A fragile U.S.–Iran ceasefire appeared close to collapse after Iranian drones and missiles struck the United Arab Emirates and U.S. forces reportedly sank Iranian boats in the Strait of Hormuz.

President Donald Trump warned Iran of severe retaliation if it targets U.S. ships and claimed additional attacks, including on a South Korean vessel, while suggesting allied support for protecting shipping routes.

The escalation drove global markets down and pushed oil prices higher amid fears of prolonged disruption to global trade through the strategic waterway.

The UAE said its air defenses intercepted multiple missiles and drones, reported injuries, and later restricted its airspace after condemning the attacks, CNBC has reported.

Iran-linked sources appeared to claim responsibility for strikes on UAE targets, while tensions continued despite Trump not formally declaring the ceasefire broken.