US President Donald Trump threatened to seize Kharg Island, while the UAE strengthens relations with Iran in a development officials say could reshape regional dynamics

Trump has repeatedly said that a peace agreement with Tehran is imminent, but diplomacy has stalled and the two sides have traded fire despite a ceasefire in place since April 8.

President Donald Trump’s warning came hours after Bahrain, Kuwait and Jordan — all of which host U.S. troops — came under Iranian fire.

President Donald Trump considered capturing Kharg Island, Iran's main oil export terminal. This move would have severely impacted Iran's economy. However, Trump later withdrew the…