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Iran fired two ballistic missiles at Diego Garcia, a joint U.S.-U.K. military base in the Indian Ocean, in its farthest missile launch on record. Tehran is growing bolder in showing its ability to reach Europe, said an Israeli intelligence expert.

Meanwhile, Iran said its Natanz nuclear facility was attacked for the second time in the current war.

The reported airstrike came a day after President Trump said the U.S. is considering “winding down” its military operation in Iran, adding that other countries would need to police the Strait of Hormuz.

While the Iranian leadership currently possesses significant leverage for a deal with the U.S. if it chose to negotiate, it also holds a record of sticking to unrealistically rigid policies since the early days of the Islamic Republic, said Alex Vatanka, a senior fellow at the Middle East Institute and author of a book on U.S.-Iranian relations. Back during the Iran-Iraq war, Iran liberated every inch of its territory by 1982—but only agreed to a cease-fire with Saddam Hussein’s regime in 1988, after massive destruction and hundreds of thousands of casualties on both sides, he noted.

Oil soared past $115 and European natural-gas prices surged more than 20% as attacks on Middle Eastern energy infrastructure fueled anxiety over supply.

Qatar said early Thursday that Iranian ballistic missiles caused extensive damage at its Ras Laffan industrial area, which houses a major hub for liquefied-natural gas. Those strikes came in response to an Israeli attack on a large Iranian gas field, South Pars, which prompted Iran’s president to warn of “uncontrollable consequences, the scope of which could engulf the entire world.”