Iran is planning to launch a series of attacks in the region in order to distract from the domestic protests.
The Wall Street Journal reported that the Iranians are expected to attack Saudi Arabia and Irbil, Iraq.
The National Security Council is in constant contact with military and intelligence channels with Saudi Arabia. We will act to defend our interests in the region.
As Iran desperately seeks to divert attention during a precarious period of social unrest, the news sent oil futures toward daily highs.
There have been violent protests in Iran since the death of a woman in police custody.
According to the Iranian police, Amini died of a heart attack after being arrested for wearing a headdress that wasn't right. Several officers brutally assault Amini in the police van after she was taken into custody.
Anger over the mismanagement of the country and economic hardship came to a head after the death of Amini. More than a thousand Iranian citizens have been killed by security forces in the ensuing unrest.
Thousands of people have been arrested in the demonstrations that demanded an expansion of women's rights and called for the removal of the Islamic Republic.
Iran has launched dozens of missile strikes in northern Iraq in the last few months.
Several countries have joined the US and Saudi Arabia in increasing their military alert levels.