Iran strikes UAE oil port as Strait of Hormuz battle escalates

Fresh attacks erupted in the Gulf on Monday as the United States and Iran fought duelling naval blockades for control of the Strait of Hormuz, with an Emirati oil port set ablaze.

The new salvos of missiles and drones followed the launch of a fresh operation by US President Donald Trump to open the Strait of Hormuz, the vital energy trade chokepoint that has been effectively closed since the US and Israel began strikes on Iran in February.

Before Monday drew to a close, several merchant vessels in the Gulf reported explosions or fires; the US said it had destroyed six small Iranian military boats; and an oil port in the United Arab Emirates, which hosts a major US military base, was set on fire by Iranian missiles.

Trump offered few details of the new initiative, which he announced on social media and termed “Project Freedom,” aimed at helping stranded ships transit the strait. The announcement came two days after the expiry of the legal deadline for him to obtain congressional authorisation for the war under US law. Trump told Congress the war was “over,” rendering the deadline moot — a claim contested by some lawmakers.

It was the first explicit attempt to use military force to open the world’s most important energy shipping route since last month’s ceasefire announcement. The Islamic Revolutionary Guard Corps, for its part, had said that transit could only occur with its permission. Shipping insurance costs have also surged. For weeks, the US Navy has been blockading Iran’s maritime commerce; Iran says that is itself an act of war.

But Trump’s latest move appeared to backfire, failing to produce an uptick in merchant vessel traffic while triggering a promised show of force from Iran. Iran had threatened to respond to any escalation with new strikes on US-hosting neighbours. Major shipping companies have said they will likely await an agreed end to hostilities before attempting to traverse the strait.

Iranian Foreign Minister Abbas Araghchi said Monday’s events demonstrated that there is no military solution to the crisis. Noting that peace talks under Pakistani mediation were progressing, he warned the US and the UAE against being “dragged into a quagmire by malign actors.”

“Project Freedom is Project Deadlock,” he wrote on social media.

Despite that, the US military said two US-flagged merchant ships had transited the strait, supported by Navy guided-missile destroyers, without specifying when. Iran denied any passage had occurred in recent hours, while Maersk said the US-flagged Alliance Fairfax had exited the Gulf via the Strait of Hormuz on Monday, accompanied by the US military.

The commander of US forces in the region claimed his fleet had destroyed six small Iranian boats; Iran denied this. Admiral Brad Cooper said he had “strongly advised” Iranian forces to stay clear of the US military elements conducting the mission.

Iranian officials released a map showing an expanded maritime zone they said was under their control. The zone extended beyond the strait to encompass long stretches of the UAE coastline.

South Korea reported that a merchant vessel, the HMM Namu, had suffered an explosion and fire in its engine room in the strait; no one on board was harmed, though a spokesperson said it was unclear whether the fire resulted from an attack or began internally.

The British maritime security agency UKMTO reported that two ships had been hit off the coast of the UAE, while Emirati oil company ADNOC said one of its empty crude tankers had been struck by Iranian drones.

Following drone and missile attacks reported inside the UAE throughout the day — including an assault that ignited a fire at Fujairah, a major oil port — the UAE said the Iranian strikes represented a serious escalation and that it reserved the right to respond. Fujairah lies outside the strait, making it one of the few export routes for Middle Eastern oil that does not require passage through the chokepoint.

The government also announced a shift to remote learning for school students for security reasons.

Iranian state television said military officials confirmed they had carried out the attack on the UAE in response to “US military adventurism.”

Earlier, Iran said it had opened fire on a US warship approaching the strait and forced it to turn back. An initial Iranian report stated that a US warship had been hit; the US denied this, and Iranian officials later described the fire as warning shots.

Reuters could not independently verify the full situation in the strait on Monday, with the warring parties issuing contradictory accounts.

Oil prices surged more than 5% in volatile trading on news of the intensifying Iranian attacks.

Iran’s joint command issued a notice to commercial vessels and oil tankers that they must coordinate with its armed forces.

“We warn that any foreign armed force, above all the aggressive US military, will come under attack if it seeks to approach and enter the Strait of Hormuz,” the statement said.

The US and Israel suspended their bombardment of Iran four weeks ago, and US and Iranian officials held one round of face-to-face peace talks. Attempts to arrange new meetings, however, have failed.

Iranian state media said on Sunday that the US had conveyed its response to a 14-point Iranian proposal via Pakistan and that Iran was evaluating it. Neither side provided details.

Iran’s proposal envisioned postponing talks on its nuclear energy and research programmes until an agreement is reached on ending the war and resolving the maritime standoff. Trump said at the weekend that he was still studying it but would likely reject it.

The latest US intelligence indicates that Iran’s nuclear programme has sustained limited damage since the war began, officials told Reuters. Iran says its nuclear programme is entirely peaceful and for civilian purposes. Iran’s nuclear facilities were bombed in US and Israeli strikes last year. Trump argues he wants to eliminate Iran’s enriched uranium stockpiles to prevent Tehran from reaching the point where it could further process them into a nuclear weapon.