Overnight reports are emerging of a huge and alarming escalation which will likely dash any chance at alleged peace talks: US-Israeli strikes Monday reportedly targeted energy-related facilities in Iran's Isfahan province and southwestern city of Khorramshahr: 

Israel and the United States have delivered strikes on a pipeline and a gas distribution station in southwestern and central Iran, Fars reported.

According to the news agency, the building of a gas distribution station in Isfahan and a gas pipeline running to a power plant in Khorramshahr on the border with Iraq came under attack. No injuries have been reported. Material damage was caused to the infrastructure and adjacent residential buildings, the news agency specified.

Reportedly a natural gas administration building and a gas pressure reduction station were hit, with damage in the area also impacting residential areas. As a reminder of where things stand, via TASS:

On March 21, President Donald Trump stated that the United States would destroy several Iranian power plants if the Strait of Hormuz was not fully reopened to shipping within 48 hours. In response, the Iranian Armed Forces General Staff warned that, in the event of such an attack, Iran would launch retaliatory strikes against US energy and communications infrastructure in the region.

On March 23, the US leader ordered the Pentagon to postpone strikes on Iran's energy infrastructure for five days amid what he called ongoing "constructive conversations" between Washington and Tehran. Iran denied holding talks with the United States.

Immediate reaction in oil...

All of this holds the potential for Iran to retaliate in kind against sites in the Gulf region, in potential runaway escalation.