Renewed exchanges of fire in the Persian Gulf have shaken a month-old ceasefire, leaving diplomats racing to salvage fragile talks before hostilities escalate further.
Washington/Cairo, May 8 – U.S. and Iranian forces clashed in the Persian Gulf, and attacks on the UAE resumed, threatening the month-long ceasefire and casting a shadow over any diplomatic resolution to the crisis.
Tensions rose as Washington awaited Tehran’s response to a proposal to end the conflict, which began with joint air strikes by the United States and Israel against Iran on February 28.
President Donald Trump said on Thursday that three American destroyers passed through the Strait of Hormuz under fire – a route that accounts for about one-fifth of the world’s oil and liquefied natural gas supplies, which Iran has almost shut off since the start of the conflict.
“Three world-class American destroyers passed through the Strait of Hormuz under fire. No damage was done to the three destroyers, but significant damage was inflicted on the attackers from Iran,”
– Donald Trump, wrote on Truth Social
Trump later told reporters that the ceasefire was still in effect, and he tried to downplay the significance of the exchange.
The Iranian Joint Chiefs of Staff accused the United States of violating the ceasefire, striking an Iranian oil tanker and another vessel, as well as in air attacks on civilian areas on Qeshm Island in the Strait of Hormuz and nearby coastal areas. It said it responded by attacking American military vessels east of the strait and south of the port of Chabahar.
A representative of the Khatam al-Anbiya Central Headquarters said that the Iranian strikes had caused “significant damage,” but U.S. Central Command denied any damage to its forces.
Later, Press TV reported that after several hours of fire the situation on the Iranian islands and coastal towns near the Strait of Hormuz had returned to normal.
Since the ceasefire took effect on April 7, both sides have periodically fired, and Iranian strikes have targeted locations in the Gulf states, including the UAE.
Details about the latest attack on the UAE are being clarified. Since the start of the war, Iran has repeatedly escalated conflicts with the UAE and other Gulf countries where U.S. military bases are located.
Oil prices jumped during Asia’s morning trading on Friday: Brent rose above $100 per barrel after the latest clashes, while stock prices retreated after a week of substantial gains tied to hopes for a quick resolution of the conflict.
Trump calls for a negotiated end to the war
Trump hinted that negotiations with Iran are ongoing despite today’s tensions, telling journalists: “We are negotiating with Iran.”
The United States had put forward a proposal that could formally end the conflict, but it did not cover the United States’ key demands for Iran to halt its nuclear activity and the opening of the Strait of Hormuz.
Iran said it had not yet decided on the emerging plan. Meanwhile, Trump noted that Tehran acknowledged his demand that Iran would not be able to possess a nuclear weapon, and invited them to see whether they would sign the document.
“No chance. And they know it, and have agreed to it. We’ll see whether they are willing to sign it,” Trump said.
The war is testing Trump’s support among his base: he has previously spoken out against U.S. involvement in others’ wars and pledged to reduce fuel costs.
Average gasoline prices in the U.S. have risen more than 40% since the end of February, about $1.20 per gallon, due to supply disruptions through the Strait of Hormuz and rising global oil prices.
“Despite the long-standing hostility and still-high oil prices, markets are pricing this conflict as temporary in duration.”
– Marija Veitmane, Head of Equity Markets Research at State Street Markets
Across the board, global markets remain sensitive to any signals of a possible diplomatic path, but progress in negotiations will depend on both sides’ real commitment to stop fighting and open a path to dialogue.
Overall, analysts note that the fate of further steps depends on the willingness of the parties to compromise and on maintaining the ceasefire, which remains a key factor in reducing escalation and spurring negotiations.