A huge drone attack on a “British oil company” in Iraq has seen huge fireballs erupt – hours after Iran issued a chilling warning about strikes on UK military bases. Rudaw English posted a video on X showing plumes of thick grey smoke billowing into the sky at the Castrol facility in Erbil, the capital city of the Kurdistan region in Iraq.

Footage from the scene shows bright orange flames with the massive fire consuming large parts of the structure. A company insider told Shafaq News that the drone crashed within the compound, sparking flames to consume substantial quantities of oil and logistical supplies. Emergency crews rushed to the facility in a bid to contain the blaze.

Erbil governor Omid Xoshnaw said the initial drone assault took place at approximately 7.30am, targeting a warehouse holding automotive motor oil.

Mr Xoshnaw said three drones struck the compound directly, while a fourth was intercepted and destroyed mid-air before it could reach its intended target.

“The repeated bombardment and the scale of the fire have left nothing inside the depot untouched by flames”, Mr Xoshnaw told Kurdistan24.

He cautioned that facilities linked to the US military operations could become legitimate targets and be at risk if tensions keep escalating.

Asked whether British bases and assets were “legitimate targets”, Iranian ambassador, Seyed Ali Mousavi, told Times Radio targeting such bases was being considered.

He said: “This is a very important matter for our self-defence. The military sections of our system will decide appropriately. It depends on your activities. It depends on the British decision about this matter.”

Mr Mousavi said: “Every option should be considered. We are very careful and delicate [as to] how to defend ourselves.”

Defence Secretary John Healey told MPs last week the US has permission to use UK bases for defensive strikes against specific Iranian targets, including missile sites and capabilities which threaten shipping through the Strait of Hormuz.