, while Qatar has yet to detail the full operational impact of the damage to its LNG facilities.

The widening scope of attacks on energy infrastructure has raised geopolitical and economic stakes, with markets reacting to the potential for sustained disruption across key supply routes and production hubs.

The offer was made by China’s Taiwan Affairs Office, with spokesperson Chen Binhua saying “peaceful reunification” would provide stronger protection for Taiwan’s energy and resource security under what he called the backing of a “strong motherland.”

The proposal comes as governments worldwide scramble to secure alternative fuel supplies following disruptions to shipping routes through the Strait of Hormuz, a key artery for global oil and liquefied natural gas flows.

Taiwan, which previously sourced about one-third of its liquefied natural gas from Qatar and imports no energy from China, has said it has secured alternative supplies for the coming months, including from the United States, its main international backer.

President Lai Ching-te said energy supplies for the near term were assured and that additional U.S. gas imports would begin from June, according to a statement from his Democratic Progressive Party.

China has long framed economic and security incentives as part of its strategy to persuade Taiwan to accept unification under its “one country, two systems” model, which no major Taiwanese political party supports.

Chen said Beijing was willing to provide “stable and reliable energy and resource security” to improve living conditions for people in Taiwan, reiterating a narrative that closer integration would bring material benefits.

Taiwan’s government, which rejects China’s sovereignty claims, has consistently maintained that only the island’s people can determine its future.

The energy proposal comes against the backdrop of heightened geopolitical strain, with the Middle East conflict triggering volatility in global energy markets and prompting countries across Asia to reassess supply security.

China, the world’s largest oil importer, has also taken domestic measures to safeguard supply, including restricting fuel exports in recent days, according to reports.

Beijing has never renounced the use of force to bring Taiwan under its control, though it has repeatedly stated a preference for peaceful unification.

The latest offer underscores how energy security has emerged as a central element in cross-strait dynamics as global supply disruptions reshape strategic calculations.

A Turkish diplomatic source said representatives from Azerbaijan, Bahrain, Egypt, Jordan, Kuwait, Pakistan, Qatar, Syria, Turkey and the United Arab Emirates would attend.

The meeting comes amid limited signs of de-escalation nearly three weeks into the U.S.-Israeli war with Iran, which has disrupted the region and affected global energy supplies. The conflict has heightened concerns over broader instability across the Middle East.

Hakan Fidan is expected to stress the need for a negotiated and peaceful resolution, warning that a prolonged conflict could inflict lasting damage on ties between regional countries, the Turkish source said. He is also expected to visit additional countries following the Riyadh talks.

Turkey, a member of the NATO and a neighbour of Iran, had sought to mediate between Tehran and United States before the war began. Ankara has since condemned U.S. and Israeli strikes on Iran as violations of international law, while also criticising Iranian attacks on Gulf states as unacceptable.

The Riyadh meeting is expected to focus on coordinated diplomatic efforts to contain the conflict and mitigate its economic and security repercussions across the region.

Oil flows are expected to begin at 10 a.m. , according to state media citing Oil Minister Hayan Abdel-Ghani. The agreement includes provisions to enhance security around oilfields and ensure continuity of export operations, Kurdish authorities said.

KRG Prime Minister Masrour Barzani said the region would allow crude exports through its pipeline network “at the earliest possible time” given the exceptional circumstances facing the country. He added that talks with Baghdad would continue to lift trade restrictions and provide guarantees to international oil companies to safely resume production.

Barzani also said he had instructed regional officials to facilitate exports following discussions with U.S. envoy Tom Barrack, emphasising the need to prioritise economic stability for citizens.

Tensions between Baghdad and the KRG had escalated in recent days, with Kurdish authorities accusing the federal government of failing to address security and economic challenges affecting the oil sector. Baghdad, in turn, said the KRG had refused to allow use of a regional pipeline as an alternative export route, alleging the imposition of arbitrary conditions.

The dispute unfolded against the backdrop of wider regional instability, including disruptions to crude flows linked to the Iran conflict.

Iraq’s presidency called on both sides to cooperate to restart exports, while parliament issued a seven-point directive urging the government to secure alternative outlets for crude to mitigate economic damage under current security conditions.

The parliamentary intervention followed consultations with the oil ministry to assess the impact of halted exports after the closure of the Strait of Hormuz, a key global energy transit chokepoint, underscoring the urgency of restoring flows through northern export routes.

The escalation comes in the third week of the U.S.-Israeli conflict with Iran, which has left at least 2,000 people dead and disrupted critical energy flows through the Strait of Hormuz.

Gulf targets hitIranian strikes hit oil and transport infrastructure in the UAE, where a drone struck a facility in Fujairah for a second consecutive day and debris from an intercepted missile fell in Abu Dhabi, killing one person, authorities said.

Rockets and drones also targeted the U.S. embassy in Baghdad in what Iraqi security sources described as the most intense such assault since the conflict began, though U.S. officials said no injuries were reported.Iran’s attacks have also extended to other Gulf states, including Qatar, Saudi Arabia, Bahrain and Kuwait, signalling a broader regional response.

Trump remarks and intelligence warnings.Trump said the scope of Iran’s retaliation had come as a surprise. “They weren’t supposed to go after all these other countries in the Middle East.

Nobody expected that. We were shocked,” he said.However, U.S. officials and sources familiar with intelligence assessments said the president had been warned before the conflict that strikes on Iran could provoke retaliatory attacks against Gulf allies, particularly if Tehran perceived them as supporting U.S. operations.

There was no pause in hostilities, with Iran launching overnight missile strikes on Israel, demonstrating continued long-range strike capability despite sustained bombardment.

Israel said it carried out a fresh wave of strikes on targets in Tehran and positions linked to Hezbollah in Beirut, and signalled plans for several more weeks of military operations.

Energy and market impactThe widening conflict has kept the Strait of Hormuz largely constrained, as U.S. allies declined to join efforts to secure the waterway.

The disruption has raised concerns over energy supplies, pushed up oil prices and intensified fears of inflation globally.

The currency has come under strain amid rising geopolitical tensions that have disrupted energy markets, particularly around the Strait of Hormuz, a key transit route for crude supplies.

Higher oil import costs typically weigh on the rupee by widening India’s trade deficit and increasing dollar outflows.

Dealers said sustained demand for the U.S. dollar from importers, especially oil companies, has kept the rupee under pressure. Concerns over global inflation and tighter financial conditions have also supported the dollar, limiting gains in emerging market currencies.

Market participants pointed to uncertainty stemming from escalating conflict in the Middle East as a key driver behind risk aversion, prompting investors to shift toward safe-haven assets.

Traders said the Reserve Bank of India was likely present in the foreign exchange market to smooth volatility, helping the rupee avoid sharper losses. The central bank typically intervenes to curb excessive fluctuations rather than defend specific levels.

Analysts expect the rupee to remain sensitive to oil price movements and global risk sentiment in the near term, with any further escalation in geopolitical tensions likely to add to downward pressure.

Futures for the GIFT Nifty were trading at 23,257 at 08:11 a.m. IST, indicating that the Nifty 50 would open above Friday’s close of 23,151.10 after posting its steepest weekly drop in years and entering a technical correction.

Supply route developments lift sentimentMarket sentiment improved after the Wall Street Journal reported that the United States was preparing to announce a coalition of countries to escort commercial vessels through the Strait of Hormuz, a maritime corridor that handles about one-fifth of global oil supply.

Additional support came after two India-flagged liquefied petroleum gas carriers Shivalik and Nanda Devi transporting roughly 92,712 metric tons of LPG successfully crossed the strait last week en route to India, easing immediate concerns about fuel supply disruptions.

India’s foreign minister Subrahmanyam Jaishankar said in an interview with the Financial Times published Sunday that he had been in discussions with Iran and that dialogue had produced some results.

However, investors remain cautious as the conflict in the Middle East continues to threaten energy flows and financial markets.

Oil and currency pressures persist as rude oil prices have stayed above $100 per barrel during the conflict, raising concerns about inflation and economic growth in India

.The surge in energy costs has also pushed the Indian Rupee to record lows against the U.S. dollar, highlighting the vulnerability of the country’s energy-dependent economy.

Traffic through the Strait of Hormuz has been heavily curtailed since the United States and Israel launched a bombing campaign on Iran at the end of February, prompting Tehran to largely halt commercial shipping through the critical waterway.

Members of the party’s Middle East crisis economic response task force said the measures aim to stabilise domestic energy supply and prices as shipments of oil and gas to South Korea have been disrupted by the regional conflict affecting the vital maritime corridor.

According to data from the Korea International Trade Association, South Korea depends heavily on energy imports, sourcing about 70% of its crude oil and roughly 20% of its liquefied natural gas (LNG) from the Middle East.

Democratic Party lawmaker Ahn Do-geol said the government would prioritise managing LNG supplies by increasing electricity production from coal and nuclear facilities while scaling back reliance on LNG-fired power generation.

Limits that capped coal power output at 80% of installed capacity will be lifted starting Monday, Ahn said. Maintenance work at six nuclear reactors will also be completed earlier than scheduled to raise the utilisation rate of nuclear plants from the high-60% range to about 80%.

The government on Friday introduced a price ceiling on gasoline of 1,724 won ($1.15) per litre, with adjustments planned every two weeks to reflect changes in global oil markets.

Ahn said gasoline and diesel prices had already declined since the cap was introduced, falling by 58 won and 77 won per litre respectively as of Sunday.

Officials said a supplementary budget would be drafted by the end of the month and submitted to parliament to cushion the economic impact of higher energy costs.

Democratic Party leader Jung Chung-rae said the party would fast-track approval of the budget within 10 days after it is submitted. The proposed spending package is expected to include compensation for refiners linked to the fuel price cap, energy vouchers for households, logistics support for exporters and expanded investment in renewable energy.

The Budget Ministry said no specific date had yet been set for the supplementary budget but that preparations were underway.

Authorities are also considering designating the Yeosu Petrochemical Complex as a special industrial crisis response zone as part of efforts to support industries affected by the energy disruption.

The emirate serves as a strategic outlet for exports of Murban crude, with shipments of around 1 million barrels per day flowing through the facility. That volume accounts for roughly 1% of global oil demand, making Fujairah one of the most important energy transit points outside the Strait of Hormuz.

Fujairah’s location on the Gulf of Oman allows crude shipments to bypass the narrow Strait of Hormuz, a chokepoint for global energy supplies that has become increasingly sensitive amid the ongoing regional conflict.

Industry participants closely monitor the emirate because it provides one of the few alternative export routes in the region should shipping through the strait face disruption.

Abu Dhabi National Oil Company, which operates major energy infrastructure in the emirate, did not immediately respond to a Reuters request for comment on the incident or the status of facilities.

Bloomberg News earlier reported that oil loading operations in Fujairah had resumed following the disruption.

The brief halt in activity underscored the vulnerability of energy infrastructure across the Gulf as regional tensions escalate and drone and missile attacks target key supply hubs.