Israeli minister urges unity government to stave off 'blow-up' in Iran tensions

JERUSALEM (Reuters) - Israel's energy minister on Friday warned tensions between Iran and the United States were reaching a breaking point and an Israeli unity government deal was needed to stave off the threat of conflict following an inconclusive election last week.

Washington has blamed Iran for a Sept. 14 attack on Saudi Arabia's oil facilities, and on Thursday announced it would send radar systems and Patriot missiles to the kingdom to bolster its defenses. Iran denies carrying out the attack.

Yuval Steinitz, who is also a member of Prime Minister Benjamin Netanyahu's security cabinet, warned “we are on the verge of the Iran situation blowing up”.

“(The) chances of an American-Iranian or Saudi-Iranian blow-up, or a blow-up in the Gulf which, if it happens, is liable to reach us too, is something that is very, very tangible and realistic,” Steinitz told Tel Aviv radio station 102 FM on Friday.

Steinitz, a member of Netanyahu's right-wing Likud party, said the potential for a wider conflict “is another reason for the need to hasten and form a broad unity government now, and not to be dragged into months of boycotts and discussions.”

On Wednesday, Netanyahu was tapped to try to form the next coalition government after garnering marginally more support from lawmakers than his centrist rival, Benny Gantz, in a Sept. 17 election.

Neither leader was able on his own to put together a coalition with a ruling majority, or reach a power-sharing deal for a unity government between their two parties.

However, with little appetite among Israeli voters for a third trip to the polls in less than a year if no government emerges, public pressure could grow for Netanyahu and Gantz to compromise and join forces.