Fresh military exchanges between the United States (US) and Iran have intensified tensions in the Gulf as both sides compete for influence over the Strait of Hormuz, a critical global oil shipping route.
Read More: Iran Releases New Map Claiming Control of Strait of Hormuz
On Monday, the US and Iran exchanged missile, drone, and naval attacks amid ongoing disputes over maritime access through the strait, which has remained heavily disrupted since conflict escalated earlier this year. US President Donald Trump announced a new initiative, called “Project Freedom,” aimed at helping stranded commercial vessels pass through the strategic waterway under US military protection.
The US and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with dueling maritime blockades, shaking a fragile truce. https://t.co/ZPcqaL2SXm
— BusinessWorld (@bworldph) May 5, 2026
Trump claimed US forces shot down seven Iranian boats, while military officials separately said six Iranian military vessels were destroyed during operations in the Gulf. Iran denied these claims and maintained that navigation through the Strait of Hormuz requires its approval.
The latest clashes also affected regional infrastructure. Iranian missiles reportedly triggered a fire at Fujairah, a major oil port in the United Arab Emirates, prompting Emirati authorities to condemn the attacks as a serious escalation. ADNOC also confirmed one of its empty oil tankers was struck by drones.
Several merchant ships reported explosions and onboard fires during the day, adding to uncertainty for global shipping companies. South Korean vessel HMM Namu experienced an engine room fire in the strait, though no casualties were reported.
Despite the escalation, diplomatic efforts remain underway. Iranian Foreign Minister Abbas Araqchi said there is no military solution to the crisis and noted that peace discussions are continuing through Pakistan’s mediation. However, no breakthrough has been announced.
Shipping companies remain cautious, with many unwilling to resume normal transit until a formal agreement reduces hostilities in the region. Insurance costs for vessels operating near the strait have surged sharply.
Read More: Iran hits UAE oil port as US moves to reopen Hormuz
The Strait of Hormuz handles a significant portion of the world’s oil trade, making disruptions a major concern for international markets. Oil prices rose more than 5% following reports of the latest attacks, reflecting growing fears over energy supply instability and wider regional conflict.