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Yemen's Houthi rebels said on Saturday they fired missiles and drones on Saudi Arabia in response to Saudi airstrikes on the strategic Red Sea city of Hodeida.
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After threatening a "massive attack," the president said his envoys were talking with Tehran but left open the possibility of a sharp military escalation.
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The event, attended by prominent members of the Ukrainian defence industry, was hit by ballistic missiles in the middle of the day.
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The U.S. continued airstrikes in Iran while Tehran launched retaliatory attacks on U.S. targets in the Gulf, as President Trump said he was close to deciding whether to launch "a massive attack."
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The stalemate between the U.S. and Iran over control of the Strait of Hormuz has created a global economic shock. Now, the conflict is threatening to disrupt international shipping through the Red Sea.
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Four Palestinians and two Israeli soldiers were killed near a Palestinian village on Friday in a confrontation that added to a growing toll over recent weeks as Israeli settler violence has intensified against Palestinians in the occupied West Bank.
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President Trump threatened attacks on Houthi militants after the Iranian ally said it had hit two Saudi Arabian-flagged vessels.
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