UAE Issues Missile Warning as Rising Tensions Risk US-Iran Truce

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(Bloomberg) — The United Arab Emirates on Monday issued a missile threat warning for the first time since a ceasefire between the US and Iran took hold about a month ago, underscoring the fragility of diplomatic efforts to end a war that has killed thousands and disrupted global energy supplies.

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The alert came hours after an oil tanker owned by the UAE’s state oil company Abu Dhabi National Oil Co. was struck by Iranian drones in a separate incident outside the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas transited before the war began in late February. It was unclear whether the warning was triggered by projectiles aimed at the UAE or related to the escalation in Hormuz.

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The attack follows President Donald Trump’s plans — announced Sunday — to restore transit through the strategic waterway and help stranded vessels exit the Persian Gulf. The operation was set to begin Monday, with the US military pledging support, including guided-missile destroyers, aircraft and drones. Two US-flagged merchant ships have so far transited the strait, the US military said, while Iran said it would attack US forces if they enter Hormuz.

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Oil prices rose amid signs of a flare up in tensions in the Middle East, with international benchmark Brent trading 2.5% higher at just under $111 a barrel.

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The warnings against US military presence in Hormuz came hours after Trump announced the operation.

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Iran’s semi-official Fars news agency said the Islamic Republic’s military fired warning shots at US Navy ships after they made an attempt at approaching the Strait of Hormuz. Fars said cruise missiles, rockets and combat drones were used by the Iranian forces.

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The US military denied an earlier Fars report that a US navy ship had been struck by Iran.

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Tasnim, another Iranian news agency, announced earlier Monday that the government had “redefined the control zone” in the strait and effectively set out maritime borders within which Tehran would regulate shipping traffic.

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‘Project Freedom’

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When announcing the plans to guide stranded ships out of the Persian Gulf — dubbed Project Freedom — Trump said some of the vessels were running out of food. He said that several countries have asked the US for help in freeing up their ships.

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“The Ship movement is merely meant to free up people, companies, and Countries that have done absolutely nothing wrong — They are victims of circumstance,” Trump wrote late Sunday in a social media post. “If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully.”

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The plan has left shipping executives perplexed, with few details provided by the president.

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An “enhanced security area” has been established by the US to support transits, according to the Joint Maritime Information Center on Monday. JMIC, a multinational body that analyzes security threats in the area, advised vessels to consider crossing the waterway through Omani waters. It warned of the presence of mines north of Oman.

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Trump’s announcement came amid an impasse between Iran and the US. A shaky ceasefire has been in place since April 7, with the sides struggling to agree to peace talks. Trump, in the same Truth Social post, talked of ongoing discussions with Iranian authorities that “could lead to something very positive for all.”