Efforts to end the war between the U.S. and Iran appeared to stall as the two sides traded fire in ‌the Gulf on Friday (May 8, 2026), while a U.S. intelligence analysis concluded Tehran could withstand a naval blockade for months.

A ​CIA assessment indicated that Iran would not suffer severe economic pressure from a U.S. blockade of Iranian ⁠ports for about another four months, according to a U.S. official familiar with the matter, suggesting that U.S. leverage over Tehran remains limited as the two sides seek to end a conflict that has been unpopular with U.S. voters.

Iran-Israel war LIVE- May 9, 2026

The Washington Post first reported the assessment. Recent days have seen the biggest ‌flare-ups in fighting in and around the Strait of Hormuz since a ceasefire began a month ago, and the United Arab Emirates came under renewed attack on Friday (May 8, 2026).

Washington is awaiting Tehran’s response to a U.S. proposal that would formally ‌end the war before talks on more contentious issues, including Iran’s nuclear program. “We should know something today,” U.S. Secretary of ‌State Marco ⁠Rubio told reporters in Rome earlier in the day. “We’re expecting a response from them.” Iran’s Foreign Ministry spokesperson ⁠said Tehran was still weighing its response, and none was reported by mid-afternoon in Washington, just before midnight in Tehran.

Sporadic clashes in Strait

Meanwhile, more sporadic clashes between Iranian forces and U.S. vessels took place in the Strait of Hormuz, Iran’s semi-official Fars news agency reported. The Tasnim news agency later cited an Iranian military source ​saying the situation had calmed, but warned more clashes were ‌possible. The U.S. military said it struck two Iran-linked vessels attempting to enter an Iranian port, with a U.S. fighter jet hitting their smokestacks and forcing them to turn back. Iran has largely blocked non-Iranian shipping through the strait since the war began with joint U.S.-Israeli airstrikes across Iran on February 28. The U.S. imposed a blockade on Iranian vessels last month.

Oil prices rose, with ‌Brent crude futures above $101 a barrel, though still down more than 6% for the week. Mr. Trump said on Thursday (May 7, 2026) the ​ceasefire was still holding despite the flare-ups in the strait, which, before the war, handled one-fifth of the world’s oil supply. The confrontation extended beyond the waterway. The United Arab Emirates said its air defences engaged with ⁠two ballistic missiles and three drones from Iran on Friday (May 8, 2026), with three people sustaining moderate injuries.

During the war, Iran has repeatedly targeted the UAE and other Gulf states that host U.S. military bases. In what the UAE called a “major escalation”, Iran stepped up attacks this week in ‌response to Mr. Trump’s announcement of “Project Freedom” to escort ships in the strait, which he paused after 48 hours.

Iran accuses U.S. of breaching truce

Iran accused the U.S. of breaching the ceasefire, which had largely held since it was announced on April 7 but has come under strain this week. “Every time a diplomatic solution is on the table, the U.S. opts for a reckless military adventure,” Foreign Minister Abbas Araghchi said on Friday (May 8, 2026). Iran’s Mehr news agency reported that one crew member was killed, 10 wounded and four missing after a U.S. Navy attack on an Iranian commercial ship late on Thursday (May 7, 2026).

Mr. Rubio, after meeting with Italian Prime Minister Giorgia Meloni, questioned why Italy ‌and other allies were not backing Washington’s efforts to reopen the strait. “Are you going to normalise a country claiming to control an international waterway? Because if ​you normalise that, you’ve set a precedent that’s going to get repeated in a dozen other places,” he said.

U.S. imposes sanctions

While pursuing diplomacy, the U.S. also ratcheted up sanctions to pressure Iran. The U.S. Treasury on Friday (May 8, 2026) announced ⁠sanctions against 10 individuals and companies, including several in China and Hong Kong, for aiding efforts by Iran’s military to secure weapons and raw ⁠materials used to build Tehran’s Shahed drones.

Treasury said in a statement it remains ready to take economic action against Iran’s military industrial base so Tehran cannot reconstitute its production capacity and project power outside its borders. It also said it was ‌prepared to act against any foreign company supporting illicit Iranian commerce, including airlines, and could impose secondary sanctions on foreign financial institutions that aid Iran’s efforts, including those connected to China’s independent “teapot” oil refineries.

The announcement came days before Mr. Trump plans to travel ​to China for a meeting with President Xi Jinping.

An Indian sailor was killed and several others injured after their wooden dhow caught fire near the Strait of Hormuz, government sources said on Saturday (May 10, 2026). 17 other Indian crew members were rescued following the incident on Friday (May 8, 2026), they said, noting that the exact cause of the blaze is still being ascertained.

The crew members were rescued by a vessel which was passing by in the area, the sources said.

Iran-Israel war LIVE

The incident came amid increasing hostilities between Iran and the U.S. in the Strait of Hormuz, a vital maritime chokepoint between the Persian Gulf and the Gulf of Oman through which a significant portion of the world’s oil supply passes.

“A wooden dhow, carrying general cargo, with 18 Indian crew capsized yesterday close to the Strait of Hormuz after it caught fire,” said a source.

“In this incident, one Indian on the dhow died while four received burn injuries. The injured are receiving medical treatment in Dubai and are safe,” the source said.

Officials from the Indian Consulate in Dubai met the rescued Indian nationals last night, said another source.

The consulate is also in touch with the dhow owner and is extending all possible assistance, the sources said.

Iran ​will only accept “a fair and comprehensive agreement” in its negotiations with the U.S. on ending the war in the ‌West Asia, its Foreign Minister said on Wednesday (May 6, 2026), as U.S. President Donald Trump cited “great progress” ​in the process.

“We will do our best to protect our legitimate rights and interests ⁠in the negotiations,” Foreign Minister Abbas Araghchi said in Beijing after a meeting with China’s top diplomat Wang Yi, Iranian media reported. “We only accept a fair and comprehensive agreement.”

The United States will launch an effort on Monday (May 4, 2026) to “guide” stranded ships from the Iran-gripped Strait of Hormuz, President Donald Trump said, giving few details about what could be a sweeping effort to help hundreds of vessels and some 20,000 seafarers.

Mr. Trump said in a social media post on Sunday (May 3, 2026) that “neutral and innocent” countries have been affected by the Iran war, and “we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business.”

U.S. President Donald Trump said on Saturday (May 2, 2026) he had been told about the concept of a deal with Iran, but was waiting ‌for the exact wording, while warning there was still the possibility of restarting strikes on the country if ​Tehran misbehaves. A senior Iranian official said on Saturday (May 2, 2026) that an Iranian proposal so far rejected by Mr. Trump ⁠would open shipping in the Strait of Hormuz and end the U.S. blockade of Iran while leaving talks on Iran’s nuclear program for later.

When asked about Iran’s proposal before boarding a flight to Miami at West Palm Beach, Florida, Mr. Trump replied: “They told me about the concept of the ‌deal. They’re going to give me the exact wording now.”

King Charles III gave U.S. President Donald Trump a taste of his own medicine at a White House state dinner on Tuesday (April 28, 2026) when he joked that without the British, Americans would be speaking French.

As the heads of state traded jokes during their dinner toasts, King Charles referenced previous comments by Mr. Trump aimed at European allies he accuses of freeloading on defense since World War II.

“You recently commented, Mr. President, that if it were not for the United States, European countries would be speaking German. Dare I say that, if it wasn’t for us, you’d be speaking French,” king Charles quipped.

The U.S. has allowed its waiver of sanctions on Iran’s Chabahar port to lapse on Sunday (April 26), indicating that India is now at a crossroads on how to proceed with the port as a key connectivity initiative. Barring a belated waiver renewal, New Delhi must choose between accepting sanctions and abandoning its $620 million investment, or proceeding with the project and risk strict U.S. sanctions. India’s “start-stop” engagement with Iran on developing a facility at the Shahid Beheshti terminal at Chabahar goes back decades, and Prime Minister A.B. Vajpayee signed an MoU for the project in 2003. However, U.S. pressure on India to postpone plans aimed at stopping Iran’s nuclear programme led to construction delays. The Manmohan Singh government was unable to make much progress either, but continued work on the Zaranj-Delaram highway to connect the Iran-Afghanistan border crossing to Kabul. After the 2015 JCPOA, Prime Minister Narendra Modi’s government signed a trilateral agreement with Iran and Afghanistan to advance trade and aid via Chabahar port and a highway into Afghanistan. Chabahar’s importance grew as ties with Pakistan deteriorated and it restricted India’s transit access to Afghanistan. However, fate intervened again as U.S. President Donald Trump walked out of the JCPOA, and began a “maximum pressure” campaign against Iran by re-implementing all sanctions. While India was forced by the U.S. to give up Iranian oil imports, and plans for the rail line, the U.S. built a “carve-out” for Chabahar, allowing India to send wheat and medical supplies to Afghanistan. That carve-out is now at an end, with the Trump administration giving Delhi until this month to “wind-down” its operations. Since November 2025, India has withdrawn personnel from Chabahar, prepaid its $120 million investment commitment, and is considering transferring its stake in the Shahid Beheshti Terminal to an Iranian company, with the option of returning later.

The West Asia war has complicated the situation, and it is unclear when, if ever, India will be able to re-engage with Iran or rebuild Chabahar after the conflict. Temporarily dropping the project may seem pragmatic. However, Chabahar is just one of several India’s independent decisions that the U.S. has thwarted; there have been diktats to stop buying oil from Iran, Venezuela, and Russia. Mr. Trump has threatened sanctions on all trade with Iran, and on BRICS grouping members; the U.S.’s seemingly insatiable demands may also extend to India’s engagement with other countries. Giving in on Chabahar will not just end India’s connectivity plans with Iran, Central Asia and Afghanistan. It will damage its claims of sovereign autonomy, and slice away its ability to pursue an independent foreign policy.

Amidst pressure on supplies of urea and fertilisers due to the escalating tensions in West Asia, a possible mitigation of these shortages through coal gasification still seems distant, according to sector experts. According to them, very few coal gasification projects have so far scaled to an advanced stage.

The Ministry of Coal, however, has told The Hindu that the government is confident that the target of 100 million tonnes of gasification by 2030 will be met as per schedule.

U.S. President Donald Trump granted ‌a 90-day extension to a shipping ​waiver that makes it ⁠easier to move oil, fuel and fertilizer around the United States, the White House ‌said on Friday (April 24, 2026), the latest effort to curb rising energy ‌costs linked to the ‌war ⁠with Iran. The decision adds ⁠roughly three months to the existing waiver that was set to expire on May ​17, enabling foreign-flagged vessels ‌to move commodities between U.S. ports through mid-August.

White House spokeswoman Taylor Rogers confirmed on Friday (April 24, 2026) that Mr. Trump ‌had issued the extension. “This waiver ​extension provides both certainty and stability for the U.S. and ⁠global economies,” Ms. Rogers said. The Jones Act has long been a flashpoint ‌between competing economic and national security priorities. Supporters, including U.S. shipbuilders, maritime unions and some lawmakers, argue the law is critical to maintaining a domestic shipping industry and merchant ‌marine that can support military logistics ​and national security.