Israel has escalated its war with Iran with strikes in Lebanon and Tehran, and Iran has hit sensitive water sites in the Gulf. On Sunday, Israeli attacks ignited oil storage facilities in Tehran and left the capital under smoke. Iran says U.S. strikes also damaged a desalination plant on Qeshm Island. Bahrain says an Iranian drone damaged its desalination plant and wounded three people. Iranian leaders warned the conflict is driving oil prices higher and threatening supply. Iran’s president also threatened more attacks on U.S. targets as fighting spreads across the region.