The US military says it has launched strikes on Iran for the 13th consecutive night, with Iranian state media saying four people have been killed and five injured.

It comes as US President Donald Trump said he would use Iranian assets held by the US to pay for "any damages to Ships, Cargo, or anything related thereto".

Iranian Foreign Minister Abbas Araghchi hit back at the threat that Trump called "fair and equitable", calling it an "incendiary precedent".

The latest strikes follow Yemen's Iranian-backed Houthis' claim to have attacked two Saudi tankers in the Red Sea and growing concerns over increasing threats to global shipping caused oil prices to spike.

Iranian state media have reported explosions in key military and commercial sites in the south of the country including the port city Bandar Abbas and Qeshm Island.

Trump had earlier promised "major military punishment" against Iran for attacks by the Houthis and Iran.

The US military says it carried out strikes to degrade Iran's ability to threaten civilian shipping in regional waters.

US Central Command (Centcom) said it had targeted "Iranian military command centers, drone storage facilities, communication networks, coastal surveillance sites and maritime capabilities".

But as the US pushes to regain control over the Strait of Hormuz, there's growing concern over new threats to shipping in the Red Sea from the Iran-backed Houthis.

That's helped push the price of crude oil back over$100 (£74.96) a barrel - the highest level since May.

Reuters news agency reported that only one tanker went through the Strait on Thursday 24 July, citing ship-tracking data, which they said was the lowest level of transit since 7 May.

As tensions in the region continued, Trump said the damage to ships and cargo "will be paid for by Iranian Money that the United States has in its possession, and controls" and the amount could be "very substantial".

Iran's foreign minister responded to Trump, writing "Those who celebrate or profit from such funds should remember: once governments normalize confiscation, no one's assets are safe."

"Ensuing chaos will not be pretty or peaceful," Araghchi added.

Bahrain's Interior Ministry reported that its air sirens had been sounded and Iranian state media also said alarms had been activated in Jordan.

In June, the US and Iran agreed on a 14-point Memorandum of Understanding (MOU) to halt military operations and reopen the Strait of Hormuz, as well as to reach an agreement to end the war over the following 60 days.

But three weeks after it was signed, Trump declared the ceasefire "over" after Iranian attacks on ships in Hormuz, and US strikes in response.

Point 11 of the MoU detailed that the "United States of America undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran".