"Ceasefire agreement" over? Trump "deliberately downplays," UAE condemns, Iranian military warns, foreign minister criticizes "Freedom Plan"
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The situation between the US and Iran is escalating rapidly, gripping the nerves of global markets.
According to Xinhua News Agency and CCTV News, on May 3 local time, US President Trump announced the launch of an operation called "Freedom Plan" to "guide" stranded vessels out of the Strait of Hormuz. On the 4th, the US military stated that two commercial ships flying the US flag had successfully passed through the Strait of Hormuz. On the same day, Iran fired multiple cruise missiles, drones, etc., at US Navy ships and commercial vessels "protected" by the US military. The US military sank six small Iranian ships that tried to obstruct the commercial ships' passage.
Meanwhile, according to Xinhua News Agency, the Fujairah Media Office issued a statement on the 4th, stating that Fujairah's oil industrial zone was hit by a drone from the direction of Iran, causing a fire. According to CCTV News, the UAE's Ministry of Foreign Affairs immediately issued a statement strongly condemning Iran for attacking its civilian facilities, calling the related action a "dangerous escalation," and warning it would hold Iran accountable. Subsequently, according to Xinhua quoting Islamic Republic of Iran Broadcasting, an unnamed Iranian military source denied any connection between the Fujairah oil industrial zone fire and Iran.
In an interview with ABC, Trump deliberately downplayed the situation, saying that the ceasefire agreement had not been clearly violated. However, in an earlier interview with Fox News that day, he used strong language, warning that if Iran fired on US ships, it would be "wiped off the face of the earth". Iran's Foreign Minister Araghchi responded on social media, saying the "Freedom Plan" was actually a "Deadlock Plan," and warned the US to beware of being dragged into a quagmire by those with ulterior motives, and cautioned the UAE as well.
Trump’s Attitude Wavers—Toughness and De-escalation in Parallel
In the face of a series of military actions by Iran, Trump's public statements display a clear two-pronged approach.
According to Xinhua, on the 4th, US President Trump—during an interview with ABC—seemed to deliberately downplay the consequences of Iran’s attack on commercial ships and the UAE, not clearly stating that these actions violated the US-Iran ceasefire agreement. In his interview with ABC, he said, "That was not a fierce firefight... There was no exchange of fire at the time," and stated that the latest incident was under investigation. Regarding Iran’s missiles and drone attacks on the UAE, he emphasized that the vast majority were shot down, "only one slipped through, and the resulting damage was not significant."
However, in an earlier interview with Fox News on the same day, Trump's wording was entirely different. He issued a clear threat, saying that if Iran opened fire on US ships in the Persian Gulf or the Strait of Hormuz, it would be "wiped off the face of the earth." He also warned Iran that they "better pray" the ceasefire agreement could remain in effect, adding, "for them, the best outcome is that we continue this agreement."
Trump's remarks reflect the current policy orientation—maintaining military deterrence while avoiding defining the situation as a complete breakdown, thereby leaving room for diplomatic mediation.
UAE Attacked, Gulf Allies Under Pressure
The attack on Fujairah’s oil industrial zone has drawn the UAE directly into the conflict.
According to Xinhua News, as confirmed by the UAE Fujairah Media Office, a drone from the direction of Iran attacked the industrial zone that day and triggered a fire, injuring three Indian nationals. The UAE Ministry of Defense subsequently disclosed that its air defense systems had successfully intercepted 12 ballistic missiles, 3 cruise missiles, and 4 drones from the direction of Iran that day.
The UAE Ministry of Foreign Affairs issued a statement strongly condemning Iran for "once again" attacking the country’s civilian facilities with missiles and drones, saying the attacks "seriously threaten the country's security, stability, and territorial integrity, and blatantly violate international law and the UN Charter." The statement stressed the UAE would not tolerate any undermining of its security and sovereignty, would exercise all rights under international law, and would hold Iran responsible.
The Port of Fujairah is a crucial global marine fuel supply hub. News of the attack on its oil industrial zone has a direct impact on the regional energy supply chain.
Iran Denies Orchestrating Attack and Warns UAE Not to Act Rashly
Iran has denied the above accusations and issued a clear warning to the UAE.
According to Xinhua citing Islamic Republic of Iran Broadcasting, an unnamed Iranian military source denied any connection between Iran and the Fujairah oil industrial zone fire, saying Iran "did not premeditate any attack on Fujairah's oil industrial zone," and attributed related incidents to the US's "military adventurism," adding that the US should be responsible. The source further accused the US of attempting to create passage for ships "illegally passing through the restricted waters of the Strait of Hormuz."
According to Tasnim News Agency, the source also issued a stern warning to the UAE, saying that if the UAE "becomes a tool of Israel and takes improper actions," Iran would respond harshly, and "all of the UAE’s interests could become targets, and facilities in the UAE would no longer be safe." The source added that if the UAE made a "wrong choice," Iran would no longer show restraint and would treat it as "part of Israel" in its response.
Iranian Foreign Minister: "Freedom Plan" is a "Deadlock Plan"
As the military standoff continues, Iranian Foreign Minister Araghchi sent a different signal on social media on the 5th. The series of events in the Strait of Hormuz clearly shows political crises cannot be solved militarily. He branded the "Freedom Plan" announced by Trump as the "Deadlock Plan," implying that the US’s military rescue action would only further complicate the situation rather than bring a solution.
This statement indicates that Tehran still sees diplomatic channels as an option, but at the same time is keeping military pressure on the table. For the markets, the coexistence of negotiation and military escalation means that the risks to shipping through the Strait of Hormuz will not subside soon, and energy price uncertainty will persist.
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