Firefighters battled another blaze at a Kuwait oil refinery Friday after a fresh drone attack from Iran where millions were marking the country's New Year with muted celebrations under the shadow of war.
Despite calls for an end to targeting Gulf energy infrastructure by European leaders on Thursday, Kuwait reported a fire for the second time this week at its giant Mina Al-Ahmadi refinery, a day after a direct hit on Qatar's vital Ras Laffan facility.
Iranian authorities vowed to retaliate after an Israeli strike on Wednesday damaged its South Pars gas field, which draws on the world's biggest known gas reserve and is vital for domestic supplies.
The escalating damage to Gulf energy infrastructure has led to fears of lasting damage to oil and gas supplies, even as Israeli Prime Minister Benjamin Netanyahu indicated an end to the fighting could be close.
"We are winning and Iran is being decimated," the Israeli premier said at a press conference on Thursday, claiming Tehran no longer had the capacity to manufacture ballistic missiles.
"This war is ending a lot faster than people think," he added in comments that also suggested a "ground component" would be needed to overthrow the government.
Iran's leaders, despite an Israeli assassination campaign and three weeks of bombardment, have vowed to end the conflict on their own terms.
"Our missile industry deserves a perfect score... and there is no concern in this regard, because even under wartime conditions we continue missile production," Iran's Revolutionary Guards spokesman Ali Mohammad Naini was quoted as saying by the Fars news agency.
Moments after his message was shared by the agency, the Revolutionary Guards said he had been killed in an airstrike.
Tehran suffered a new wave of Israeli bombardment Friday, dashing hopes of a truce as the country celebrated the new year spring festival Nowruz and Muslims in the Gulf and elsewhere marked the end of Ramadan.
The Israeli army also targeted a northern region around the Caspian Sea, a popular holiday destination that has so far been largely spared attacks.
Sixteen Iranian cargo vessels were sunk in ports on the Gulf "following the American-Zionist air attack", Iran's Tasnim news agency reported.
"We assume and hope that there will be no attacks on the first day of the new year," Hoda, a resident in Saveh south of Tehran, had told AFP on Thursday.
In Tehran's markets, shoppers were out in force buying new clothes and gifts, although sidewalks were less packed than usual for this time of year, with many people having fled north, AFP correspondents said.
Huge banners bearing images of Nowruz, which begins officially in the evening, have replaced portraits of the country's late leader Ali Khamenei who was assassinated on the first day of the war on February 28 by Israel.
As the war heads towards its fourth week, Iran retains a stranglehold over the strategic Strait of Hormuz through which a fifth of global oil and liquefied natural gas (LNG) usually flows.
As concerns grow over the conflict's economic fallout, President Emmanuel Macron said France planned to talk with permanent members of the UN Security Council about establishing a framework to secure navigation in the Strait of Hormuz – but only after fighting had stopped.
On Thursday President Donald Trump repeated a call for major US allies and others, none of which were consulted or advised on the war, to help secure the safety of shipping.
Germany, Britain, France, Italy, the Netherlands, Japan and Canada pledged in a joint statement to join "appropriate efforts to ensure safe passage through the Strait".
Prospects of a truce have not been helped by the sense that Israel and the US are pursuing different goals and strategies.
"The Israeli government has been focused on disabling the Iranian leadership," US Director of National Intelligence Tulsi Gabbard said on Thursday. "The president said that his objectives are to destroy Iran's ballistic missile-launching capability, their ballistic missile production capability and their navy."