Iran warns a new war with the US could last longer as Gulf tensions rise

Iran warned on November 2 that any new war with the United States could last longer than the previous conflict. The warning followed a threat of fresh strikes from US President Donald Trump.

What happened

Iran said it remains open to diplomacy but is ready to defend itself. Tehran made the statement after Trump threatened new strikes and hinted that some US targets in Iran remain unresolved.

The United Arab Emirates said it hopes diplomacy will prevent renewed fighting between Washington and Tehran. It added that it is braced for the worst, even as it hopes for peace.

Separately, a Qatari liquefied natural gas tanker was hit by unidentified objects while passing through the Arabian Gulf. Qatar condemned the attack on the LNG carrier and warned of regional instability. The reports do not say who was responsible for the incident.

Why it matters

The Gulf is a key route for energy shipments, so an attack on an LNG carrier draws attention from energy importers and from companies that depend on regional trade. Statements from Iran, the UAE and Qatar show that governments in the region are preparing for a possible return to conflict while still talking about diplomacy. The reports also refer to a US-Israel-Iran war, which gives the current warnings their background.

Economic data from Asia adds to the backdrop. China's S&P Global Manufacturing PMI for October was 49.3 points, against a 51.6 estimate, and down from 52.1 previously. The figure was released early on November 2, before the US session opened.

The reading shows a sharp step down in one month for Chinese factory activity. It arrived while governments in the Gulf were discussing the risk of renewed conflict, so both themes sit in the same news cycle.

For investors, the main point is that geopolitical risk in the Gulf and softer Chinese factory data are arriving at the same time.

What to watch next

The next scheduled data point is the US ISM Manufacturing PMI for October, due at 15:00 UTC on November 2. The estimate is 54.6, and the previous reading was 54.5. The release will show how US factory activity compares with the Chinese figure published earlier the same day.

On the political side, the open questions are whether the US follows its threat of fresh strikes with action and whether diplomacy gains ground. Further details on the attack on the Qatari tanker may also emerge, including who was behind it. Iran has said it is open to diplomacy, and the UAE has said it hopes for peace, so statements from both sides will be closely followed.