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U.S. and Israeli intelligence sources believe Iran is planning to take revenge for the flattening of its embassy in Damascus by launching a drone and missile attack.
Iran promised retaliation for the Israeli strike that killed two of its top military commanders and five advisers in its Islamic Revolutionary Guards Corps on Monday.
It is the latest sign of how the Hamas confrontation with Israel could spiral into a wider war involving Iran.
The U.S. has now gathered intelligence that Tehran is planning to use a swarm of Shahed loitering drones and cruise missiles, according to CBS News.
Little more is known about the timing and target of any retaliation.
Intelligence officials fear that Iran could respond to the Damascus embassy attack by launching a swarm attack with Shahed drones
Rescue workers searched through the rubble of a building annexed to the Iranian embassy a day after an air strike in Damascus killed five Iranian military figures
But officials said a proportional response to the Damascus attack would involve targeting an Israeli diplomatic facility and would likely come before the end of Ramadan next week.
Iran's Shahed drone was first used by Tehran-backed Houthi rebels in Yemen, and is now being used extensively by Russia against Ukrainian targets.
It flies at about 115mph, and is designed to operate in swarms, overwhelming defense systems.
It has an eight-foot wingspan and carries a 100lb warhead which is detonated when the drone crashes into its target.
Senior Iranian figures have promised to take action against Israel.
'We will reciprocate when we want,' said Hussein Akbari, the Iranian ambassador to Syria whose residence was destroyed by the attack.
And Friday brought a public outpouring of anger in Tehran with a funeral for the seven IRGC members killed earlier in the week.
Meanwhile, a senior Iranian diplomat claimed that Washington had asked Tehran to avoid targeting American facilities.
'In a written message, the Islamic Republic of Iran warns US leadership not to get dragged in Netanyahu's trap for US: Stay away so you won’t get hurt,' said Mohammad Jamshidi, the deputy chief of staff for political affairs to Iran’s president, in a post on X.
'In response US asked Iran not to target American facilities.'
People attend the funeral procession for seven Islamic Revolutionary Guard Corps members killed in a strike in Syria, which Iran blamed on Israel
The funeral ceremony coincides with the annual Quds (Jerusalem) Day commemorations, when Iran and its allies stage marches in support of the Palestinians
Supreme Leader Ayatollah Ali Khamenei prays over the coffins of seven Revolutionary Guard Corps members killed in a strike on Iran's consular annex in Damascus
People watch as Palestinian members of a pro-Syrian government squad take part in a military parade to mark the annual Quds (Jerusalem) Day commemorations, in the Yarmouk refugee camp in Damascus
White House national security John Kirby said the issue came up in the Thursday phone call between President Joe Biden and Israeli Prime Minister Benjamin Netanyahu.
'There was discussion between the two leaders about the very viable and quite public threat Iran is making to Israel's security in the last day or so, and the president made very clear — very clear — to Prime Minister Netanyahu that he can count on U.S. support to help them in their self-defense against threats directly and publicly posed by Iran,' Kirby told reporters.
Ali Vaez of the International Crisis Group think-tank said on Thursday that Tehran's leaders were under pressure to act.
'Iran can't afford not to respond, lest its military presence in the region become unsustainable and signal weakness to its chief regional foe,' he said.
The head of Lebanon's armed group Hezbollah said the strike marked a 'turning point' since Oct. 7, when Palestinian group Hamas launched an attack on Israel that has led to escalating regional tensions.
'Be certain, be sure, that the Iranian response to the targeting of the consulate in Damascus is definitely coming against Israel,' he said, according to Reuters.