President Donald Trump has threatened to inflict “major military punishment” not only on Iran, but now their Houthi allies, after the Yemeni group fired on Saudi tankers in the Red Sea, sending the price of oil soaring.

In another escalation, the US president said American forces would broaden bombing to a nuclear site called Pickaxe Mountain, 220 kilometres south of Tehran.

The escalations intensify the risk of further pressure on global oil supply and prices.

Donald Trump threatened strikes on Houthis in the Red Sea.

Yemen's Houthis are claiming attacks on Saudi oil tankers in the Red Sea