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U.S.-Iran Conflict: Gulf Allies Rebuff Tehran as Israel Escalates Proxy Strikes

President Trump warns Tehran to 'get smart' as Gulf allies reject Iranian toll proposals and energy prices hit record highs.

April 29, 2026 at 11:00 PM

Tensions between the United States and Iran intensified Wednesday as President Trump issued a fresh warning via social media, urging Tehran to "get smart soon." The administration remains committed to a naval blockade intended to force nuclear concessions, a strategy that has crippled Iran's oil exports but also driven U.S. gas prices to a record $4.18 per gallon. On the diplomatic front, Gulf allies including the UAE have unified with Washington to reject an Iranian proposal to impose tolls on the Strait of Hormuz, maintaining pressure on Tehran's primary maritime artery. On the ground, the conflict continues to manifest through regional proxies. Israel has ramped up its military operations against Hezbollah in southern Lebanon, utilizing drone strikes to target personnel and ordering evacuations in 16 villages to dismantle drone and tunnel infrastructure. Israeli officials have set a mid-May deadline for a political agreement before current ceasefire arrangements expire. Meanwhile, Defense Secretary Hegseth testified before the House Armed Services Committee, defending the $25 billion military expenditure and the administration's adherence to the War Powers Act. Diplomatic efforts appear to have reached a stalemate. Back-channel negotiations facilitated by Pakistan have been characterized by missed meetings and "stutter steps," with President Trump rejecting Iran's latest offer to reopen the Strait of Hormuz in exchange for an end to the blockade. As Iran’s state-run media threatens "unprecedented military action" in response to the financial strain, U.S. intelligence has stepped up its analysis of potential Iranian retaliatory measures.

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