US-Iran Conflict LIVE: Trump Warns of Tougher Economic Action as Hormuz Standoff Escalates

The UAE remained on high alert after emergency missile warnings were issued across the country. Abu Dhabi said its air defences detected two ballistic missiles launched from Iran, while Tehran denied the allegation. Follow all the latest developments from the UAE, Iran and the wider West Asia conflict here.

The UAE remains on alert after a missile threat triggered emergency warnings across the country. Authorities later declared the situation safe and urged residents to resume normal activities.

The UAE Defence Ministry said its air defence systems detected two ballistic missiles launched from Iran. One reportedly fell outside UAE territorial waters, while the other landed within them.

A later assessment indicated that the missiles may have been targeting maritime traffic. Both missiles ultimately fell into the sea, according to UAE authorities.

Tehran has rejected Abu Dhabi’s allegation, adding another layer of tension to an already volatile situation in the region. UAE foreign ministry communications director Afra Al Hameli said, “In light of regional escalations... all trade, commercial exchanges, and financial transactions with Iran have been halted until further notice.” 

The first UAE statement came nearly two hours after a brief phone alert warned residents of a potential missile threat. “Due to the current situation, potential missile threats, immediately seek a safe place in the closest secure building,” the interior ministry said in the phone alert, which was lifted shortly afterwards.

The missile scare comes as the UAE moves to pause trade-related activity with Iran, signalling the growing economic fallout from the escalating conflict.

US President Donald Trump remains central to the rapidly evolving conflict. His latest moves and statements are being closely watched as regional tensions continue to rise.

The UAE Defence Ministry said its forces remain on high alert and are prepared to respond to threats to the country’s security and sovereignty.

The emergency warning was lifted roughly 15 minutes after it was issued. Authorities said there was no continuing threat and asked residents to return to normal activities.

The latest incident marks another dangerous spillover of the wider Iran conflict into the Gulf. The UAE’s strategic location and busy maritime routes make any missile or shipping-related incident particularly significant.

The UAE missile scare comes against the backdrop of continuing US-Iran hostilities and growing fears that the conflict could further disrupt Gulf security, trade and shipping.

US President Donald Trump has said there are no talks underway or scheduled with Iran, sharply narrowing hopes for an immediate diplomatic breakthrough.

Iranian Foreign Minister Abbas Araghchi has pushed back against Trump’s position, claiming Washington is seeking negotiations after failing to force Tehran to surrender.

Trump has posted a map depicting the strategically vital Strait of Hormuz as “New US Territory”, escalating the confrontation with Tehran over control of the key waterway.

Tehran has rejected any suggestion that the US controls the strait. Iranian officials continue to insist that the waterway remains under Iran’s control and have tied its reopening to conditions involving Washington.

Commercial traffic through the Strait of Hormuz has slowed sharply amid the standoff. Reuters reported only six commodity vessels passed through on Tuesday, below the recent daily average of 11.

Tehran has warned it could shift towards a fully offensive military posture if diplomatic efforts fail. The warning comes as Washington rules out extending the temporary ceasefire arrangement.

The UAE has suspended trade and financial transactions with Iran until further notice, adding an economic dimension to the escalating regional confrontation.

The UAE says its air defences detected two ballistic missiles launched from Iran, while Tehran denies responsibility. The missiles reportedly fell into the sea.

Airlines operating from the UAE are facing cancellations and delays as regional security concerns disrupt flight operations and force route adjustments.

The prolonged Hormuz disruption is putting pressure on global energy supplies and shipping. The waterway normally carries about 20% of global crude oil and LNG shipments, making the standoff a major concern for energy markets.

The immediate flashpoints are Strait of Hormuz shipping, possible US military escalation, Iran’s response, UAE security measures and any reopening of diplomatic channels. With Washington and Tehran publicly contradicting each other over negotiations, the risk of further escalation remains high.

US President Donald Trump has announced a new economic campaign targeting Iran, describing it as one of the most severe pressure efforts yet against Tehran.

Trump has warned countries and entities that continue providing financial or commercial support to Iran that they could face severe economic consequences.

The UAE has suspended trade and financial transactions with Iran, potentially striking a major economic channel used by Tehran to access international markets.

The US pressure campaign is increasingly focused on Dubai’s role as a major trading and financial gateway for Iran. The UAE supplied more than 30% of Iran’s imports in 2024, according to figures cited in recent reporting.

Washington’s latest pressure strategy is expected to focus on Iranian oil smuggling, financial transactions and entities helping Tehran bypass sanctions.

The economic crackdown comes as the standoff over the Strait of Hormuz continues. Shipping traffic remains sharply below normal levels, raising concerns over global energy supplies and transport costs.

Trump says there are no talks currently planned with Iran, while Tehran continues to signal that it is open to dialogue under its own conditions. The contradictory messages have reduced hopes of an immediate breakthrough. Trump also said there would be economic consequences for any “country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran. Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — it all needs to stop NOW.”

Washington’s threat to punish countries supporting Iran could put China under greater pressure because Beijing remains a major buyer of Iranian oil. Any sanctions targeting Chinese entities could widen the confrontation beyond the Middle East.