US defense chief says Iran fires missiles from schools and hospitals

A fire broke out at Abu Dhabi’s Ruwais Industrial Complex after a drone attack on Tuesday, the UAE government media office said, adding that no injuries were reported at the site, which houses Abu Dhabi National Oil Company facilities.

The biggest oil refinery at Ruwais halted operations after the drone strike, Bloomberg reported, citing people familiar with the matter.

US President Donald Trump said he was unhappy with Iran's choice of a new supreme leader and said the country's new leader "cannot live in peace."

"I don't believe he can live in peace," Trump said in an interview with Fox News, referring to Mojtaba Khamenei, the son of the late Ali Khamenei who has been installed as Iran's new supreme leader.

Trump also praised the early results of the US-Israeli military campaign against Iran, saying the outcome had been "way beyond expectation."

Trump praises early results of strikes on Iran

Trump said the joint operation, launched on Feb. 28, had already destroyed thousands of targets.

He said US forces had knocked out roughly half of Iran's missiles in the opening strike, which he described as decisive.

"When we attacked them first, we knocked out 50% of their missiles and if we didn't, it would have been a much harder fight," Trump said.

Trump says talks with Iran still possible

Asked whether he would speak with Iranian leaders, Trump said talks were possible depending on the terms.

"I'm hearing they want to talk badly," he said. "It's possible, depends on what terms."

Trump also said he was surprised that Iran had targeted Persian Gulf countries in retaliation for the US and Israeli strikes.

Ali Larijani told US President Donald Trump to "be careful not to be eliminated" after Trump warned Iran it would face severe retaliation if it disrupted oil flows through the Strait of Hormuz.

Larijani, the secretary of Iran's Supreme National Security Council, said the Iranian nation was not afraid of what he called Trump's threats.

"Greater powers than you could not eliminate the Iranian nation," he wrote on X, adding: "Be careful not to be eliminated."

Trump said on Monday the United States would hit Iran "twenty times harder" and unleash "death, fire and fury" if Tehran took steps to stop the flow of oil through the Strait of Hormuz.

Amir Ohana mocked his Iranian counterpart Mohammad Bagher Ghalibaf on Tuesday, saying the only proposal offered to Iran was "unconditional surrender."

Ohana wrote the comment on X in response to a post by Ghalibaf in which the Iranian parliament speaker said Tehran was not seeking a ceasefire and that the aggressor must be struck.

"Only one thing was offered to you: unconditional surrender," Ohana wrote.

A Guards spokesman, responding to Trump, said Washington was lying about conditions in the region and warned that Iran would not allow “one liter of oil” to be exported by hostile states and their partners.

The threat came after Trump warned Tehran against disrupting tanker traffic through the Strait of Hormuz, the world’s most critical oil shipping chokepoint, and said the conflict was moving ahead of schedule.

Trump said the United States would strike Iran “much harder” if it tried to stop oil shipments through Hormuz. He also predicted the war could end before the four-week timeline he had previously outlined.

His remarks helped calm markets after a wild trading session in which Brent surged to as high as $118-$119 a barrel – the highest level since 2022 – before retreating sharply as investors bet Washington may try to contain the economic fallout.

The sharp swings show how the war has thrust the Strait of Hormuz to the center of global energy markets.

Global economic ripple effects

The narrow waterway off Iran’s coast normally carries about a fifth of the world’s oil and liquefied natural gas supplies, but tanker traffic has been severely disrupted for more than a week, forcing Persian Gulf producers to cut output and raising fears of a major supply shock.

Saudi Arabia has reduced production by between 2 million and 2.5 million barrels per day, according to a Bloomberg report, while Iraq has cut output by about 2.9 million barrels per day. The United Arab Emirates has lowered production by up to 800,000 barrels per day and Kuwait by about 500,000 barrels per day.

Saudi Aramco warned on Tuesday that continued disruption to shipping through Hormuz could have “catastrophic consequences” for global oil markets.

The strait is also crucial for natural gas exports. Qatar alone ships roughly 20% of the world’s liquefied natural gas through the corridor, meaning any prolonged closure could affect energy markets far beyond oil.

Rising fuel costs are already feeding fears of renewed inflation worldwide, with analysts warning that sustained oil prices above $100 per barrel could push US gasoline prices toward $4 per gallon and raise costs for air travel, manufacturing and food.

The White House is weighing several options to contain the economic fallout, including releasing strategic oil reserves, easing sanctions on Russian crude and coordinating with allies to stabilize global supply.

The Group of Seven has said it stands ready to take steps to support energy markets, including possible stockpile releases if disruptions continue.