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Zehra Munir, Alexandra White and Peter Wells in New York

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Main developments

Iran has warned it will attack US Navy ships if they enter the Strait of Hormuz, after President Donald Trump announced a plan to “guide” stranded vessels through the waterway at the centre of a global energy crisis.

In an escalation of tensions, Iran said on Monday that attempts to navigate the strait without co-ordination with the Islamic republic could jeopardise their security.

“We warn foreign armed forces, particularly the US aggressor army, that if they attempt to approach or enter the Strait of Hormuz, they will be attacked,” said Major General Ali Abdollahi, commander of Khatam al-Anbia Central Headquarters.

The threat followed Trump’s announcement on Truth Social that, from Monday, the US would begin an effort to guide ships from various countries through the contested waterway in an operation called “Project Freedom”.

Brent crude, the international oil benchmark rose as much as 6 per cent to a session high of $114.45 just before midday on Monday on Wall Street

Also spurring the move in markets was news that the UAE had detected four missiles coming from Iran.

The UAE said in a statement it had successfully intercepted three missiles and a fourth fell into the sea.

Kate Duguid in New York

Oil hits session high

Oil prices rose and Treasury debt sold off as traders reacted to the news that the UAE had detected four missiles coming from Iran, the first attack on the country since the ceasefire.

Brent crude, the international oil benchmark rose as much as 6 per cent to a session high of $114.45 just before midday on Monday on Wall Street.

The 30-year Treasury yield, which is particularly sensitive to inflation expectations, rose to 5.03 per cent, its highest level since last summer. Yields move inversely to price.

US stocks fell with the S&P 500 and Nasdaq Composite both down 0.4 per cent.

Raya Jalabi in Beirut

UAE air defences intercept missiles and drones

The UAE’s air defences intercepted several missiles and drones launched from Iran on Monday evening, the country’s defence ministry said in a statement.

“The sounds heard in various parts of the country are the result of the UAE air defense systems intercepting ballistic missiles, cruise missiles, and drones,” the statement said.

Four cruise missiles launched from Iran towards the Emirates were detected: three missiles were successfully intercepted and a fourth fell into the sea, the ministry said.

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Najmeh Bozorgmehr in Tehran, Amy Mackinnon in Washington and Alice Hancock in London

Iran warns US Navy against entering Strait of Hormuz

The Middle East ceasefire has come under renewed strain after Iran warned it would attack US Navy ships if they entered the Strait of Hormuz and the UAE intercepted several missiles and drones.

In an escalation of tensions, Iran said on Monday that attempts to navigate the strait without co-ordination with the Islamic republic would jeopardise the ships’ security.

“We warn foreign armed forces, particularly the US aggressor army, that if they attempt to approach or enter the Strait of Hormuz, they will be attacked,” said Major General Ali Abdollahi, commander of Khatam al-Anbia Central Headquarters.

The threat followed Trump’s announcement on Truth Social that, from Monday, the US would begin an effort to guide ships from various countries through the contested waterway in an operation called “Project Freedom”.

On Monday evening, the UAE said its air defences had intercepted several missiles and drones launched from Iran.

“The sounds heard in various parts of the country are the result of the UAE air defense systems intercepting ballistic missiles, cruise missiles, and drones,” the country’s defence ministry said.

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