President Donald Trump issued a stark warning to Iran on Monday, declaring the “clock is ticking” for Tehran to agree to a peace deal and threatening there “won’t be anything left of them” if no agreement is reached. The warning came as a drone strike triggered a fire at the Barakah Nuclear Energy Plant in the UAE, Saudi Arabia intercepted three drones from Iraq, and Israeli forces struck over 100 sites in southern Lebanon — all within a 24-hour span on May 18, 2026, Day 80 of the US-Israeli war on Iran.
Diplomatic channels between Washington and Tehran remain active but strained. Iran’s Mehr news agency reported that the latest US response to Tehran’s proposed negotiation agenda contained no meaningful concessions, according to Roya News. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Monday that Tehran had submitted its own response to a new American proposal and that communication through Pakistani mediation was ongoing.
“As we announced yesterday, our concerns were clearly communicated to the US side,” Baghaei told reporters at a press conference.
Despite that diplomatic activity, a US-brokered framework circulating in negotiations — reported by Tasnim news agency — would only temporarily waive sanctions on Iranian oil during the negotiation period through the Office of Foreign Assets Control. Iran has rejected that approach. The Iranian delegation is insisting on the permanent and binding lifting of all US sanctions as a precondition for any final deal, leaving a fundamental gap between the two sides.
Costs mount as the Strait remains blocked
The economic toll of the conflict is accelerating. A Reuters analysis of corporate disclosures from listed companies across the United States, Europe, and Asia found that at least 279 multinational firms have issued profit warnings, with combined losses to global corporations reaching at least $25 billion. Iran’s blockade of the Strait of Hormuz has pushed crude oil prices above $100 a barrel — a rise of more than 50 percent since hostilities began three months ago. Companies across sectors from cosmetics and tires to airlines and cruise lines have flagged direct hits to their balance sheets.
Whirlpool Chief Executive Officer Marc Bitzer told market analysts: “This level of industry decline is similar to what we have observed during the global financial crisis and even higher than during other recessionary periods.” The company cut its full-year financial forecast by half and suspended its dividend.
The blockade, which Trump announced on April 13 as leverage to force Iran into negotiations, has also choked supplies of helium, aluminum, fertilizers, and polyethylene. Iran signalled further pressure on that front: according to Iranian state television, around 1,500 vessels were waiting in the Strait of Hormuz on Monday for clearance from Islamic Revolutionary Guard Corps naval forces. Tehran has also announced it will soon unveil a formal framework to regulate maritime traffic and impose shipping tolls on passage through the waterway.
Senior Iranian official issues direct military warning
Mohsen Rezaei, a member of Tehran’s Expediency Council and former IRGC commander, issued a blunt warning to Washington on Iranian state television Monday, urging the United States to lift its naval blockade.
“We advise the US military to end the siege before the Sea of Oman becomes your graveyard,” Rezaei said. “The longer they prolong the naval blockade of Iran, the greater the damage to countries around the world will be.”
Rezaei described the blockade as an act of war but said diplomatic efforts continued, adding: “It is America that must prove itself now. Our armed forces have their finger on the trigger, and, at the same time, diplomacy continues.”
Separately, Rezaei issued a warning to the United Arab Emirates. The Iranian Students’ News Agency quoted him as saying Tehran had “not closed the door to friendship” with Abu Dhabi but that Iran’s “patience has limits.” He added: “The UAE should not become entangled in Israel’s plots and schemes.”
UAE nuclear plant hit; India calls for restraint
A drone strike on Monday struck an electrical generator at the Barakah Nuclear Energy Plant in the al-Dhafra region of the UAE, triggering a fire at the facility, Roya News reported. No casualties or radiation-related incidents were immediately reported. India’s foreign ministry said it was “deeply concerned” and called the strikes “unacceptable,” adding: “Such actions represent a dangerous escalation. We urgently call for restraint and a return to dialogue and diplomacy.”
Saudi Arabia intercepts drones from Iraq
Saudi Arabia’s Ministry of Defense confirmed Sunday that it intercepted and destroyed three unmanned aerial vehicles that crossed into the Kingdom’s airspace from Iraqi territory. Official spokesperson Major General Turki al-Maliki said the drones were detected and neutralized, and stated the Ministry “retains the right to respond at the appropriate time and place.” He added that all necessary operational measures would be taken to defend the Kingdom’s sovereignty and its citizens.
Jordan’s Ministry of Foreign Affairs and Expatriate Affairs condemned the incident Monday, describing it as “a flagrant violation of Saudi sovereignty, a direct threat to regional stability, and a blatant breach of international law and the United Nations Charter.” The statement affirmed Amman’s “absolute solidarity” with Riyadh.
Saudi Arabia had previously summoned Iraq’s ambassador on April 12 to formally protest drone attacks launched from Iraqi territory.
Lebanon ceasefire frays
In Lebanon, the Israeli military ordered the immediate evacuation of three southern towns — Harouf, Burj al-Shamali, and Dibal — on Monday, instructing residents to move at least 1,000 metres from municipal borders. Arabic-language military spokesperson Avichay Adraee said the army was “compelled to act forcefully,” citing what he described as persistent ceasefire violations by Hezbollah. Israeli forces said they struck more than 100 sites in southern Lebanon over the two preceding days and over 30 Hezbollah infrastructure sites in the past 24 hours alone, including weapons depots and observation posts. Negotiators had agreed to a 45-day extension of the ceasefire prior to the strikes.
Separately, an Israeli airstrike on the outskirts of Baalbek in eastern Lebanon on Monday killed a Palestinian Islamic Jihad commander and his daughter, according to Lebanon’s state news agency. The strike targeted a residential apartment housing a Palestinian family.
Explosions were also reported in Israel’s Upper Galilee region Monday, according to Israel’s Channel 12. The Israeli military said it intercepted a rocket fired from Lebanon, while another missile landed in an open area in northern Israel.
Background
The US-Israeli military campaign against Iran entered its 80th day on May 18, 2026, having begun with strikes that triggered a wider regional conflict. The United States imposed a naval blockade on Iranian ports on April 13, which Trump said would remain in place until Iran agrees to terms set by Washington. Iran, which has consistently demanded the full lifting of all US sanctions, has been engaged in indirect talks with the United States mediated by Pakistan. Turkey has also been working behind the scenes to facilitate a diplomatic resolution while simultaneously reinforcing its border with Iran against the possibility of a refugee influx.
What happens next
Iranian Foreign Ministry spokesperson Baghaei confirmed that correspondence between Tehran and Washington through Pakistan’s embassy remains active, with further meetings expected. The Tasnim-reported US framework — including the temporary OFAC sanctions waiver — remains under review by the Iranian side, which has yet to formally accept or reject its terms. Saudi Arabia has reserved the right to respond militarily to Sunday’s drone incursion from Iraq, with the timing and form of any response unspecified. Iran has said it will formally present its Strait of Hormuz toll and traffic regulation framework in the near term. The Israeli military’s evacuation orders in southern Lebanon signal further strikes are imminent in those areas.
