Iran Strikes Saudi CIA Station; UAE Weighs Airstrikes on Iran

President Donald Trump announced that the U.S. Navy will escort oil tankers passing through the Strait of Hormuz. While Trump declared that "Iran's military capabilities have been neutralized," Iran countered that it "hasn't even touched its most advanced weapons," leaving no exit from the conflict in sight. Here is a summary of overnight developments related to Iran.

Trump Pledges Tanker Escorts; Market Impact Uncertain

On the afternoon of May 3 local time, Trump posted on Truth Social: "Under any circumstances, the United States will guarantee the free flow of global energy." He added that "the U.S. Navy will escort tankers through the Strait of Hormuz as quickly as possible if necessary."

Trump also stated he had "ordered the U.S. International Development Finance Corporation to provide insurance and guarantees at very reasonable rates for all maritime trade passing through the Gulf, particularly in the energy sector."

The announcement came after Iran's Islamic Revolutionary Guard Corps declared a blockade of the Strait of Hormuz, triggering a surge in oil prices. With November midterm elections approaching, rising domestic fuel prices could prove fatal to Trump's political standing.

Brent crude futures, which had been trading around $84 per barrel—up 7-8% from the previous session—dropped to $78 immediately following Trump's statement. However, as of 5 p.m. Eastern Time (7 a.m. May 4 Korea time), Brent was trading at $81.94, up approximately 5.4% from the previous session. WTI crude was trading at $75 per barrel, up about 5.1%.

Iran Activates Khamenei's Emergency Plan; U.S. Bombs Leadership Electoral Body

Fighting has intensified. U.S. and Israeli forces bombed and collapsed the building housing the Assembly of Experts, the constitutional body that elects Iran's Supreme Leader.

Iran's semi-official Fars News Agency reported that "the final vote to elect Ayatollah Ali Khamenei's successor could be postponed until next week, following Khamenei's funeral."

Combat is likely to continue in the near term, as Iran will probably decide whether to negotiate with the United States only after its official top leadership is constituted.

The Israeli military also announced it had "attacked a nuclear weapons development research facility inside Iran."

Axios reported that the UAE is considering striking Iranian missile bases to prevent Iranian drone and missile attacks. U.S. military casualties remained unchanged at six, while more than 700 have died in Iran.

Dubai authorities in the United Arab Emirates reported that a fire broke out near the U.S. Consulate following a drone attack. The Wall Street Journal noted that "the Dubai U.S. Consulate has long served as a base for American diplomats handling Iran issues."

The Washington Post, citing multiple sources, reported that "drones attacked the Central Intelligence Agency station at the U.S. Embassy in Saudi Arabia on May 2," calling it "a symbolic victory for Iran." The U.S. government had previously confirmed that two drones attacked the U.S. Embassy compound in Riyadh, Saudi Arabia, but did not disclose whether the CIA was among the targets.

The Financial Times, citing sources inside the Iranian regime, reported that "Iranian forces are executing Khamenei's plan for regional war escalation."

According to the report, Khamenei and his inner circle developed detailed contingency plans following heavy losses during the "12-Day War" last June, preparing for future U.S. and Israeli attacks. The strategy involves bombing energy facilities and airports in neighboring countries to create chaos across the Middle East and destabilize global markets—and they are now implementing it.

One official said: "We have no choice but to start a big fire. When they crossed red lines that violate international law, we can no longer play by the rules of the game."

Trump: 'Iran's Military Neutralized' vs. Iran: 'We Haven't Used Advanced Weapons'

Verbal sparring between the U.S. and Iran has also escalated. During a summit with German Chancellor Friedrich Merz at the White House, Trump said: "Iran's navy and air force have been neutralized, and Iran's missile stockpile is rapidly diminishing."

Iran's Defense Ministry spokesman responded: "We will not deploy all our advanced weapons and equipment in the first few days. We have the capability to defend longer than the war plans our enemies have declared and to conduct offensive defense."

Trump also clashed with Spain on the same day. After the Spanish government refused to allow U.S. forces to use its naval and air bases, Trump threatened to "cut off all trade with Spain."

Spain fired back: "We have prepared measures to mitigate the impact of a trade halt with the United States. President Trump must respect international trade law."

Meanwhile, France dispatched the Charles de Gaulle aircraft carrier strike group to the Mediterranean. France has defense agreements with the UAE, Qatar, and Kuwait. The deployment is interpreted as a response to Iranian attacks and an effort to secure passage through the Strait of Hormuz, the Red Sea, and the Suez Canal.