Iran has weighed striking U.S. military assets in Europe as its standoff with Washington deepens, with potential targets reportedly including bases in Bulgaria and Cyprus. The UAE has severed trade with Tehran after accusing it of firing ballistic missiles toward its waters, and ceasefire talks between the U.S. and Iran have collapsed. Iran's military chief has separately warned Gulf states against aiding U.S. forces, widening the standoff beyond the two direct combatants.
Iran has considered attacking U.S. military targets in Europe if the war escalates further, the Financial Times reported Wednesday, citing two regime insiders. The FT's report named U.S. assets in Bulgaria and Cyprus as potential targets under consideration. CNBC said it reached out to Iran's Ministry of Foreign Affairs for comment and has not independently verified the report.
The United Arab Emirates said Wednesday it had paused all trade, commercial exchanges, and financial transactions with Iran until further notice. The move follows the UAE's Ministry of Defense saying Tuesday it had detected two ballistic missiles launched from Iran toward its territorial waters.
President Trump said Tuesday the U.S. is not currently in any talks with Tehran and has no plans to restart them, ruling out extending the 60-day ceasefire that expired Monday. He has repeatedly said the Strait of Hormuz is open and operating under U.S. control, but observed ship traffic through the passage remains extremely low. An attack on a cargo vessel transiting the strait earlier this week killed one person.
Iran's military chief, Ali Abdollahi, warned Gulf states against aiding the United States military, according to Crypto Briefing. Recent exchanges of missile and drone strikes have intensified the conflict, involving Gulf nations including Bahrain, Kuwait, Qatar, the UAE and Oman. Market pricing suggests a decreased likelihood of a U.S.-Iran deal in 2026, with prediction-market probabilities for a deal dropping. Talks between Washington and Tehran show no sign of resuming.
Sources: CNBC, Crypto Briefing
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