Israel strikes Tehran as Trump says Iran deal may be reached 'soon'

Israel said Monday it was striking military targets across Tehran, a day after US President Donald Trump insisted a deal could "soon" be reached, while not ruling out ground operations.

Iran also launched fresh strikes on Israel, Kuwait and Saudi Arabia after its electrical facilities came under attack at the weekend, cutting power to parts of Tehran and surrounding areas.

The war has inflicted havoc on the global economy, with fuel shortages across much of Asia, stock markets in turmoil, and oil prices soaring -- the main US benchmark rising past $100 a barrel and Brent close to $117.

As Israel pressed its offensive against Iran-backed Hezbollah in southern Lebanon, Indonesia confirmed Monday that one of its peacekeepers was killed after the UN force said a projectile hit one of its positions.

The United Nations Interim Force in Lebanon (UNIFIL) said they did not know the origin of the projectile but had launched an investigation.

Trump, citing the number of Iranian leaders who have been killed in the month-long US-Israeli war against Iran, said "regime change" had been achieved and the new leadership was "much more reasonable".

"We've had regime change," he told reporters aboard Air Force One. "We're dealing with different people than anybody's dealt with before. It's a whole different group of people. So I would consider that regime change."

Asked whether there could be a deal with Iran this coming week, Trump said: "I do see a deal in Iran. Could be soon."

In an interview with the Financial Times published Sunday, Trump said he wants to "take the oil in Iran" and could seize the export hub of Kharg Island.

The US president compared the potential move to Venezuela, where the US intends to control the oil industry "indefinitely" following the capture of leader Nicolas Maduro in January.

"To be honest with you, my favourite thing is to take the oil in Iran but some stupid people back in the US say: 'why are you doing that?' But they're stupid people," he told the newspaper.