Iranian attacks on shipping traffic and energy infrastructure pushed oil above $100 a barrel Thursday as American and Israeli strikes pounded the Islamic Republic with no sign of an end to the war in sight.

Iran hit a container ship off the coast of Dubai, caused a blaze near Bahrain's international airport, targeted a major Saudi oil field with a drone and forced Iraq to halt operations at all of its oil terminals after attacking its port of Basra on the Persian Gulf.

New attacks were also reported in Kuwait and the United Arab Emirates.

Sirens wailed before dawn in Jerusalem as Israel intercepted incoming Iranian missiles, and loud booms were heard later in the day in another attack on the city.

Israel launched a "wide-scale wave of strikes" on Tehran and in Lebanon, where Israel says it is targeting Iran-linked Hezbollah militants, 11 people were killed in two early morning strikes.

Since the United States and Israel started the war with a February 28 attack on Iran, Tehran has focused on inflicting enough global economic pain to pressure them to halt their attacks.

US President Donald Trump suggested that was not imminent, however, promising to "finish the job" even though he claimed Iran is "virtually destroyed."

"We don't want to leave early do we? We've got to finish the job," he said at an event Wednesday in Kentucky.

Iranian Supreme Leader Ayatollah Mojtaba Khamenei hasn't yet made a statement or been seen since being chosen to succeed his father Ayatollah Ali Khamenei, who was killed in the opening day of the conflict. But Iranian President Masoud Pezeshkian suggested online Thursday that for the war to end, the world would need to recognise Iran's "legitimate rights," pay reparations and offer guarantees against future attacks.

In addition to attacking energy infrastructure around the region, Iran has a stranglehold on the Strait of Hormuz, the waterway leading from the Persian Gulf toward the Indian Ocean through which a fifth of the world's oil is transported.

With traffic in the strait effectively stopped, the price of Brent crude oil, the international standard, rose another 9 per cent to more than $100 a barrel, up some 38 per cent over what it cost when the war started.

Iran fires at Arab countries, hits ship in Persian Gulf

The UN Security Council voted Wednesday to approve a resolution demanding a halt to Iran's "egregious attacks" on its Gulf neighbours, but Tehran showed no signs of changing its strategy.

As the day began Thursday, a container ship in the Persian Gulf was hit with a projectile off the coast of Dubai, sparking a small fire, according to the British military's United Kingdom Maritime Trade Operations Centre. It said the crew of the vessel were safe.

In Bahrain, an Iranian attack sparked a major fire on Muharraq Island, home to the country's international airport. Sirens sounded again later in the morning with more incoming Iranian fire.

Kuwait's defence ministry said an Iranian drone smashed into a residential building, wounding two people. The UAE said it had activated air defences twice to protect Dubai from attacks, and firefighters extinguished a blaze at a tower in Dubai Creek Harbour after a drone hit.

Saudi Arabia said it shot down a drone targeting the diplomatic quarter of the capital, Riyadh, and also reported downing drones in the kingdom's east, including at least one trying to target its Shaybah oil field.

Following an attack on Iraq's Basra port Wednesday that killed at least one person, officials said Thursday that operations were halted at all the country's oil terminals.

Farhan al-Fartousi, the director-general of the General Company for Ports of Iraq, said the attack targeted a vessel in a ship-to-ship transfer area of the Persian Gulf port.

In the UAE, CitiBank said it would close all its branches except one due to a threat by Iran, not yet realised, to target financial institutions in the region. Other financial institutions have reportedly urged their staff to work from home for the time being.

Explosions in Jerusalem, Lebanon, Tehran hit

In addition to the attacks on Jerusalem, in which no casualties were immediately reported, missile launches from Iran and Hezbollah also sent Israelis to shelters in multiple other areas, including Tel Aviv and the northern border with Lebanon.

An Israeli strike hit a car Thursday in Ramlet al-Bayda, a major seaside tourist area of Beirut where dozens of displaced people have been sheltering. Eight people were killed and 31 others were wounded, the Lebanese health ministry said.

The Israeli military press office told The Associated Press it was "not aware" of a strike at that location.

In Aramoun, a town about 10 km south of Beirut, another three people were killed and a child was wounded in another early Israeli attack.

In Tehran, security force checkpoints came under attack for the first time on Wednesday night, the semiofficial Fars news agency reported. At least 10 people were killed in the suspected drone assaults.

Israel and the US military's Central Command did not immediately respond to requests for comment over whether they were behind the attacks.

Death toll climbs

At least 634 people have been killed in Lebanon since the latest fighting began, the Lebanese health ministry said Wednesday. The UN refugee agency said at least 7,59,000 people have been internally displaced in Lebanon.

Iranian authorities say more than 1,300 people have been killed there, and Israel has reported 12 people dead. The US has lost seven soldiers.