Iran's protests have shined a new light on the seemingly limitless powers of its Supreme Leader

Hundreds of thousands of Iranians throng Tehran's streets for the funeral of military commander Qassem Soleimani, killed by a US drone strike, and his successor promises to drive US forces out of the region in revenge.

Oil prices soar more than four per cent following news that the US killed a top Iranian general, fanning fresh fears of a conflict in the crude-rich region, with Tehran warning of retaliation.

The United States imposes sanctions against Iran's supreme leader Ayatollah Ali Khamenei and top military chiefs, tightening the screws on a country that President Donald Trump threatened with "obliteration" if it seeks war.

Iranian supreme leader Ayatollah Ali Khamenei says that the attackers who killed 25 people at a military parade were paid by Saudi Arabia and the United Arab Emirates, and that Iran would "severely punish" those behind the bloodshed.