US-Iran tensions rise as Trump warns Tehran; Saudi Arabia, UAE report drone attacks

Most Asian shares were lower in morning trade on Monday, extending slides in global markets, as the impasse in the Middle East drove oil prices more than two percent higher.

Tokyo shares lost 1.0 percent and Hong Kong was down 1.4 percent, while Shanghai was flat.

Sydney, Bangkok, Taipei, Singapore and Wellington also fell, with Jakarta tumbling 2.7 percent.

Seoul, which has renewed record highs in recent days thanks to the artificial intelligence stock boom, was trading up 1.2 percent.

Data showed that China's consumer spending in April grew at the slowest pace in more than three years - a stark sign of the challenges Beijing faces to reignite domestic activity.

In Tokyo, shares in memory chip maker Kioxia were not yet trading after a reported rush of buy orders following stellar quarterly results on Friday.

In South Korea, Samsung Electronics - which has also profited massively from the AI memory chip boom - resumed union talks in a bid to avoid a strike over bonus payments, due to start Thursday.

Later Monday, traders will have their eye on a meeting of G7 finance ministers and central bank chiefs that kicks off in Paris, with bond selloffs in the spotlight, analysts said.

Then all eyes will be on quarterly results from US chip titan Nvidia, set for Wednesday, which will be scrutinised as tech investors question whether huge spending on AI data centres is justified by potential returns.

Senior Iranian official Mohsen Rezaei has warned the US to lift its blockade of Iranian ports, saying continued pressure could escalate tensions in the Sea of Oman.

Calling the blockade an “act of war”, Rezaei said Iran’s military was ready to respond if necessary, while also stressing that diplomatic efforts were still ongoing.

He added that Washington must “prove” it can be trusted in any negotiations to end the conflict.

Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump discussed the possibility of renewed military action against Iran during a phone call, according to Israel’s state-owned Kan TV.

Citing a senior Israeli official, the broadcaster reported that the United States could join Israel in carrying out strikes if fighting with Iran resumes.

Later in the evening, Netanyahu chaired a cabinet meeting focused on the multiple fronts involving Israel’s ongoing military operations, a government official told Xinhua.

The developments followed fresh warnings from Trump, who signalled that Washington could intensify its confrontation with Iran.

Rising fuel prices and growing economic concerns linked to the Iran conflict are emerging as a political challenge for US President Donald Trump and Republicans ahead of the midterm elections, according to media reports.

Senior administration officials and Republican allies defended Trump’s handling of the crisis, while Democrats accused the White House of deepening economic strain through a prolonged conflict in the Gulf region.

US Trade Representative Jamieson Greer acknowledged on CBS News on Sunday that Americans were feeling the impact of rising fuel prices as the war continued.

“Gas is averaging $4.51 a gallon,” CBS News noted during the interview, citing data showing Americans have spent $45 billion more on fuel since the conflict began compared to the same period last year.

Israeli strikes across the Gaza Strip have killed at least eight Palestinians, including three community kitchen workers in Deir El Balah. Other fatalities were reported in Khan Younis and Beit Lahiya.

In eastern Lebanon, an Israeli air strike near Baalbek killed Palestinian Islamic Jihad commander Wael Abdul Hali and his 17-year-old daughter, Rima, Lebanese state media reported.

US President Donald Trump shared a map of the Middle East with arrows pointing towards Iran in a series of posts on Truth Social, as tensions between Washington and Tehran continued to escalate amid stalled nuclear negotiations.

Trump posted nearly 25 updates over several hours, many featuring AI-generated images of aliens, missile attacks and space warfare against the backdrop of the ongoing Middle East crisis.

One image showed a map of the region with multiple arrows directed at Iran, drawing attention online as rhetoric between the two countries intensified.

The posts came as relations between Washington and Tehran remained strained following months of regional conflict and diplomatic deadlock over Iran’s nuclear programme.

The United Arab Emirates has condemned in the strongest terms the drone attacks targeting the Kingdom of Saudi Arabia, carried out by drones launched from Iraqi airspace, which were intercepted and destroyed after entering the Kingdom’s airspace.

In a statement, the Ministry of Foreign Affairs (MoFA) affirmed that these attacks constitute a violation of the sovereignty of the brotherly Kingdom of Saudi Arabia and a threat to its security and stability. The UAE expressed its full solidarity with Saudi Arabia and its support for all measures aimed at safeguarding its security and stability.

A number of regional allies including Kuwait, Jordan, Saudi Arabia, Bahrain and Egypt strongly condemned the terrorist attack on the UAE’s Barakah Nuclear Power Plant and reaffirmed full solidarity with the country.

US President Donald Trump on Sunday warned Iran "there won't be anything left of them," if Teheran does not quickly agree to a peace deal with the United States.

"For Iran, the Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them," Trump wrote on his Truth Social platform. "TIME IS OF THE ESSENCE!"

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