Iran has considered attacking U.S. military targets in Europe if the war escalates, the Financial Times reported Wednesday, citing two regime insiders.

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U.S. assets in Bulgaria and Cyprus were weighed as potential targets, according to the FT’s report.

CNBC has reached out to Iran’s Military of Foreign Affairs for comment and has not independently verified the story.

Negotiations between Washington and Tehran to end the war have stalled, with little sign that talks will resume, leaving the belligerents to consider their next stages in the prolonged conflict.

The United Arab Emirates on Wednesday said it had paused all “trade, commercial exchanges, and financial transactions” with Iran until further notice. On Tuesday, the UAE’s Ministry of Defense said it detected two ballistic missiles launched from Iran toward its territorial waters.

President Donald Trump on Tuesday said the U.S. is not currently in any talks with Tehran and has no plans to restart them. He has also ruled out extending the 60-day ceasefire agreement which expired Monday, after the deal effectively fell apart.

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A key point of contention remains control of the Strait of Hormuz. Trump has repeatedly stated that the vital shipping waterway is open and in operation under U.S. control.

However, observed ship traffic through the passage remains extremely low. An attack on a cargo vessel transiting the strait earlier this week killed one person.

Fox News on Tuesday quoted an Iranian military spokesperson as saying ships attempting passage through the strait will “find several beautiful holes in their hulls.”

Meanwhile, Trump has extended his verbal attacks to longstanding U.S. allies. On Monday, the president threatened to “bomb the s— out of” Oman if the Gulf nation “gets in the way” of its objectives in the Middle East.

He also ordered Defense Secretary Pete Hegseth to “substantially reduce” joint drills with South Korea, accusing Seoul of failing to help with its military operation in Iran and citing his friendly relations with North Korean leader Kim Jong Un.

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— CNBC’s Emma Graham and Spencer Kimball contributed to this story.