US expects Iranian response to peace proposal on Friday, fighting flares in Gulf
By Idrees Ali and Hatem Maher
US-Iran Tensions and Peace Proposal Developments
WASHINGTON/CAIRO, May 8 (Reuters) - The United States said on Friday it expected an Iranian response as soon as later in the day to its latest proposal to end the war in the Gulf, even as U.S. and Iranian forces clashed in the Gulf and the United Arab Emirates came under renewed attack.
Recent days have seen the biggest flare-ups in fighting in and around the contested Strait of Hormuz since a ceasefire began a month ago, even as the United States and Iran have indicated they are closer than ever to a deal to end the war.
Awaiting Iran's Response
"We should know something today," U.S. Secretary of State Marco Rubio told reporters in Rome on Friday. "We're expecting a response from them. We'll see what the response entails. The hope is it's something that can put us into a serious process of negotiation."
President Donald Trump said a ceasefire was still holding despite the flare-up. Washington is awaiting Tehran's response to a U.S. proposal, which would formally end the war first, before talks to resolve the most contentious issues such as the fate of Iran's nuclear programme.
Clashes in the Strait of Hormuz
Mehr news agency reported that explosions were heard in Iran's Sirik near the Strait of Hormuz on Friday. It said 10 crew members were injured and five missing from an Iranian commercial ship attacked late on Thursday by the U.S. Navy in waters near the strait, the vital conduit for global energy supplies that Tehran has all but closed since the war began.
Trump said three U.S. Navy destroyers had been attacked as they moved through the strait, and the U.S. military had fired back.
"Three World Class American Destroyers just transited, very successfully, out of the Strait of Hormuz, under fire. There was no damage done to the three Destroyers, but great damage done to the Iranian attackers," Trump wrote on Truth Social.
He later told reporters the ceasefire remained in effect and played down the exchange. "They trifled with us today. We blew them away," Trump said in Washington.
Iran Accuses U.S. of Breaching Truce
Iran accused the United States of breaching the ceasefire, which had largely held since it was announced on April 7 but has come under far bigger strain this week since Trump announced - and then paused - a new naval mission in the strait.
"Every time a diplomatic solution is on the table, the U.S. opts for a reckless military adventure," Foreign Minister Abbas Araqchi said on Friday.
Iran's top joint military command said U.S. forces had targeted an Iranian oil tanker and another ship, and carried out air attacks on civilian areas on Qeshm Island in the Strait of Hormuz and nearby coastal areas. It said Iranian forces responded by attacking U.S. military vessels east of the strait and south of the port of Chabahar.
A spokesperson for Khatam al-Anbiya Central Headquarters said the Iranian strikes inflicted "significant damage," but U.S. Central Command said none of its assets was hit.
Later Iran's Press TV reported that, after several hours of exchanges, "the situation on Iranian islands and coastal cities ... is back to normal now".
Wider Regional Impact
The confrontation was not confined to the waterway. The United Arab Emirates said its air defences engaged with two ballistic missiles and three drones from Iran on Friday, resulting in three 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 on its neighbour this week after Trump announced "Project Freedom" to escort ships in the strait, which he then paused after 48 hours.
Economic Implications
Oil Prices Hover Around $100
In another incident in the area, Iranian forces seized an oil tanker, the Ocean Koi, in the Gulf of Oman east of the strait over an alleged attempt to disrupt Iran's oil exports, state media said on Friday, quoting an army statement.
It said the Barbados-flagged tanker, which is under U.S. sanctions, was carrying Iranian oil and "was trying to harm and disrupt oil exports...by exploiting regional conditions", without giving further explanation.
Oil prices held steady, with Brent crude futures hovering around $100 a barrel, as traders weigh the conflicting signals of clashes in the Gulf against reports of diplomatic progress.
Diplomatic Efforts and Future Prospects
Trump Urges Negotiated End to War
The latest U.S. proposal would formally end the conflict first, before addressing Washington's core demands - that Iran suspend its nuclear programme and reopen the strait. Tehran, which had made a similar proposal last week, said it had not yet reached a decision on the U.S. plan.
Iran's Nuclear Programme
Trump said Tehran had acknowledged his demand that Iran could never get a nuclear weapon, a prohibition he said was implicit in the U.S. proposal.
"There's zero chance. And they know that, and they've agreed to that. Let's see if they are willing to sign it," Trump said. Iran has always said its nuclear programme is peaceful and it is not pursuing a weapon.
Timeline for a Deal
Asked when any deal might be reached, Trump said: "It might not happen, but it could happen any day."
(Reporting by Reuters bureaus; Writing by Lincoln Feast and Ros Russell; Editing by Kate Mayberry, Alexandra Hudson, Peter Graff)
