Iran strikes fully laden Kuwaiti oil tanker near Dubai as regional tensions escalate

Iran has struck a fully laden Kuwaiti oil tanker in the anchorage area of Dubai port, causing structural damage to the vessel’s hull and igniting a fire on board.

The drone strike on the Al-Salmi, a Kuwaiti-flagged Very Large Crude Carrier (VLCC), represents one of the most significant assaults on maritime shipping to date. The attack targeted the fully loaded vessel just 31 nautical miles northwest of Dubai, in a high-traffic zone frequently used by ships awaiting transit through the Strait of Hormuz.

“Emergency response and firefighting teams were immediately dispatched and are currently working in close coordination with relevant authorities to contain and manage the situation,” the state-run Kuwait Petroleum Corp. said in a statement. The company added that the attack, which occurred shortly after midnight local time, may have resulted in “oil leakage into the surrounding waters.”

The Dubai Media Office confirmed in a post on X that all 24 crew members are safe.

The incident marks a further escalation in a month-long Middle East conflict that has roiled global markets and triggered fears of stagflation—a simultaneous spike in inflation and a slowdown in economic growth. The hostilities began with US and Israeli strikes against Iran while negotiations were ongoing. As the conflict entered its fifth week, US President Donald Trump issued threats against Iranian infrastructure, including power plants and oil facilities, and deployed additional troops to the region.

Oil prices surged following the tanker attack, with West Texas Intermediate futures rising approximately 4% toward $107 per barrel.

Iran maintains near-total control over the Strait of Hormuz, the narrow waterway providing access to the Persian Gulf, and has paralyzed the shipment of energy and other commodities by closing the passage to nearly all vessels. While Tehran has repeatedly targeted shipping and energy infrastructure, this latest strike is the closest to the major port city of Dubai.

According to vessel-tracking data, the Al-Salmi entered the Gulf via the strait in late February, reaching the Saudi port of Khafji to take on crude. The tanker then sailed to Kuwait’s Mina Al Ahmadi to receive an additional load before heading east toward the United Arab Emirates fully laden. It had been positioned off Dubai since that time.

As Iran intensified its maritime offensive, the vessel had signaled it was sailing under the Kuwaiti flag en route to the Chinese port of Qingdao, claiming to carry cargo destined for China.