Trump called the penalties, which hit Iran's national bank, the "highest sanctions ever imposed on a country". But Pentagon leaders will also warn that military action against the Islamic Republic could escalate into war, according to US officials familiar with the discussions who spoke on the condition of anonymity.
Saudi Arabia's production dropped by nearly half after the attack on Saturday, Sept. 14, crippled a major oil processing facility.
Yemen's Houthi rebels immediately claimed responsibility for the attacks. The Iran-aligned Houthi rebel group says it deployed 10 drones in the attacks. Iran denies any responsibility.
If he decides against a US strike, it would mark the second time in recent months that he has pulled back from a major military action against Iran that many Pentagon and other advisers fear could trigger a new Middle East war.
Despite the heated language, the US does not have any legal or treaty obligation to act in defense of Saudi Arabia.
Zarif earlier accused Pompeo of being part of a "B-team" that Tehran says includes Saudi Arabia's crown prince and is trying to dupe Trump into opting for war.
Saudi and USA officials have said that the drones and missiles used in the attack were made by Iran, though Tehran has denied involvement. "We've never done it to this level". One of the columns shown to reporters was a charred wreck, and at least one other was even more badly damaged, he said. "The attack was launched from the north and unquestionably sponsored by Iran", Defense Ministry spokesman Turki Al-Maliki said. We'll see, they're having a lot of problems with us, they have a lot of problems in their own country and I think they have a lot of self-made problems. "Easiest thing", Trump said.
Oil prices, which soared following the attack, steadied after Saudi Arabia pledged to restore full production by the end of the month.
The Abqaiq facility processes sour crude oil into sweet crude, then transports it to shipment points on the Persian Gulf and the Red Sea or to refineries for local production.
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"We believe that we do not need war in this region", he added.
Tehran amplified that message today when a senior Revolutionary Guards commander said Iran would respond from the Mediterranean to the Indian Ocean against any USA plot.
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The Custodian of the Two Holy Mosques reasserted, that following completing the investigation into the attacks on Saudi Aramco facilities, the Kingdom will take appropriate measures to preserve its security and stability.
In 1951, the two countries signed the Mutual Defense Assistance Agreement, which helped cement full diplomatic relations between them, and provided us arms sales and military training to the Kingdom.
The Huthis have been fighting against a Saudi-led coalition that intervened in 2015 to support the country's internationally recognised government. Any U.S. move is likely to be limited, experts said.
USA officials have been unwilling to predict what kind of response Trump will choose.
Under the U.S. Constitution, a formal declaration of war must come from Congress.
More recently, however, Trump expressed a willingness to meet with Iranian President Hassan Rouhani.