The Financial Times reported on Wednesday, citing two administration insiders, that Iran is considering attacking U.S. military targets in Europe if the war escalates.
The FT reported that US assets in Bulgaria and Cyprus were considered as potential targets.
CNBC reached out to Iran’s Foreign Ministry for comment, but it has not independently verified this article.
Negotiations between Washington and Iran to end the war have stalled with little sign of restarting, leaving the warring sides to consider the next steps in the protracted conflict.
UAE cuts off trade with Iran
The United Arab Emirates announced on Wednesday that all “trade, commercial exchanges and financial transactions” with Iran would be suspended until further notice. The UAE Ministry of Defense announced on Tuesday that it had detected two ballistic missiles launched from Iran into its territorial waters.
President Donald Trump said Tuesday that the United States is not currently in any talks with the Iranian government and has no plans to resume talks. He also ruled out extending the 60-day ceasefire agreement, which expired on Monday after the deal effectively collapsed.
The key point of contention remains sea control of the Strait of Hormuz. President Trump reiterated that the vital shipping waterway is open and operating under U.S. control.
However, vessel traffic passing through this route is still observed to be extremely low. Earlier this week, a cargo ship transiting the strait was attacked, leaving one person dead.
Fox News quoted an Iranian military spokesperson on Tuesday as saying that ships attempting to pass through the strait “will find some beautiful holes in their hulls.”
Meanwhile, President Trump expanded his verbal attacks on longtime U.S. allies. The president on Monday threatened to “bomb” Oman if the Gulf state “gets in the way” of his goals in the Middle East.
He also accused Secretary of Defense Pete Hegseth of failing to support South Korea’s military operations in Iran and ordered him to “significantly scale back” joint training exercises with South Korea, citing its friendly relationship with North Korean leader Kim Jong Un.
— CNBC’s Emma Graham and Spencer Kimball contributed to this article.
