Trump seeks to 'substantially increase' sanctions on Iran

Donald Trump has asked the US Secretary to the Treasury to increase sanctions against Iran, in the latest escalation of tensions between the two countries.

The US president on Monday accused Iran of being behind two drone attacks on oil facilities in Saudi Arabia, which knocked out about 5% of the world’s oil supply and sent the price of crude soaring.

Yemen’s Houthi rebels have claimed responsibility for the attacks, but Trump has stated “it’s looking” like Iran was responsible. He told reporters he wanted to avoid conflict with Iran but America was “prepared” if a response was merited.

And on Wednesday, Trump tweeted: “I have just instructed the Secretary of the Treasury to substantially increase Sanctions on the country of Iran!”

Iran has consistently denied involvement in the attacks.

Tensions between the US and Iran have been on the rise since late last year, when Trump quit a multilateral deal limiting Iran’s nuclear activities and reinstated sanctions. The sanctions have hit Iran’s economy and severely reduced oil exports.

But Trump, who wants an indefinite halt on Iran’s nuclear programme, is understood to want oil exports to stop completely.