Iran threatens ‘new fronts’ if US resumes attacks after Trump suspends strikes; UAE denounces sea mines in Strait of Hormuz

Explosions have been heard on Iran’s Qeshm Island on Tuesday, although the cause was not immediately clear and Iranian authorities had yet to issue an official statement, according to Iran’s semi-official Mehr News Agency.

Meanwhile, Iran’s Tasnim news agency later cited an official as saying the blasts were linked to operations to neutralise unexploded munitions on the island.

Qeshm Island, located near the Strait of Hormuz, has witnessed heightened military activity in recent months amid regional tensions and security incidents involving Iran and GCC countries.

The Israeli military on Tuesday warned residents of 12 towns and villages in southern Lebanon to immediately evacuate ahead of expected attacks against Hezbollah, the latest despite a ceasefire.

"Hezbollah's continued violations of the ceasefire compel the IDF to operate against it. The IDF does not intend to harm you. For your safety, we urge you to distance yourself from the area and immediately move at least 1,000 metres away," the military's Arabic-language spokesman Avichay Adraee posted on X.

Lebanon's state-run National News Agency reported a new series of Israeli strikes targeting several locations in southern Lebanon on Tuesday.

Meanwhile, Hezbollah said in a statement that it had targeted a gathering of soldiers and vehicles in northern Israel with "a swarm of attack drones."

The Iran-backed militant group also claimed responsibility for new attacks against Israeli forces operating inside Lebanese territory.

Iran's army warned on Tuesday it would "open new fronts" against the United States if it resumes attacks, after President Donald Trump said he had held off launching a new offensive in hopes of striking a deal.

"If the enemy is foolish enough to fall into the Zionist trap again and launches new aggression against our beloved Iran, we will open new fronts against it, with new equipment and new methods," said army spokesman Mohammad Akraminia, according to Iran's ISNA news agency.

Anwar Gargash, the UAE's Diplomatic Adviser to the President, posted on X warning that the confusion of roles during what he described as Iran's treacherous aggression is deeply alarming, noting that victim states have been cast as mediators, friends have stepped back from being steadfast allies, and that in this most dangerous phase of modern Gulf history, taking a gray or ambiguous position is more perilous than doing nothing at all.

France's Finance Minister Roland Lescure has called on the IMF and World Bank to do more to support countries most vulnerable to the economic fallout from the Middle East conflict, as G7 finance ministers and central bank governors gathered in Paris for a second day of talks.

Ministers were joined by representatives from Gulf states, Brazil and Kenya, as the world's most advanced economies sought to build new partnerships amid the Iran war and mounting pressure on Russia over Ukraine.

"We agree on the fact that the IMF and the World Bank have to step up their game for those countries and make sure we help them," Lescure told reporters, adding that a shortage of fertiliser would have a particular impact on the most vulnerable nations.

The talks also touched on volatility in global bond markets and broader economic strains stemming from the ongoing conflict. Meanwhile, US President Donald Trump said he had paused a planned attack against Iran after Tehran sent a peace proposal to Washington, adding there was now a "very good chance" of reaching a deal limiting Iran's nuclear programme, according to Reuters.

The United Arab Emirates has renewed its condemnation of the illegal and unjustified attacks launched by Iran against the State and neighbouring countries, including the disruption of navigation in the Strait of Hormuz and the targeting of oil and gas infrastructure, during the high-level meeting on protecting energy flows and supply chains. The United Arab Emirates, alongside its partners, affirmed the importance of respecting navigation rights and the freedoms of commercial vessels, in line with international law and Security Council Resolution 2817. The State stressed the necessity of Iran's immediate cessation of all its attempts to obstruct transit traffic in the Strait through the planting of sea mines and the imposition of illegal fees.

Britain's employers reined in their hiring in April, adding to growing signs of the Iran war's impact on the economy. Early payroll data from the tax office showed a heavy fall of 100,000 jobs in the month from March — the biggest drop since May 2020, at the height of the COVID-19 pandemic, though officials stressed the figures were likely to be revised.

Vacancies fell to 705,000 in the three months to April, down from 712,000 in the first quarter of 2026 and the lowest since February 2021. Wage growth, excluding bonuses, stood at 3.4% in the first three months of 2026 compared with the same period last year, in line with economist expectations.

The Bank of England has been closely monitoring wage growth as it assesses inflation pressure in the economy.

The US Department of Defence (also known as the Department of War) has quietly launched the largest drone buildup in American history — ordering 30,000 one-way attack drones with plans to scale beyond 300,000 units by 2028.

But inside that surge lies a vulnerability.

Few outside US defence circles talk about it: every one of those drones runs on rare-earth minerals (magnets) — and, by industry estimates, about 98% of the world’s supply is manufactured in China, according to an industry report.

Now, the US is working hard to create a supply chain for rare earths to replenish its military arsenal, AFP reported.

The EU hopes Tuesday to strike a deal towards implementing its nearly year-old trade pact with the United States - with an increasingly impatient Donald Trump threatening steep new tariffs unless it is done by July 4.

The 27-nation bloc struck an accord with Washington last July setting levies on most European goods at 15 percent, but to the US president's frustration a final version of the text still needs nailing down on the EU side.

"A deal is a deal," the US mission to the EU posted on X Monday, saying the bloc "must live up" to the agreement sealed in Turnberry, Scotland, between Trump and EU chief Ursula von der Leyen.

Negotiators from the EU's parliament and capitals will meet Tuesday night in Strasbourg to push for a compromise that would allow the bloc to meet Trump's deadline and hopefully turn the page on more than a year of transatlantic trade battles.

Short of that, Trump has warned the EU should expect "much higher" tariffs - and has already vowed to raise duties on European cars and trucks from 15 to 25 percent.

India raised prices of petrol and diesel by nearly a rupee a litre on Tuesday, as the government moves to recover losses incurred from high global crude prices. After the hike of roughly 0.9 rupees ($0.0093), petrol will cost 98.64 rupees a litre in Delhi while diesel will be at 91.58 rupees a litre. The world's third-largest importer and consumer of oil is one of the last major economies to raise retail fuel prices after the US-Israeli war on Iran triggered the effective closure of the Strait of Hormuz, according to Reuters.

Oil prices fell sharply in early Asian trade, extending losses after recent volatility tied to disruptions around the Strait of Hormuz began to ease and tanker traffic showed tentative signs of recovery.

Market data at 9:27 am Tokyo time showed:

• WTI crude at $102.5, down $1.87 (-1.79%)

• Brent crude at $109.3, down $2.75 (-2.45%)

• Murban crude at $106.7, down $1.28 (-1.19%)

The declines reflect a cooling of the risk premium that had built up over weeks of near-paralysis in shipping through Hormuz, the narrow waterway that handles roughly a fifth of global oil flows.

Iran’s latest counterproposal does not appear to meet US demands, as per the Institute for the Study of War (ISW), a Washington think-tank. A senior US official and source briefed on the matter told Axios on May 18 that Iran’s counterproposal does not contain a commitment “about suspending uranium enrichment or handing over its existing stockpile of highly enriched uranium (HEU).” US demands have been and continue to be that Iran must give its HEU to the US.

Speaking later at a White House event, Trump said there had been a 'very positive development' and that Arab allies said a deal was near that would leave Iran without nuclear weapons, which Tehran denies pursuing.

"There seems to be a very good chance that they can work something out. If we can do that without bombing the hell out of them, I'd be very happy," Trump said.

Iran has repeatedly rebuffed Trump's offers and has exerted control over the Strait of Hormuz, the vital waterway into the Gulf, sending global oil prices spiraling.

He was quoted as saying: "We were getting ready to do a very major attack tomorrow, and I put it off for a little while—hopefully maybe forever... because we've had very big discussions with Iran, and we'll see what they amount to."

The Muslim Council of Elders, under the chairmanship of His Eminence Dr. Ahmed Al-Tayeb, Grand Imam of Al-Azhar, strongly condemned the targeting of the vicinity of the Barakah Nuclear Power Plant in the Al Dhafra region of the United Arab Emirates by drones. The Council also affirmed solidarity with the UAE. No casualties were reported in the attacks.

The US Treasury Department issued a temporary 30-day general licence allowing the most energy-vulnerable nations to access Russian oil stranded at sea, aiming to stabilise global crude markets and redirect supply to "countries in need". Treasury Secretary Scott Bessent, in announcing the move, said the extension provides flexibility for specific licenses as needed.

The action is intended to help reroute existing supply away from China, which has been stockpiling discounted Russian oil, while ensuring oil reaches nations facing energy shortages.

Extending by 30 days US sanctions waiver for Russian oil cargoes already at sea, is expected to ease global energy prices amid Iran war risks.

The latest "temporary 30-day general license" will "provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea," Treasury Secretary Scott Bessent said in a social media post.

The International Atomic Energy Agency (IAEA), affiliated with the United Nations, is closely monitoring the situation at the Barakah Nuclear Energy Plant in Abu Dhabi through continuous coordination with the relevant UAE authorities, while expressing its full readiness to provide assistance if needed.

The remarks were made this evening by Farhan Haq, Deputy Spokesman for the UN Secretary-General, who renewed the Secretary-General’s deep concern over reports received by the United Nations indicating that drone attacks yesterday caused a fire in an electricity generator within the vicinity of the Barakah plant.

In a lengthy post on his Truth Social platform, US President Donald Trump said: "I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond."

He added: "This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN! Based on my respect for the above mentioned Leaders, I have instructed Secretary of War, Pete Hegseth, The Chairman of The Joint Chiefs of Staff, General Daniel Caine, and The United States Military, that we will NOT be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached. Thank you for your attention to this matter! President DONALD J. TRUMP."

Day 80: Trump says 'holding off on attack on Iran tomorrow'

Day 79: Trump says 'clock is ticking' for Iran

Day 78: Iran plans new Strait of Hormuz toll system

Day 77: Israel and Lebanon extend ceasefire by 45 days: US

Day 76: World leaders call for security in Strait of Hormuz

Day 75: Trump arrives in Beijing for summit with Xi

Day 74: Iran signals potential 90% Uranium enrichment

Day 73: Trump calls Iranian response 'totally unacceptable'

Day 72: 'As of today, Tehran’s restraint is over': Iran official

Day 71: Iran keeps US waiting on response to peace plan

Day 70: US fires on Iran tankers as talks hang in balance

Day 69: Iran creates agency to control shipping at the Strait of Hormuz

Day 68: Trump threatens 'higher level' bombing of Iran if deal not agreed

Day 67: 'Project Freedom' paused 'for a short period': Trump

Day 66: UAE intercepts 12 ballistic missiles, 3 cruise missiles, 4 drones