WASHINGTON/CAIRO – Efforts to end the war between the US and Iran appeared to stall as the two sides traded fire in the Gulf on May 8, while a US intelligence analysis concluded that Tehran could withstand a naval blockade for months.
A CIA assessment indicated that Iran would not suffer severe economic pressure from a US blockade of Iranian ports for about another four months, according to a US official familiar with the matter, suggesting that US leverage over Tehran remains limited as the two sides seek to end a conflict that has been unpopular with US voters.
The Washington Post first reported the assessment.
A senior intelligence official called the “claims” about the CIA analysis “false”, saying the blockade “is inflicting real, compounding damage – severing trade, crushing revenue, and accelerating systemic economic collapse”.
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 May 8.
Washington is awaiting Tehran’s response to a US proposal that would formally end the war before talks on more contentious issues, including Iran’s nuclear program.
“We should know something today,” US 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.
Meanwhile, more sporadic clashes between Iranian forces and US 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 warning more clashes were possible.
The US military said it struck two Iran-linked vessels attempting to enter an Iranian port, with a US 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 US-Israeli airstrikes across Iran on Feb 28. The US imposed a blockade on Iranian vessels last month.
Oil prices rose, with Brent crude futures above US$101 a barrel, though still down more than 6 per cent for the week.
Mr Trump said on May 7 that 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 May 8, with three people sustaining moderate injuries.
During the war, Iran has repeatedly targeted the UAE and other Gulf states that host US 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 accused the US 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 US opts for a reckless military adventure,” Foreign Minister Abbas Araqchi said on May 8.
Iran’s Mehr news agency reported that one crew member was killed, 10 wounded and four missing after a US Navy attack on an Iranian commercial ship late on May 7.
Mr Rubio, after meeting with Italian Prime Minister Giorgia Meloni, questioned why Italy and other allies were not backing Washington’s efforts to re-open 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.
While pursuing diplomacy, the US also ratcheted up sanctions to pressure Iran.
The US Treasury on May 8 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. REUTERS
