The Associated Press

DUBAI, United Arab Emirates — A weekend drone attack on Saudi Arabia that cut into global energy supplies and halved the kingdom’s oil production threatened Sunday to fuel a regional crisis, as Iran denied U.S. allegations it launched the assault and tensions remained high over Tehran’s collapsing nuclear deal. Satellite photos examined by The Associated Press suggested damage at the heart of the kingdom’s crucial oil processing facility.

Iran called the U.S. claims “maximum lies,” while a commander in its paramilitary Revolutionary Guard reiterated its forces could strike U.S. military bases across the Mideast with their arsenal of ballistic missiles. A prominent U.S. senator suggested striking Iranian oil refineries in response to the assault, claimed by Yemen’s Iran-backed Houthi rebels, on Saudi Arabia’s largest oil processing facility.

Actions on any side could break into the open a twilight war that’s been raging just below the surface of the wider Persian Gulf in recent months. Already, there have been mysterious attacks on oil tankers that America blames on Tehran, at least one suspected Israeli strike on Shiite forces in Iraq, and Iran shooting down a U.S. military surveillance drone.

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