A drone strike that set fire to two vessels at Egypt’s Mediterranean port of Damietta has raised fresh concerns over shipping security around the Suez Canal as the widening U.S.-Iran conflict threatens to pull more countries and strategic waterways into the war.
Egypt’s cabinet said on Thursday that an initial investigation found an unidentified drone was responsible for the fire that broke out on Wednesday at Damietta port, which is located near the Suez Canal linking the Mediterranean Sea with the Red Sea. No group has claimed responsibility for the incident.
Drone strike hits vessels at Damietta port
According to Egypt’s cabinet, the authorities are taking measures to safeguard national security following the incident. Trading sources familiar with the attack told Reuters that the drone struck the U.S.-owned gas storage tanker Energos Winter, causing a fire that spread to another vessel.
The incident is significant because the Suez Canal remains an important shipping route connecting the Mediterranean and Red Sea. Any deterioration in security around the waterway could add further pressure to regional trade and energy transportation at a time when other major routes are already facing disruption.
US strikes Iran’s Revolutionary Guards targets
The Damietta incident came as the U.S. military carried out strikes against Iranian Revolutionary Guards targets overnight. The U.S. military said it hit military command centres and drone facilities belonging to Iran’s Islamic Revolutionary Guard Corps after Tehran fired on U.S. forces in the region.
Iranian state media, citing the Revolutionary Guards, reported that three civilians were killed and two children were wounded in U.S. strikes on Qeshm Island. Three Guards members were also reported killed in Zanjan province.
The governor of Iran’s Khuzestan province said, according to Iranian state media, that two student dormitory complexes in Ahvaz were damaged during the overnight attacks.
The Islamic Revolutionary Guard Corps subsequently said it had attacked the U.S.-run Azraq base in Jordan in response to the American strikes. The Pentagon had not immediately responded to a request for comment concerning damage at the base.
Iranian attacks reported in Jordan and Kuwait
Jordan has increasingly become a target in the conflict because of the presence of U.S. forces in the country. Jordan’s armed forces said on Thursday that they had intercepted five Iranian missiles.
In another regional incident, an Iranian attack struck a building owned by a Chinese company in northern Kuwait, according to Kuwait’s Defence Ministry. The attack killed a worker and caused significant damage, the ministry said.
Saudi Arabia joins US strikes against Iran-aligned groups
Saudi Arabia has also become more directly involved in the conflict. On Wednesday, the country publicly joined U.S. forces in strikes against Iran-aligned groups in eastern Iraq. Riyadh said the action was in retaliation for drone attacks launched from Iraq against Saudi oil targets.
The joint strikes marked the first time during the five-month war that Saudi Arabia publicly acknowledged taking part in attacks alongside U.S. forces.
Two sources told Reuters that Saudi Arabia’s defence minister later met U.S. Vice President JD Vance in Washington and urged the Trump administration not to escalate the conflict further.
Houthi threat adds pressure on Red Sea shipping
The latest developments come after Iran-aligned Houthi militants in Yemen declared a naval blockade of Saudi Arabia the previous week, threatening the Red Sea route used to transport Saudi oil toward Asian markets.
Attacks on ships by the Houthis have already prompted London’s marine insurance market to expand its “high risk” zone in the Red Sea to cover more of the coastline near Saudi Arabian ports.
The combination of risks around the Suez Canal, Red Sea and Strait of Hormuz has increased concerns about the security of major energy and commercial shipping routes across the region.
Oil prices remain volatile amid widening conflict
The expanding conflict has also affected global energy markets. Oil prices surged by more than 8% on Wednesday before falling about 1% on Thursday in volatile trading. Benchmark Brent crude was trading just below $90 a barrel.
U.S. President Donald Trump said Washington would respond forcefully to Iran’s attacks on U.S. forces, while also maintaining that the United States was seeking a peace agreement to end the conflict.
Iran says it controls Strait of Hormuz
The Strait of Hormuz remains at the centre of the regional shipping crisis. Iran said on Wednesday that it had attacked three tankers attempting to cross the waterway using what it described as an unauthorised route.
However, ship-tracking data showed that a QatarEnergy-controlled liquefied natural gas tanker passed out of the Strait of Hormuz overnight. It was the first such vessel recorded leaving the waterway since July 11. Iran’s semi-official Fars news agency said Tehran had authorised the tanker’s passage.
Oman has also attempted to help manage the situation. Sources told Reuters that Muscat presented Iran with a Gulf-backed proposal for managing the Strait of Hormuz, including voluntary fees for vessels using the waterway.
Tehran rejected the proposal on Wednesday, although Iran’s semi-official ILNA news agency quoted Foreign Ministry spokesperson Esmaeil Baghaei as saying discussions with Oman over the Strait of Hormuz were continuing.
Iran expected to receive Chinese air-defence equipment
Meanwhile, three sources familiar with a reported deal told Reuters that Iran was expected to receive its first shipment within weeks from a potential supply of up to 400 Chinese-made shoulder-fired air-defence missile launchers.
The reported arrangement follows concerns in Tehran over weaknesses exposed in the country’s ability to protect military locations and strategic infrastructure during the war. Iran’s Foreign Ministry did not immediately respond to a request for comment, while China’s Foreign Ministry denied the report.
Conflict threatens to widen across the Middle East
The drone strike near the Suez Canal, attacks involving U.S. and Iranian forces, Saudi Arabia’s participation in strikes and the continuing threats to Red Sea and Gulf shipping point to a conflict increasingly affecting the wider region.
With the Suez Canal, Red Sea and Strait of Hormuz all facing heightened security concerns, the latest developments are adding uncertainty for energy markets and international shipping while diplomatic efforts continue alongside military escalation.
Source: Reuters
