A FRAGILE ceasefire in the Gulf has been shaken by renewed military confrontation, as the United States and Iran exchanged missile and drone strikes while competing to assert control over the strategically vital Strait of Hormuz, a chokepoint for global energy supplies.
The latest escalation underscores the failure of recent de-escalation efforts, with Washington’s attempt to reopen shipping lanes drawing an immediate and forceful response from Tehran, raising fears of a wider regional conflict and further disruption to oil flows.
Fresh attacks unfolded on Monday as forces from the United States and Iran launched strikes across the Gulf, intensifying a standoff centred on the Strait of Hormuz, which has remained largely closed to commercial traffic since hostilities escalated in February.
Reuters reported on Tuesday that the exchange followed a new initiative by US President Donald Trump, dubbed “Project Freedom”, aimed at escorting stranded tankers and merchant vessels through the strait.
The announcement came despite ongoing legal disputes in Washington over the authorisation of the conflict, with Trump asserting the war had already been “terminated”, a claim contested by some lawmakers.
By the end of the day, multiple incidents had been reported across the Gulf, including explosions and fires aboard merchant vessels, while US forces said they had destroyed six small Iranian military boats.
At the same time, missile strikes set ablaze an oil facility in the United Arab Emirates, a key US security partner hosting American military asset.
The operation marked the first apparent use of force to reopen the waterway since a ceasefire was declared last month.
However, rather than restoring confidence, the move appeared to deter commercial shipping, with major companies indicating they would hold back until a clear and lasting settlement is reached.
Iran has insisted that any transit through the strait requires approval from its Islamic Revolutionary Guard Corps, while condemning the ongoing US naval blockade of its own trade as an act of war.
Iranian Foreign Minister Abbas Araqchi said the latest developments highlighted the limits of military escalation and pointed to ongoing diplomatic efforts mediated by Pakistan.
"Project Freedom is Project Deadlock," he wrote on social media.
Despite US claims that two merchant vessels had successfully transited the strait under naval escort, Tehran denied any such crossings had occurred in recent hours. Shipping giant Maersk said one US-flagged vessel had exited the Gulf with military escort.
US regional commander Admiral Brad Cooper said American forces had neutralised Iranian boats and warned Tehran against approaching US military assets, while Iranian authorities countered by releasing maps claiming an expanded zone of maritime control extending beyond the strait and along the UAE coastline.
Confusion persisted over several maritime incidents. South Korea reported an explosion aboard one of its vessels, while the UK maritime security agency cited two ships struck off the UAE coast. The Emirati energy group ADNOC confirmed one of its empty tankers had been hit by drones.
Iranian strikes also ignited a fire at Fujairah, a major oil export terminal located outside the strait and considered a critical alternative route for regional energy shipments. The UAE condemned the attacks as a serious escalation and said it reserved the right to respond, while introducing precautionary measures including remote schooling.
Tehran said the operations were retaliation for what it described as “U.S. military’s adventurism”, and earlier claimed to have fired warning shots at a US warship approaching the strait, forcing it to turn back. Washington denied that any of its vessels had been struck.
Oil markets reacted sharply, with prices rising more than five per cent amid heightened fears over supply disruptions, as hundreds of vessels remain stranded awaiting safe passage.
Iran’s military command has ordered all commercial shipping to coordinate movements with its forces, warning: "We warn that any foreign armed forces, especially the aggressive U.S. Army, will be attacked if they intend to approach and enter the Strait of Hormuz."
Although direct bombing between the US and Iran was suspended four weeks ago and an initial round of face-to-face talks took place, efforts to advance negotiations have stalled. Tehran has submitted a proposal via Pakistan to defer contentious issues, including its nuclear programme, until a broader settlement is reached, while Trump has signalled he is unlikely to accept the terms.
US intelligence assessments indicate only limited damage to Iran’s nuclear capabilities despite earlier strikes by the US and Israel, leaving a central point of contention unresolved as tensions continue to simmer. - May 5, 2026
