US-Iran conflict: UAE on alert; India allocates $27 billion credit guarantee for businesses; countries slam Iran's unprovoked attacks

US President Donald Trump urged Iran Tuesday to "do the smart thing" and make a deal, saying even as a Middle East ceasefire teetered that he did not want to kill more Iranians.

"They should do the smart thing, because we don't want to go in and kill people. Really don't," Trump told reporters in the Oval Office when asked about Iran. "I don't want to, it's too tough."

US President Donald Trump on Tuesday sought to minimise the war with Iran, calling it "a little skirmish."

"We're in a little skirmish military. I call it a skirmish, because Iran has no chance. They never did. They know it," Trump said during an Oval Office event on physical fitness among American kids.

Trump often touts the conflict as a resounding success, insisting for example that Iran's navy has been destroyed.

He sometimes openly calls it a war but more often tries to minimize it because the war is unpopular at home.

On Monday he called it a "mini-war."

And last month he described US military operations against Iran as "a little excursion."

The Indian government approved a $27.3 billion credit guarantee scheme on Tuesday to help businesses survive short-term cash problems caused by the Middle East war, including airlines hit by surging fuel prices.

The scheme is intended to help businesses get access to loans until March next year so they can ride out the crisis, prevent layoffs and avoid an economic slowdown.

"The proposed credit guarantee scheme is a major step to help businesses... and the airline sector, to ensure their additional working capital needs," a government statement said.

"It will also promote uninterrupted domestic production and maintain the resilience of the ecosystem," it said.

The proposal was approved by a meeting of Prime Minister Narendra Modi's cabinet on Tuesday.

The credit line will operate for five years for most businesses and seven years for airlines, the statement said.

An Israeli court on Tuesday extended the detention of two foreign activists taken from a Gaza-bound flotilla by six days, a lawyer representing them said.

Spanish national Saif Abu Keshek and Brazilian Thiago Avila appeared before a court in the southern city of Ashkelon for their second hearing, after being brought to Israel for questioning last week.

The extension is to allow police more time to interrogate them, the pair's lawyer said.

The two, held in a prison in Ashkelon, were among dozens of activists aboard a Gaza-bound flotilla intercepted by Israeli forces in international waters off the coast of Greece early on Thursday.

A US official said that President Donald Trump may issue an order later this week to resume military action against Iran if diplomatic efforts remain stalled. The official told Axios that a senior member of the Trump administration had warned Iran on Sunday against interfering with the US operation to guide ships through the Strait of Hormuz.

Saqr Ghobash, Speaker of the Federal National Council (FNC), received a cable from Ahmed bin Salman Al Musallam, Speaker of the Council of Representatives of the Kingdom of Bahrain, expressing Bahrain's full solidarity with and support for the UAE.

In the cable, the Bahraini Speaker affirmed the Kingdom's condemnation and denunciation of any acts targeting the UAE's security, stability, or the safety of its civilian facilities.

He stressed Bahrain's rejection of anything that could threaten regional security, undermine stability, or violate relevant international laws and conventions.

He highlighted the deep fraternal and historic ties between the UAE and Bahrain under the leadership of King Hamad bin Isa Al Khalifa of Bahrain and UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, affirming that the UAE's security is an integral part of Bahrain's security.

Air defence systems are currently responding to a missile threat. Please remain in a safe location and follow official channels for warnings and updates, warns National Emergency Crisis and Disasters Management Authority.

Ministry of Defense confirms that the sounds heard in the various areas of the country are the result of the UAE's air defence systems intercepting ballistic missiles, cruise missiles, and drones.

Wall Street stocks bounced early Tuesday, resuming an upward climb on another batch of solid US earnings as oil prices retreated.

After jumping Monday on rising US-Iran tensions over the Strait of Hormuz, oil prices retreated Tuesday after Maersk said one of its ships had successfully sailed through the strait under US escort.

Iran's blockage of the waterway has lifted oil prices more than 60 per cent since mid-February.

About 10 minutes into trading, the Dow Jones Industrial Average was up 0.2 per cent at 49,057.10.

The broad-based S&P 500 gained 0.6 per cent to 7,243.06, while the tech-rich Nasdaq Composite Index jumped 0.9 per cent to 25,303.59.

The Minister of Foreign Affairs of Ukraine, Andrii Sybiha, strongly condemned Iran's recent missile and drone attacks that targeted the UAE, affirming that they are unacceptable and undermine regional and global security.

In a post today on the X platform, Sybiha expressed his country's solidarity with the UAE and its people, calling for de-escalation and diplomacy.

He emphasised that Ukraine consistently opposes all acts of aggression and supports efforts to strengthen international security.

Finland has condemned the missile and drone attacks that targeted the United Arab Emirates. The Minister for Foreign Affairs of Finland, Elina Valtonen, said that these attacks represent a clear violation of sovereignty and international law, are unacceptable, and must stop immediately.

Minister Valtonen expressed, in a post today on the X platform, her full solidarity with the UAE, its leadership, government, and people, emphasising that diplomacy and negotiations are the only way to achieve lasting peace.

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan received a phone call from Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, during which he condemned the Iranian terrorist attacks targeting civilians and civilian sites in the UAE, noting that they constitute a violation of sovereignty, international law, and the UN Charter and pose a threat to regional security and stability.

US forces launched an effort to guide commercial ships through the Strait of Hormuz on Tuesday, with the first two ships, both American-flagged merchant vessels, sailing through unscathed. Central Command said its effort to establish a safety corridor in the key waterway for oil and gas transport involves guided-missile destroyers, more than 100 aircraft and 15,000 service members.

Defense Secretary Pete Hegseth said the forces prefer a peaceful effort to "guide" the more than 22,500 mariners stuck on more than 1,550 vessels out of the Gulf, but are ready if needs change. "This is a temporary mission for us," Hegseth said. "We expect the world to step up." Iran has denounced the move as a ceasefire violation.

It is unclear what will follow.

FIFA has invited the Iranian football federation (FFIRI) to its headquarters for talks over the country's participation at this year's World Cup, a source told AFP on Tuesday.

Iran's presence at the tournament, held in the United States, Canada and Mexico between June 11 and July 19, has been shrouded in uncertainty since the eruption of war in the Middle East in February following strikes by the United States and Israel.

The source said FIFA had asked the FFIRI to visit its Zurich base "by May 20 to prepare for the World Cup".

Last week, FIFA president Gianni Infantino reiterated Iran will play their World Cup games in the United States as scheduled.

"Let me start by the outset, confirming straightaway that of course Iran will be participating at the FIFA World Cup 2026," Infantino said as he addressed delegates at the FIFA Congress in Vancouver.

"And of course, Iran will play (in) the United States of America."

US forces are ready to resume major combat operations against Iran if they are ordered to do so, the top US military officer said on Tuesday.

US Central Command "and the rest of the joint force remain ready to resume major combat operations against Iran if ordered to do so. No adversary should mistake our current restraint with a lack of resolve," General Dan Caine told reporters.

The United States is "not looking for a fight" over the Strait of Hormuz and its ceasefire with Iran still holds, but any attack on commercial shipping will be met with a "devastating" response, the Pentagon chief said Tuesday.

The warning from Pete Hegseth came on the second day of a US effort to facilitate the transit of commercial ships through the Strait of Hormuz, which Iran had closed in response to the US-Israeli war against the Islamic republic.

"We're not looking for a fight. But Iran also cannot be allowed to block innocent countries and their goods from an international waterway," Hegseth told reporters.

"If you attack American troops or innocent commercial shipping, you will face overwhelming and devastating American firepower," the Pentagon chief said.

Top US military officer General Dan Caine meanwhile said US forces are ready to resume major combat operations against Iran if ordered to do so.

"No adversary should mistake our current restraint with a lack of resolve," said Caine, who spoke alongside Hegseth.

French President Emmanuel Macron will speak with his Iranian counterpart Masoud Pezeshkian later on Tuesday, as he pushed for Tehran to reopen the Strait of Hormuz.

"I will be speaking with the Iranian president shortly," Macron told reporters at a press conference in Yerevan, adding that France had long advocated for "the restoration of freedom of navigation" in the vital waterway.

Global stocks diverged Tuesday as investors weighed first-quarter corporate earnings alongside uncertainty over the fragile US-Iran ceasefire.

Oil prices pulled back but held on to most of Monday's sharp gains, after the two sides traded fire as they vie for control of the crucial Strait of Hormuz.

London's FTSE 100 index fell one per cent as traders returned from the UK bank holiday.

The index was weighed by a sharp drop to the share price of banking giant HSBC, whose first-quarter earnings missed expectations as profits were hit by a surprise $400 million fraud-related charge and economic risks from the Middle East crisis.

Nikos Christodoulides, President of the Republic of Cyprus, strongly condemned the missile and drone attacks that targeted the UAE, expressing his full solidarity with the UAE's leadership and people.

He affirmed that Cyprus stands firmly alongside the UAE and its regional partners, underscoring his country's commitment to de-escalation and respect for international law in a way that contributes to enhancing security and stability.

He also noted that the security of the region is inextricably linked with the security of Europe.

 Global Village in Dubai will remain open and fully operational today.

Gulf News can confirm that the popular outdoor multicultural destination will continue to welcome guests and reassured visitors that operations were running as scheduled.

Pakistan's Prime Minister Shehbaz Sharif strongly condemned the Iranian missile and drone attacks on civilian infrastructure in the UAE, expressing full solidarity with President His Highness Sheikh Mohamed bin Zayed Al Nahyan.

Asian stocks sank Tuesday with a fresh spike in Middle East tensions fanning fears over the fragile US-Iran ceasefire, as the two sides appeared no closer to a deal to reopen the Strait of Hormuz.

And while oil prices fell, they held most of the huge gains seen Monday after the two countries traded fire over the key waterway and the United Arab Emirates reported a strike on an installation.

The exchanges came after Donald Trump announced a mission called "Project Freedom" to guide ships from neutral countries out of the Gulf, saying it was a humanitarian effort to help stranded crews.

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan received a phone call from Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, condemning the Iranian terrorist attacks targeting civilian sites and facilities in the UAE.

His Highness Sheikh Tamim bin Hamad Al Thani noted that the attacks constitute a violation of the UAE’s sovereignty and a threat to its security, stability and territorial integrity. He affirmed Qatar’s full solidarity with the UAE and its support for all measures taken to safeguard its security.

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan received a phone call from Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, during which he condemned the Iranian terrorist attacks targeting civilians and civilian infrastructure in the UAE, noting that they constitute a violation of the country’s sovereignty and of international law, and undermine regional security and stability.

Belgium has strongly condemned the recent Iranian attacks on the United Arab Emirates and expressed full solidarity with the Emirati people, describing the attacks as a flagrant violation of international law.

In a statement on Tuesday, Belgian Foreign Minister Maxime Prévot expressed full solidarity and support for the people of the UAE, following what he described as renewed, unjustified Iranian attacks. He condemned the incidents as a clear breach of international law and stressed that the territorial integrity of Gulf states must be respected.

UAE Presidential Adviser Dr. Anwar Gargash responded on X on Tuesday, May 5, 2026, to the wave of international condemnation of the Iranian attacks, expressing appreciation for global support while squarely placing blame on Tehran. Gargash wrote: "We appreciate and value the messages of solidarity from the Gulf, Arab, and international communities with the United Arab Emirates, which condemn and denounce the treacherous Iranian attack, and reflect the international community's commitment to a system based on values and responsibility, one that rejects rogue actions and isolates their perpetrators. These positions affirm that Iran is the aggressor party, responsible for exacerbating the crisis in the Arabian Gulf, and the source of danger and threat to its security and stability."

Indian Prime Minister Narendra Modi took to X on Tuesday, May 5, 2026, strongly condemning the Iranian attacks on the UAE following confirmation that three Indian nationals were among the injured. Modi wrote: "Strongly condemn the attacks on the UAE that resulted in injuries to three Indian nationals."

Iran's Parliament Speaker Mohammad Bagher Ghalibaf warned on Tuesday, May 5, 2026, that a new strategic reality is emerging in the Strait of Hormuz, saying the "new equation of the Strait of Hormuz is in the process of being solidified." Ghalibaf squarely blamed the United States for jeopardising the security of shipping and energy transit through the critical waterway.

South Korea said Tuesday it will "review its position" on joining US operations in the Strait of Hormuz after President Donald Trump urged Seoul to take part following an apparent Iranian attack on one of its ships.

An explosion and fire were reported on a South Korean cargo vessel on Monday in the key waterway, which has been effectively blocked since the Mideast war erupted on February 28.

South Korea's foreign ministry said Tuesday that all 24 crew members aboard the stricken HMM Namu -- including six South Korean nationals -- were unharmed. Trump said the incident should prompt South Korea to join American efforts to guide stranded ships through the strait, a major artery for the fuel exports that Seoul relies on. 

Iranian Foreign Minister Seyed Abbas Araghchi took to X on Tuesday, May 5, 2026, cautioning the United States against pursuing a military resolution to the Strait of Hormuz crisis as US-Iran nuclear talks continue with Pakistan's mediation.

Araghchi wrote: "Events in Hormuz make clear that there's no military solution to a political crisis. As talks are making progress with Pakistan's gracious effort, the US should be wary of being dragged back into quagmire by ill-wishers. So should the UAE. Project Freedom is Project Deadlock."

India's Ministry of External Affairs has condemned the Iranian attack on Fujairah, confirming that three Indian nationals were among those injured. Official Spokesperson of the Ministry issued a statement on Tuesday, May 5, 2026, calling for an immediate halt to hostilities and urging diplomatic resolution to the crisis.

The United Kingdom, France, Germany and Saudi Arabia called for de-escalation in the Middle East following reported attacks on the United Arab Emirates.

Britain's Prime Minister said that the "escalation must cease", while German Chancellor Friedrich Merz wrote on X that "Tehran must return to the negotiating table and stop holding the region and the world hostage." 

A senior Iranian military official did not deny the fresh strikes but said on state television that the Islamic republic had "no pre-planned programme to attack the oil facilities in question".

"What happened was the product of the US military's adventurism to create a passage for ships to illegally pass through" the Strait of Hormuz, the official said. "The US military must be held accountable for it".

Canada strongly condemned Iran's unprovoked missile and drone attacks on the UAE.

"We stand in solidarity with and the people of the United Arab Emirates and commend defensive efforts to protect civilians and civilian infrastructure," Canadian Prime Minister Mark Carney said in a post on X.

Japan has taken delivery of its first stockpile of oil from Russia since global supplies were choked off by the closure of the Strait of Hormuz at the start of the Iran war, reports said.

A tanker carrying crude that was produced as part of a Sakhalin-2 natural gas development project reached the coast of Imabari in western Japan on Monday, TV Tokyo, the Asahi Shimbun daily and other media said Monday, citing unnamed officials of wholesaler Taiyo Oil.

Taiyo Oil received a request from the economy ministry to take in the petroleum, the reports said.

The crude is expected to be sent to a refinery, where it will be turned into gasoline, naphtha - used to make various products from plastics, chemical fibers to paints - and other petroleum products, the reports said.

Officials of the company could not immediately be reached to confirm the report.

A probe will determine cause as crew confirmed safe amid regional shipping disruption

A South Korean-operated vessel that caught fire following an explosion in the Strait of Hormuz on Monday will be towed to a nearby port for inspection and repairs, Seoul’s foreign ministry said.

Authorities said a formal investigation will be carried out to determine the exact cause of the incident once the vessel reaches port.

The ship had 24 crew members on board, including six South Koreans, with no casualties reported.

Officials also noted that 26 South Korea-related vessels have been stranded in the Strait since the outbreak of conflict in the Middle East, underscoring growing disruption to regional shipping routes.

Iranian state media has reported that a US military operation in the Strait of Hormuz resulted in the deaths of five civilians, disputing US claims that the targeted boats were linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).

According to the Tasnim news agency, Iranian authorities said an investigation found that the vessels struck were civilian cargo boats carrying goods and passengers, travelling from Khasab in Oman towards the Iranian coast.

A military official was quoted as saying US forces “attacked and fired upon two small cargo boats” and that the operation reflected “fear” of Iran’s fast-boat capabilities in the region.

The allegations have not been verified, and there has been no immediate response from US authorities regarding the Iranian claims.

The UAE Ministry of Education has announced a nationwide shift to distance learning from Tuesday, May 5, to Friday, May 8, 2026, covering students, teachers, and administrative staff across all nurseries and public and private schools. The measure has been taken to ensure the safety and wellbeing of the educational community amid the ongoing security situation, with authorities set to review the decision on Friday and noting the period may be extended if necessary.

The United States has deployed warships and military aircraft across the Middle East as part of an expanded operation enforcing a naval blockade against Iran and ensuring the continued flow of commercial traffic through the Strait of Hormuz.

The mission, known as Project Freedom, includes more than 100 land- and sea-based aircraft, among them US Air Force F-16 fighter jets, operating alongside naval forces in the region.

US officials said the deployment is aimed at protecting American forces and safeguarding commercial shipping routes amid rising tensions in the Gulf. The operation is focused on maintaining maritime security and supporting the movement of vessels through one of the world’s most critical energy corridors.

Early on Tuesday, Iran’s Foreign Minister Abbas Araghchi said on X that both the US and the UAE “should be wary of being dragged back into quagmire.”

In similarly vague terms, Iranian state television earlier quoted an anonymous military official as saying Tehran had had “no plan” to target the UAE or one of its oil fields.

“The incident resulted from US military adventurism to create an illegal passage,” the official was quoted as saying about the oil facility attack, apparently referring to Trump’s latest efforts to reopen the strait, a critical waterway for global energy.

Level 3 advisory stays as authorities issue nationwide warnings. The US Department of State has advised citizens to reconsider travel to the UAE following mobile alerts warning of potential aerial threats issued by the UAE Ministry of Interior.

The US maintains a Level 3 travel advisory, urging heightened caution. The US Mission to the UAE said it is monitoring the situation closely and advised Americans to follow local safety instructions, including shelter guidance if needed.

The US Embassy Abu Dhabi and US Consulate General Dubai remain open under ordered-departure status, with non-essential staff relocated. Routine visa services are suspended.

Residents are urged to stay alert, monitor official updates, and keep emergency supplies ready as the situation continues to evolve.

Paris: French President Emmanuel Macron has condemned Iran’s strikes on the UAE, describing them as “unjustified and unacceptable” and pledging continued French support for the UAE and regional allies.

“As it has done since the start of the conflict, France will continue to support its allies in the Emirates and in the region for the defence of their territory,” Macron said in a post on X.

Shipping company Maersk said one of its US-flagged commercial vessels has successfully exited the Strait of Hormuz under a US military escort. The news came after the US Navy reportedly hit Iranian fast boats amid reports of IRGC attacks on a UAE oil facility.

Benchmark Brent crude futures surged early Tuesday, jumping 5.8% to $114.44 a barrel — up $6.27 — as concerns over supply pressures reverberated across global markets. Murban crude also climbed, gaining 3.4% to $107.30 by about 7:35 a.m. in Tokyo.

US President Donald Trump’s rhetoric to “blow off the face of the Earth” any Iranian vessel targeting the US military in Hormuz Strait or the broader Arabian peninsula underscores how high the stakes are around freedom of navigation through the Strait of Hormuz. Amid reports that the US Navy has blown up 6 small IRGC boats and the renewed Iranian regime attacks on the UAE, the "double blockade" has hardened: Iran is unable to move millions of barrels of their oil due to the US naval blockade — and Iran's threat over Hormuz choking seaborne trade through the narrow passage for the rest of the world.

It remains uncertain whether the fragile ceasefire between the US and Iran will hold, especially after President Donald Trump warned that Iranian forces will be “blown off the face of the Earth” if they attempt to target US ships in the Strait of Hormuz or the broader Arabian Gulf.

The statement comes amid renewed clashes in the strategic waterway, where both sides have exchanged fire. On Monday, US forces destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones fired by Tehran as the regime seeks to thwart US naval effort ​to open shipping through Hormuz.

The US Central Command launched "Project Freedom" on Monday as Trump seeks to wrest control of the critical waterway from Iran.

The Sharjah Private Education Authority has announced a temporary shift to distance learning across all educational institutions in the emirate, including private schools and nurseries.

The measure will take effect from Tuesday, 5 May 2026, until Thursday, 7 May 2026, and applies to all students as well as administrative and teaching staff.

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

Day 65: Iran says US options are 'impossible' war or 'bad deal'

Day 64: Iran tightens grip on Hormuz waters under new IRGC rules

Day 63: Trump says 'not satisfied' with new Iran proposal

Day 62: Iran's supreme leader says, 'US suffered disgraceful defeat'

Day 61: Iran's Ghalibaf mocks Trump's blockade

Day 60: Blockade: US Marines board ship near Hormuz