
United States president Donald Trump said on Friday he aborted a military strike to retaliate for Iran's downing of an unmanned US drone because it could have killed 150 people, and signalled he was open to talks with Tehran.

United States President Donald Trump approved military strikes against Iran in retaliation for downing a US surveillance drone but pulled back from launching them on Thursday night after a day of escalating tensions.

Iran dismissed as “baseless” on Friday US accusations it executed twin attacks that left two tankers ablaze in the Gulf of Oman, raising fears of conflict in the strategically vital waterway.

Iran's youth will witness the demise of Israel and American civilization, Iran's Supreme Leader Ayatollah Ali Khamenei said on Wednesday in comments published on his official website.

President Donald Trump issued an ominous warning to Iran on Sunday suggesting that if the Islamic republic attacks American interests, it will be destroyed.

Oil prices edged up on Thursday to extend gains into a third straight session, as tensions in the Middle East stoked fears of potential disruptions to supply. Brent crude futures were at US$72.04 a barrel at 0110 GMT, up 27 cents, or 0.4per cent, from their last close. Brent closed up 0.7per cent on Wednesday.

Secretary of State Mike Pompeo on Thursday threatened a swift and decisive US response to any attack by Iran, in the latest of a series of escalating statements and actions.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, a move to choke off Tehran's oil revenues which sent crude prices to six-month highs on fears of a potential supply crunch.

Standard Chartered bank is being fined US$1.1bn for violating US sanctions against Iran and over inadequate financial crime controls The penalties, imposed in connection with a range of different investigations in the US and the UK, all date back to before 2014.

France, Germany and Britain have opened a new channel for non-dollar trade with Iran to avert U.S. sanctions, although diplomats say it is unlikely to allow for the big transactions that Tehran says it needs to keep a nuclear deal afloat. Washington’s major European allies opposed last year’s decision by U.S. President Donald Trump to abandon the 2015 deal, under which international sanctions on Iran were lifted in return for Tehran accepting curbs on its nuclear program.