"We will respond decisively to any sabotage," Head of Iran's Revolutionary Guards Major General Hossein Salami warns, while oil prices soar amid Iran-US saber-rattling.
“Today, the American soldier is in danger, tomorrow the European soldier could be in danger,” Iranian President Hassan Rouhani said as three nations challenged Tehran over breaking the limits of its nuclear deal.
While Americans were expecting retaliation, Iran has upped the ante by firing ballistic missiles on Iraqi air bases, which house US troops.
Tehran has long wielded a strong influence over the war-torn country and exploited it for its foreign policy gains.
Hundreds of thousands of Iranians across the country attended events marking the 40th anniversary of the Iranian Revolution, where the rallying cry ranged from "Death to America" to "Death to Israel".
Tehran also says it wants to expand its missile range insisting the missile programme is purely defensive and has threatened to disrupt oil shipments through the Strait of Hormuz in the Gulf if Washington tries to strangle its exports.
Prime Minister Benjamin Netanyahu meets Russian President Vladimir Putin in Moscow on Thursday to voice opposition to what the Israeli leader charged were Iran's attempts to establish a permanent military foothold in Syria.
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