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SPECIAL REPORT: Drone Strike Near Egypt’s Suez Canal Opens New Security Front in Widening War

A hit on gas vessels exposes a new maritime front as fighting spreads across Jordan, Kuwait and Iraq and Saudi Arabia’s remaining oil routes face mounting pressure.
A plume of smoke rises from Qeshm, Iran, on Thursday after reported strikes in a screengrab from social media video. Reuters.

Summary:

  • Egypt says an unidentified drone strike set two vessels ablaze at Damietta port

  • The Mediterranean port sits near the Suez Canal, a critical outlet for Saudi oil

  • U.S. forces struck dozens of Iranian military targets overnight

  • Iran’s Revolutionary Guards claimed attacks on U.S. assets in Jordan and Kuwait

  • Saudi Arabia joined U.S. strikes in Iraq and urged Washington to contain the conflict


A DRONE STRIKE on gas vessels at Egypt’s Mediterranean port of Damietta has brought the widening U.S.-Iran war closer to the Suez Canal, raising the risk of disruption along one of Saudi Arabia’s remaining oil-export corridors.

Egypt’s cabinet said Thursday that a preliminary investigation found an unidentified drone caused a fire aboard two vessels at Damietta on Wednesday. No organization has claimed responsibility.

Trading sources familiar with the incident identified the primary vessel as the U.S.-owned Energos Winter, a floating gas storage and regasification tanker. They said the fire spread to a second vessel.

The Energos Winter is one of four floating regasification units operating in Egypt, making the incident a threat to energy infrastructure as well as maritime security. Damietta lies on the Mediterranean coast near the northern approach to the Suez Canal, which connects the Mediterranean and Red seas.

A view of the Damietta port, Egypt, August 31, 2024. Vantor/Handout via Reuters.

The canal and the adjoining SUMED pipeline provide an outlet for Persian Gulf energy shipments that avoid longer voyages around Africa. Saudi Arabia has relied more heavily on its East-West pipeline and Red Sea terminals during the disruption at Hormuz, increasing the strategic value of the Suez and Red Sea corridor.

The Damietta strike came during another exchange of attacks between Washington and Tehran. The U.S. military said it hit dozens of Revolutionary Guard targets during a two-hour overnight operation, including command centers, missile and drone facilities, coastal surveillance sites and air defenses.

A plume of smoke rises after reported strikes, from Qeshm, Iran. Reuters.
Rescuers clear rubble to search for victims following a strike in Qeshm, in this still image taken from video. IRIB/Reuters.

Iranian state media said the U.S. strikes killed three civilians and wounded two children on Qeshm Island. Three Revolutionary Guard members were reported killed in Zanjan province.

The governor of Khuzestan province said two student dormitory complexes in the southwestern city of Ahvaz sustained damage.

Iran’s Islamic Revolutionary Guard Corps said it retaliated against Al-Azraq air base in Jordan, where U.S. aircraft and personnel are stationed. The Guards claimed their missiles struck F-35 fighter jets and killed American service members. The Pentagon had issued no confirmation of those claims.

Jordan’s armed forces said its air defenses intercepted five Iranian missiles Thursday. U.S.-used bases in Jordan have become recurring targets during the conflict, placing the kingdom’s territory and airspace inside the expanding battle zone.

The Guards claimed a separate attack on U.S. assets at Ali Al Salem Air Base in Kuwait. Iran’s semi-official Tasnim news agency said two drone hangars and a fuel-storage facility were destroyed.

Kuwait’s Defense Ministry said an Iranian strike hit a building owned by a Chinese company in the country’s north, killing a worker and severely damaging the structure.


Saudi Arabia Enters the Campaign in Iraq

Saudi Arabia publicly joined U.S. military strikes for the first time in the five-month war, targeting Iran-aligned groups in eastern Iraq on Wednesday.

U.S. Central Command said American and Saudi aircraft conducted coordinated strikes on logistics and weapons sites used by militias accused of attacking U.S. forces and Saudi energy infrastructure.

The operation followed more than 30 drone attacks that the U.S. military attributed to groups directed by the Revolutionary Guards. Saudi Arabia said drones launched from Iraqi territory targeted oil facilities in the Eastern Region and Riyadh.

Saudi and regional assessments concluded that Yemen’s Iran-aligned Houthis coordinated attacks on Saudi Arabia from Iraq with Iraqi armed groups.

Saudi Defense Minister Prince Khalid bin Salman met President Donald Trump and Vice President JD Vance in Washington after the joint strikes. He conveyed Riyadh’s demand for action against attacks on Saudi infrastructure and urged the administration to prevent a broader escalation, according to people familiar with the meetings.

The conflict began Feb. 28 with U.S. and Israeli strikes inside Iran. Trump initially predicted a campaign lasting only a few weeks. A temporary ceasefire reached in June collapsed during renewed fighting over the Strait of Hormuz.

The attacks in Iraq and Egypt increase the number of regional states directly exposed to the war. They also place pressure on both sides of the Arabian Peninsula.

Iran has asserted control over shipping through Hormuz. The Houthis declared a naval blockade against Saudi Arabia and threatened vessels using Saudi Red Sea ports. Saudi Arabia depends on those western ports to export oil moved across the kingdom by pipeline when Gulf routes are closed or restricted.

A container ship crosses the Gulf of Suez towards the Red Sea before entering the Suez Canal, in Al-'Ain al-Sokhna, in Suez, Egypt, July 30, 2023. Reuters.

Houthi attacks on commercial ships prompted London’s marine insurance market to expand its Red Sea “high risk” area along more of the Saudi coastline. A broader risk designation can raise insurance costs, deter shipowners and divert vessels around the Cape of Good Hope.

Trump said the United States would strike Iran forcefully for attacks on American personnel. He said Washington remained engaged in efforts to secure a peace agreement.

Energy markets continued to register the conflict’s economic cost. Oil prices rose more than 8% Wednesday and eased about 1% Thursday in volatile trading. Benchmark Brent crude remained just below $90 a barrel.


Iran Tightens Its Grip on Hormuz

Iran said Wednesday that its forces struck three tankers attempting to cross the Strait of Hormuz through a route Tehran had not authorized.

Hormuz is the world’s most important oil-transit chokepoint by volume. Roughly one-fifth of globally traded oil normally passes through the waterway, leaving energy markets highly sensitive to attacks, closures and restrictions.

A QatarEnergy-controlled liquefied natural gas tanker exited the strait overnight, becoming the first such vessel recorded leaving Hormuz since July 11. Iran’s Fars news agency said Tehran authorized the passage.

The transit demonstrated Iran’s ability to determine which vessels receive access to the waterway. It provided limited movement for Qatari gas exports without establishing open passage for commercial shipping.

Oman presented Iran with a Gulf-backed proposal for regional management of Hormuz and voluntary transit fees. Tehran rejected the Omani framework Wednesday.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said discussions with Oman were continuing. The negotiations center on control of a shipping route that gives Tehran direct leverage over Gulf exports and global energy prices.

Iran is rebuilding military capabilities lost during months of U.S. and Israeli strikes. Three people familiar with the matter said Tehran is expected to receive within weeks the first shipment from a proposed order of up to 400 Chinese-made shoulder-fired air-defense missile launchers.

Iran’s Foreign Ministry did not respond to a request for comment. China’s Foreign Ministry said the report was “completely groundless.”


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