Prime Minister Benjamin Netanyahu on Monday accused Iran of wanting to strike Israel with precision-guided missiles from Yemen as he urged US President Donald Trump's administration to further pressure Tehran.

Netanyahu made the comments as he met US Treasury Secretary Steven Mnuchin in Jerusalem, and while he again congratulated Trump on the death of Islamic State leader Abu Bakr al-Baghdadi, he called for "a lot more" sanctions against Israel's archfoe Iran.

"Iran is seeking to develop now precision-guided munitions, missiles that can hit any target in the Middle East with a circumference of five to 10 metres," Netanyahu said.

"They want to place them in Iraq and in Syria, and to convert Lebanon's arsenal of 130,000... rockets to precision-guided munitions."

He added that "they seek also to develop that, and have already begun to put that in Yemen, with the goal of reaching Israel from there too."

Netanyahu made reference to September 14 attacks on two Saudi oil facilities and echoing Riyadh, blamed Iran. Tehran has denied involvement.

The attacks were claimed by Iran-backed Yemeni rebels.

Mnuchin, on a tour of the Middle East and India, said "we have a shared view as to the threat that Iran poses to the region and to the world" and spoke of the US "maximum pressure campaign" involving sanctions.

"We will continue to ramp up more, more, more, as you've said."

Washington has hit Iran with unilateral sanctions since withdrawing from a 2015 nuclear accord between world powers and Tehran.

Israelis have been concerned over Trump's withdrawal of US troops from neighbouring Syria that many have viewed as a blatant abandonment of Washington's Kurdish allies.

There are worries that Israel too could be abandoned by its most important ally, as well as longstanding concerns that Iran could move to fill any vacuum in Syria.

Iran, along with Russia, has been backing Syrian President Bashar al-Assad's regime in his country's eight-year civil war.

Jared Kushner, Trump's son-in-law and senior adviser, was among the US officials accompanying Mnuchin on his trip.

Kushner and US special representative for Iran Brian Hook also met Netanyahu on Monday.

Benny Gantz, Netanyahu's main opponent in Israel's deadlocked September 17 elections, met Kushner and Hook as well.

Netanyahu failed to form a new government following the elections, and Gantz is now seeking to do so though he also faces long odds.

The stalemate has raised the possibility that Israel will soon be heading toward a third election in a year's time.

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