US-Iran conflict: Explosions near Qeshm Island and Bandar Abbas and drone strikes escalate Strait of Hormuz crisis

US slaps sanctions on Iran-linked oil smugglers funding Iraq attacks

US Treasury Secretary Scott Bessent likened the Iranian regime to "a rogue gang", accusing it of pillaging Iraqi oil resources by smuggling millions of barrels across borders to finance proxy militias and terrorism.

"The US Treasury will not stand idly by as Iran's military exploits Iraqi oil revenues to fund terrorism against the United States and our partners, including deadly attacks on our forces and allies in the region," Bessent said in a statement announcing fresh sanctions on Iran-linked oil networks.

The sanctions target entities tied to Iraq's Popular Mobilisation Forces, including Kata'ib Hezbollah, which the Treasury accuses of siphoning oil from fields like those in Basra and Maysan provinces.

US officials estimate these operations have generated over $100 million annually for Iran-backed groups, fuelling drone and rocket strikes on US troops in Syria and Iraq amid escalating Middle East tensions. This marks the latest US move to disrupt Iran's shadow economy, following similar actions in 2025 against ghost fleets shipping Iranian crude.

Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people. Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners. https://t.co/BgpGCBN7FW

— Treasury Secretary Scott Bessent (@SecScottBessent) May 7, 2026

7 Filipino seafares injured in Iran-linked attack in Hormuz

Seven Filipino seafarers were injured after the Maltese-flagged container ship CMA CGM San Antonio was hit in a reported Iranian drone attack while transiting the Strait of Hormuz on Tuesday (May 5), the Department of Migrant Workers said late on Thursday (May 7). Migrant Workers Secretary Hans Leo Cacdac said all seven were taken to hospitals for treatment, with four sustaining relatively minor injuries and three in more serious condition, as per the Manila Bulletin. The injured Filipino seafarers were evacuated from the ship and being monitored in hospitals.

Blasts, drone engagements reported near Qeshm Island and Bandar Abbas

State and semi-official Iranian outlets said explosions were heard near Qeshm Island and Bandar Abbas, both strategically close to the Strait of Hormuz. Local coverage indicated exchanges of fire near the Bahman pier on Qeshm, and Iran claimed to have shot down "several drones" in connection with the clashes, as per Euro News, quoting Iranian media. Independent confirmation is limited.

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Iran state TV reports explosions on island in Hormuz strait

Iran’s state broadcaster reported that the Iranian military launched missiles at “enemy units” in the Strait of Hormuz late Thursday, following what state media described as an attack by the US military on an Iranian oil tanker. The report said the forces targeted were “forced to flee after suffering damage.” It did not specify whether any foreign vessels were struck or detail casualties. These claims were attributed to an unnamed Iranian military officer quoted by state media. There has been no immediate confirmation from the US military of Iranian claims that its units were hit or forced to retreat. In past similar incidents, US officials have acknowledged defensive engagements — such as shooting down Iranian missiles, drones and small boats — without reporting damage to US vessels while enforcing naval operations in the Gulf.

Recent clashes underscore how volatile the situation is, as both sides accuse the other of breaching cease-fire terms and seek to assert dominance over maritime routes.

The Strait of Hormuz remains a flashpoint: control of the chokepoint directly affects energy markets and global shipping.

US‑Israel war on Iran: Recent developments

Day 69: Iran creates agency to control shipping at the Strait of Hormuz

Day 68: Trump threatens 'higher level' bombing of Iran if deal not agreed

Day 67: 'Project Freedom' paused 'for a short period': Trump

Day 66: UAE intercepts 12 ballistic missiles, 3 cruise missiles, 4 drones

Day 65: Iran says US options are 'impossible' war or 'bad deal'

Day 64: Iran tightens grip on Hormuz waters under new IRGC rules