New UN report urges action as Hormuz shipping drops 95%, sparking global inflation fears

As the US–Israel war on Iran enters day 34, tensions show no sign of easing, with Donald Trump warning of intensified strikes in the coming weeks. The US president claims American forces are close to achieving their objectives, even as divisions widen within NATO over the conflict. Meanwhile, in the UAE, authorities say the situation remains under control after successfully intercepting Iranian missile and drone threats.. Follow all the live updates here:
The United Nations Conference on Trade and Development (UNCTAD) confirmed in a new report that maritime navigation through the Strait of Hormuz has nearly come to a standstill, recording a 95% decrease in the number of vessels passing through daily over the past month.
The disruption is expected to reduce annual trade growth in goods by at least 1% and drive up inflation due to rising crude oil prices.
Iran said Thursday that Washington's demands were "maximalist and irrational" and denied any negotiations were under way on a ceasefire to end the war in the Middle East, as President Donald Trump prepared to make a national address on the conflict.
Abu Dhabi: The UAE's air defence systems are responding to incoming missile and drone threats from Iran, the Ministry of Defence said early on Thursday, as loud sounds were reported in several parts of the country. In a statement, the ministry said the loud booms heard in certain areas were the result of air defence systems intercepting missiles and drones targeting the UAE.
The UAE Ministry of Defence has given the all-clear to residents across the country, declaring the security situation stable following an alert sent out earlier. A mobile notification was pushed to phones nationwide, thanking the public for their cooperation and confirming that daily life could resume as normal. Residents were nonetheless encouraged to stay alert, exercise caution, and continue monitoring official government channels for any further developments.
US President Donald Trump vowed Wednesday to attack Iran relentlessly over the coming two to three weeks, saying American forces were nearing completion of the war.
"Over the next two to three weeks, we are going to bring them back to the Stone Ages, where they belong," Trump said in an address to the nation, adding that US forces would meet all their battlefield goals "very, very shortly."
Oil prices surged Thursday after Donald Trump's address to the nation did little to soothe investor worries over the closure of the strategic Strait of Hormuz, with the US president calling on other nations to help reopen it.
Brent jumped more than four percent to as high as $105.55, while West Texas Intermediate climbed three percent to hit $103.16. Both contracts had been falling before the US president started his speech.
Israel's military said air defences were responding to an Iranian missile attack on Thursday, shortly after US President Donald Trump delivered an address to the American public about the Middle East war.
The military said in a statement it had "identified missiles launched from Iran toward the territory of the State of Israel" for the third time in just over three hours, adding that "defensive systems are operating to intercept the threat".
Air raid sirens sounded across northern Israel, according to the military's Home Front Command, and there were no immediate reports of any casualties or damage.
Australian Prime Minister Anthony Albanese said on Thursday the original objectives of the war in Iran had been met and it was not clear what more remained to be achieved.
"Now those objectives have been realised it is not clear what more needs to be achieved or what the end point looks like," he said.
Authorities in Abu Dhabi have responded to an incident near the Khalifa Economic Zones (KEZAD) after air defence systems successfully intercepted a missile, causing minor damage with no injuries reported. The public has been urged to rely only on official sources and to refrain from sharing unverified information or rumours.
Lebanese militant group Hezbollah said its fighters launched drones and rockets at northern Israel on Thursday, with the Israeli military's Home Front Command saying air raid sirens were activated across the border.
In separate statements, the Iran-backed group claimed rocket fire targeting Israeli troops in border areas and a drone attack targeting a village.
Sirens were activated in those areas, according to the Israeli Home Front Command, with no reports of any casualties or damage.
Israel's military said air defences were responding on Thursday to a fourth Iranian missile attack within six hours, as sirens sounded in parts of northern Israel.
A military statement said Israeli forces had "identified missiles launched from Iran toward the territory of the State of Israel", adding that "defensive systems are operating to intercept the threat".
Malaysia will introduce a work from home policy for ministries, agencies, statutory bodies and government linked companies starting April 15 to conserve energy while the Middle East war rages, Prime Minister Anwar Ibrahim announced.
"The cabinet has agreed to the work from home policy. It aims to reduce fuel consumption and ensure a stable energy supply," Anwar said during a special briefing late Wednesday.
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Several Chinese airlines, including national carrier Air China, said they will raise their fuel surcharges on domestic flights from Sunday, as the war in the Middle East drives up oil prices globally.
Air China, China Southern and its subsidiary Xiamen Airlines said in statements that they will increase surcharges on flights of up to 800 kilometres (500 miles) by 60 yuan ($8.70), and 120 yuan for longer flights. Spring Airlines and Juneyao Airlines also announced fuel surcharge hikes.
Saudi forces have intercepted and destroyed five hostile UAVs and one ballistic missile, according to Ministry of Defence spokesman Maj.-Gen. Turki Al Maliki. The latest intercepts bring the total number of drones and missiles targeting the Kingdom since the start of the Iranian conflict to 843 and 80 respectively.
Iran's military vowed on Thursday to carry out "crushing" attacks against the United States and Israel after US President Donald Trump threatened to bomb the country into the "Stone Ages" in the coming weeks.
"With trust in Almighty God, this war will continue until your humiliation, disgrace, permanent and certain regret, and surrender," said the military's operational command Khatam Al-Anbiya in a statement carried by state TV.
"Await our more crushing, broader, and more destructive actions."
The US embassy in Baghdad warned Thursday that pro-Iran armed groups in Iraq may attack the city in the coming one or two days.
"Iraqi terrorist militia groups aligned with Iran may intend to conduct attacks in central Baghdad in the next 24-48 hours," the embassy said in a statement on X, again urging Americans in the country to leave immediately.
Kuwait Airways will resume flights to Mumbai, Delhi, Ahmedabad and Kochi from April 5, operating via Dammam Airport, the airline's Acting CEO Abdul Wahab Al Shatti told KUNA. Al Shatti said the airline plans to continue adding new destinations to meet growing passenger demand.
In just over a month, the global aviation industry has undergone a dramatic shift, with airfares climbing sharply across major routes, including from the UAE.
What was once a relatively stable pricing environment has become volatile, as airlines grapple with rising fuel costs, reduced capacity, and longer flight paths due to the US-Israel war on Iran. With the Hormuz Strait essentially shut down, matters have been complicated even further.
China called on Thursday for an immediate ceasefire in the Middle East, after US President Donald Trump threatened heavy strikes on the Islamic republic in the coming weeks.
"Military means cannot fundamentally solve the problem, and the escalation of conflicts is not in the interests of either side," Beijing's foreign ministry spokeswoman Mao Ning told a news conference, urging "the parties concerned to immediately cease military operations".
Four people were injured after shrapnel from an Iranian missile struck the Tel Aviv area, according to the Israeli army radio. Iran fired 10 missiles targeting different areas, while 35 missiles were also reported fired from Lebanon toward settlements in northern Israel. The Israeli army confirmed loud explosions were heard across the country and responded with airstrikes and artillery fire on several locations in southern Lebanon.
China said on Thursday that US and Israeli strikes on Iran were the "root cause" of the Strait of Hormuz blockage, after US President Donald Trump called on affected countries to seize the key waterway.
"The root cause of interruptions to navigation through the Strait of Hormuz is the United States and Israel's illegal military operations against Iran," Beijing's foreign ministry spokeswoman Mao Ning told a news conference, when asked about Trump's comments.
The US leader said on Wednesday that countries that receive oil through the Hormuz strait "must take care of that passage", urging them to "just take it, protect it, use it for yourselves".
Strikes have hit a century-old medical centre in the Iranian capital, causing extensive damage, the country's health ministry said on Thursday.
"The aggression against Pasteur Institute of Iran - a century-old pillar of global health and member of International Pasteur Network - is a direct assault on international health security," said health ministry spokesman Hossein Kermanpour in a post on X.
He posted images from the site showing the building heavily damaged, with parts of the facility reduced to rubble.
A US or Israeli strike on Iran's Bushehr nuclear power plant would constitute a "war crime" under international law, Tehran's envoy to the United Nations' atomic agency told AFP on Thursday.
Reza Najafi, Iran's ambassador to the International Atomic Agency, also denied that Tehran had "restarted enrichment" of radioactive uranium following the US-Israeli strikes on the Islamic republic's nuclear facilities in June 2025.
The Philippines said Thursday that Iran has pledged to allow safe passage for shipments of oil to the import-dependent archipelago through the Strait of Hormuz.
On Thursday, the Philippine Department of Foreign Affairs said a "productive phone conversation" between Foreign Secretary Theresa Lazaro and her Iranian counterpart had opened the door to crucial oil shipments.
"The Iranian Foreign Minister assured the Secretary that Iran will allow the safe, unhindered, and expeditious passage through the Strait of Hormuz of Philippine-flagged vessels, energy sources, and all Filipino seafarers," the foreign affairs department said in a statement.
Lazaro said in a post to X the call had reached a "positive understanding on the safety of our seafarers and the security of our energy supply".
The UAE Ministry of Defence said on Thursday that air defence systems intercepted 19 ballistic missiles and 26 drones launched towards the country, as part of ongoing attacks originating from Iran.
The ministry said that since the start of the escalation, UAE air defences have dealt with a total of 457 ballistic missiles, 19 cruise missiles and 2,038 drones.
It added that the attacks resulted in the deaths of two members of the armed forces while carrying out their national duty, as well as a Moroccan national working with the military. Nine civilians were also killed and 191 others injured, with injuries ranging from minor to severe.
The ministry reaffirmed the importance of readiness and vigilance in confronting threats, pledging to take firm action to safeguard the country’s security, stability and sovereignty.
French President Emmanuel Macron said on Thursday that a military operation to liberate the Strait of Hormuz is "unrealistic", expressing frustration at US President Donald Trump's alternating statements on the Iran war.
"There are those who advocate for the liberation of the Strait of Hormuz by force through a military operation, a position sometimes expressed by the United States," Macron said in South Korea.
"I say sometimes because it has varied, it is never the option we have chosen and we consider it unrealistic," he said.
"It is unrealistic because it would take an inordinate amount of time and would expose anyone crossing the strait to coastal threats from the (Iranian) Revolutionary Guards, who possess significant resources, as well as ballistic missiles, (and) a host of other risks."
He added: "This can only be done in concert with Iran. So, first and foremost, there must be a ceasefire and a resumption of negotiations."
Iran's two largest steel plants have been forced out of action by several waves of US and Israeli attacks, the companies have said.
"Our initial estimate is that restarting these units will take at least six months and up to one year," Mehran Pakbin, deputy head of operations at the Khuzestan Steel Company, was quoted as saying by the Mizan Online website on Thursday.
Mobarakeh Steel Company in central Isfahan province said that its "production lines have completely shut down following the high volume of attacks".
Austria has rejected all US requests for military overflights of its territory since the start of the conflict in the Middle East, a defence ministry spokesman told AFP on Thursday.
"There have indeed been requests and they were refused from the outset," Colonel Michael Bauer said, adding that every time a similar request "involves a country at war, it is refused".
Oil prices extended gains on Thursday in the wake of US President Donald Trump threatening further heavy strikes on Iran, dampening hopes of de-escalation.
The main US oil contract, West Texas Intermediate, jumped 10.3 per cent to $110.47 per barrel.
International benchmark Brent North Sea crude rose 8.2 percent to $109.40 per barrel.
Russian President Vladimir Putin on Thursday called for intensifying political and diplomatic efforts to end the Middle East war during a phone call with Saudi Crown Prince Mohammed bin Salman.
"Both sides emphasised the need for a rapid cessation of hostilities and the intensification of political and diplomatic efforts to achieve a long-term settlement of the conflict," the Kremlin said in a read-out of the call.
The call comes after Ukraine signed an air defence deal with Saudi Arabia as the Gulf nation grapples with Iranian drone attacks.
UN chief Antonio Guterres warned Thursday that the Middle East conflict risked spiraling into a wider war, as he called for an immediate halt to US-Israeli strikes on Iran and Iranian attacks on its neighbors.
"We are on the edge of a wider war that would engulf the Middle East with dramatic impacts around the globe," the secretary-general told reporters in New York.
Cambridge International Education has cancelled traditional June 2026 exams for UAE schools, replacing it with a portfolio of evidence route, in coordination with the UAE Ministry of Education.
The change affects students sitting Cambridge IGCSE, O Level, AS & A Level, and IPQ. Candidates will submit portfolios of their work rather than sit papers at school, a circular sent to British curriculum schools in the UAE on Thursday said.
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Argentina has decided to expel Iran’s chargé d’affaires from the country, in a move that underscores escalating diplomatic tensions between the two nations due to the ongoing regional tensions.
US-Israeli strikes hit a bridge near Tehran on Thursday, which had already been hit around an hour earlier, Iranian state TV reported.
"A few minutes ago, the American-Zionist enemy once again targeted the B1 bridge in Karaj," a city west of Tehran, state TV said, adding that the first strike had caused two civilian casualties.
It said the later attack took place as emergency teams were deployed to the site to help victims of the first strike.
China's foreign minister Wang Yi said on Thursday that US and Israeli attacks on Iran were a violation of international law, Chinese state media reported, as he held calls with his EU, German and Saudi counterparts.
Wang also stressed that the role of the UN Security Council - of which China is a permanent member - "should prevent the escalation of conflict", state broadcaster CCTV said, as the international body debates a draft resolution on the use of force in the Hormuz strait.
UK exam board Pearson Edexcel on Thursday confirmed the cancellation of school exams across the UAE, Bahrain, Kuwait and Lebanon for the May/June 2026 series.
All International GCSE, International A Level and iPLS qualifications will be cancelled, according to an announcement made by Emma Whale, Vice President, International Schools.
She said the decision was taken "in consultation with local authorities and other international awarding bodies in response to the current situation, with the safety of students and staff placed first."
The secretary-general of the Gulf Cooperation Council (GCC) called Thursday for the UN Security Council to authorise the use of force to protect the Strait of Hormuz from Iranian attacks.
"Iran has closed the Strait of Hormuz, prevented commercial vessels and oil tankers from transiting, and imposed conditions on some to pass through the Strait," said Jassem al-Budaiwi, head of the GCC.
He spoke in New York at the first Security Council meeting on cooperation with the GCC, which comprises Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait and Oman.
"We call upon the Security Council to assume its full responsibility and take all necessary measures to protect maritime routes and ensure the safe continuation of international navigation," al-Budaiwi said.
Bahrain has proposed a draft resolution that would greenlight states to use "all necessary measures" to assure free transit through the Strait of Hormuz.
However, the measure has divided the 15-member Security Council.
According to diplomatic sources, Russia, China and France - who each hold veto privileges - have voiced strong objections despite several modifications to the text.
A fifth version of the draft text was distributed to member states on Thursday.
A court in Amman has sentenced a woman to two years in prison after convicting her of insulting the Hashemite Kingdom of Jordan on social media. The court said the young woman posted content on Facebook deemed offensive and inciting against national security, including expressions of support for Iranian attacks targeting sites inside Jordan.
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UK exam board OxfordAQA has cancelled all International GCSE and International A Level exams in the UAE for the May/June 2026 series.
The announcement came in an email to UAE schools on Thursday, signed by Rob Bryson, Director of International Delivery, and seen by Gulf News.
“After consulting closely with The Ministry of Education, schools and other international exam boards, we have made the decision to cancel OxfordAQA exams in your country,” Bryson wrote.
Students will be graded based on evidence of performance and previously banked results.
The Israeli military said on Thursday it had detected a missile launched from Yemen towards Israeli territory, the fourth time it has detected such an attack since the start of the Middle East war.
"The IDF has identified the launch of a missile from Yemen toward Israeli territory, aerial defence systems are operating to intercept the threat," the military said in a statement.
Yemen's Houthi rebels on Wednesday claimed a missile attack on Israel that was reportedly intercepted, their third such claim since the war started.
Kuwait announced that its task force units succeeded in intercepting and downing four drones within the areas under their responsibility over the past 24 hours.
Kuwait News Agency (KUNA) quoted Spokesperson for the Kuwait National Guard Brigadier General Dr. Jadaan Fadhel as saying that the engagement was executed as part of an ongoing operational framework to bolster national security, fortify vital strategic sites, and neutralise potential threats.
Qatar was targeted on Thursday by a number of drones launched from Iran, according to country's Ministry of Defence.
In a statement, carried by Qatar News Agency (QNA), the ministry said that the Qatari Armed Forces successfully intercepted all the drones.
A drone attack targeted the US diplomatic and logistics centre in Baghdad's international airport complex on Thursday, two Iraqi security sources told AFP.
"Two drones targeted the logistics support centre, causing a fire but no injuries," one security source said, adding that one of the drones was shot down "behind the airport". A second source confirmed the incident.
The airport complex houses an Iraqi military base as well as the US facility.
International Organisation for Migration chief Amy Pope told AFP on Thursday in Beirut that the prospect for prolonged mass displacement in Lebanon, where Israel and Hezbollah are at war, were "very alarming".
"I think those prospects are very alarming because you look right now at the level of destruction that's happening and... the further destruction that has been threatened," she said when asked about the possibility of prolonged mass displacement, adding that "even if the war ends tomorrow, that destruction remains and there needs to be a rebuilding".
Iran said on Thursday it was drafting a peacetime protocol that would supervise maritime traffic through the Strait of Hormuz with Oman, state media reported, with Tehran's closure of the vital oil corridor roiling the global economy.
Deputy foreign minister Kazem Gharibabadi told Russia's Sputnik state media that the protocol would apply after the ongoing war with the United States and Israel had ended, setting basic rules to manage ship movements, the IRNA news agency said.
"We are currently finalising the drafting of this protocol and, once it has been finalised internally, we will undoubtedly begin negotiations with the Omani side in order to reach a joint protocol," he said.
Oman has yet to report any such negotiations. Its foreign minister said last month his country was "working intensively to put in place safe passage arrangements for the Strait of Hormuz".
Kuwait’s Ministry of Commerce and Industry has banned the sale and trading of unmanned aerial vehicles, or drones, across all shops and commercial outlets until further notice, under a new ministerial resolution.
The decision, effective from today (Thursday), comes amid ongoing security considerations and aims to regulate the circulation of drones in the local market.
The resolution also nullifies any previous provisions that conflict with the new rules.
Yemen's Houthi rebels announced a fourth missile attack targeting Israel on Thursday, after stepping into the Middle East war in support of their ally Iran last week.
Houthi spokesman Yahya Saree said in a video statement that the group had fired a "barrage of ballistic missiles targeting vital Israeli enemy targets" in the Tel Aviv area.
The Israeli military said earlier it had detected a missile launched from Yemen.
Pakistan's government on Thursday drastically raised fuel prices in response to spiking global energy prices caused by the Iran war, the country's petroleum minister said in a press conference.
The new prices mark an increase of 42.7 per cent in petrol prices and 54.9 per cent in the price of diesel.
"The decision made today is that as per international markets, after the increase in the petrol prices the new price will be Rs458.40 ($1.64 per litre) which will be effective from tomorrow," said the minister, Ali Pervaiz Malik.
As for diesel, "which has great importance for our workers and public transport," the price was set at Rs520.35, he said.
Calling for resumption of talks to resolve the ongoing conflict in West Asia, French President Emmanuel Macron said that it would be "unrealistic" to conduct military operation to liberate the Strait of Hormuz.
"There are those who advocate for the liberation of the Strait of Hormuz by force through a military operation, a position sometimes expressed by the US. "It is unrealistic because it would take an inordinate amount of time and would expose anyone crossing the strait to coastal threats from the (Iranian) Revolutionary Guards, who possess significant resources, as well as ballistic missiles, (and) a host of other risks," Euro News quoted Macron as saying during his State Visit to South Korea.
US Army Chief of Staff Gen. Randy George has stepped down and is retiring, per Pentagon spokesman. This follows a CBS report that Secretary of War Pete Hegseth had asked for his "removal".
He is the highest-ranking US military official to leave during an active war since the conflict began 33 days ago.
Dubai: The Dubai Government has denied reports circulating online that Iran’s Islamic Revolutionary Guard Corps (IRGC) targeted a data centre belonging to US technology company Oracle in Dubai.
In a statement posted on X, the Dubai Government Media Office said the reports alleging that the IRGC had launched or attempted an attack in Dubai were “fake news” and had no basis in fact.
NEW YORK: Jasem Mohamed Albudaiwi, Secretary General of the Cooperation Council for the Arab States of the Gulf (GCC), has called on the Security Council to take all necessary measures to ensure an immediate end to Iran's unprovoked attacks on GCC states.
He further urged the Council to protect waterways, guarantee the continuity of international navigation in all maritime straits, and include GCC countries in any talks or agreements with Iran to enhance regional security and prevent future recurrences.
With flows from Gulf oil significantly curtailed by the tanker squeeze on Hormuz by Iran, Russian crude has surged in demand, rapidly repositioning itself as one of the most sought-after supplies on the global market.
Urals, the Russian crude oil benchmark, surged to $123.45 as of 10.17PM GMT on Thursday (7.17am Tokyo on Friday, April 3, 2026), a 6.44% increase, while Brent crude rose at $109.03, up more than 7.78%, since Trump's speech on the Iran war which drew more questions than answers.
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As the US-Iran war with Iran continues to disrupt global shipping, British Foreign Secretary Yvette Cooper has convened around 40 countries to demand the "immediate and unconditional reopening" of the Strait of Hormuz.
"Now that we are facing these reckless Iranian attacks on international shipping, affecting countries from across the globe who played no part in this conflict, and more than 40 countries coming together for these discussions today, we're clear we need the diplomatic pressure, the economic pressure and also the work being done by military planners on how to keep shipping safe for the long term," she said in comments posted by ITV Politics.
Iran and its allies traded fire with Israel and the United States, as Washington-linked assets across the Middle East were targeted alongside energy and civilian infrastructure -- with the month-long war on Friday showing little sign of easing.
Strikes have increasingly targeted economic and industrial sites, raising fears of wider disruption to global energy supplies and deepening the conflict's impact beyond the battlefield.
Iran fired missiles at Tel Aviv overnight, triggering Israeli air defences and leaving four people lightly wounded, while fresh blasts were heard in Jerusalem after the military warned of incoming fire.
Kuwait announced that its air defences intercepted hostile missile and drone attacks. The Kuwait News Agency (KUNA) quoted the official spokesperson for the Ministry of Defence, Colonel Staff Saud Al-Atwan, stating that the sounds of explosions were the result of air defence systems intercepting the hostile strikes.
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