The statement from Tehran came as fighting around the Strait of Hormuz sent shockwaves through energy markets, prompting emergency releases from global reserves.
TEHRAN: Iran warned it could wage a prolonged war with the United States and Israel that would "destroy" the world economy, even as US President Donald Trump vowed on Thursday (Mar 12) to "finish the job", saying there was little left for American forces to strike.
The statement from Tehran came as fighting around the strategic Strait of Hormuz - the waterway carrying a fifth of the world's oil - sent shockwaves through energy markets, prompting emergency releases from global reserves and a limited draw on US stockpiles.
Oil prices have surged since Feb 28, when the US and Israel launched air strikes on Iran that killed its supreme leader and plunged the Middle East into conflict.
Iranian missile strikes and drone attacks have brought shipping through the strait almost to a halt, forcing governments to scramble to contain the fallout, but Trump said on Wednesday the United States must "finish the job".
"We don't want to leave early, do we?" Trump said while talking about the US-Israeli operation during a speech in Hebron, Kentucky.
Trump said Washington would also tap US strategic reserves "a little" to help stabilise markets, while the International Energy Agency agreed to release a record 400 million barrels.
The president had earlier suggested the war itself might soon wind down. US forces have struck 28 Iranian mine-laying vessels, he said, adding that there was "practically nothing left to target".
"Any time I want it to end, it will end," he said in an interview with Axios.
Israel's military, however, signalled the campaign was far from finished, and that it still had "a broad bank of targets".
ECONOMIC SHOCK
With the conflict in its 12th day, Iran's Revolutionary Guards (IRGC) warned they would strike "economic centres and banks" linked to US and Israeli interests, prompting more international firms to evacuate staff from Dubai.
The US and Israel "must consider the possibility that they will be engaged in a long-term war of attrition that will destroy the entire American economy and the world economy", Ali Fadavi, an adviser to the Guards' commander-in-chief, told state television.
Iran said it targeted two commercial vessels in the Gulf after they entered the Strait of Hormuz, "after ignoring the warnings" of its navy.
The IRGC also insisted Tehran retained full control over the strategic waterway, adding that "armed forces are not neglecting their duties for even a moment".
Analysts warn that a prolonged disruption to shipping through the strait - which also carries roughly a third of the fertiliser used in global food production - would deliver a severe economic shock, particularly in Asia and Europe.
The UN Security Council passed a resolution demanding Iran halt attacks on Gulf states, prompting the Islamic Republic's ambassador to the United Nations to accuse it of a "blatant misuse" of its mandate.
The conflict has already disrupted two pillars of the Gulf economy - energy production and commercial aviation.
On Wednesday, drones fell near Dubai airport, injuring four people, authorities said. Others struck fuel tanks at Oman's Salalah port, according to the Oman News Agency.
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