Drone Strike Hits Egypt's Damietta Port, Raises Suez Canal Security Concerns

A drone strike that set two gas vessels ablaze at Egypt's Damietta port has raised concerns that the widening conflict between the United States and Iran is beginning to threaten areas close to the Suez Canal, one of the world's busiest shipping lanes and a key export route for Saudi oil.

The attack has added to concerns that the five-month conflict could expand beyond direct military exchanges between Washington and Tehran. According to Reuters, the strike in Egypt came alongside fresh military action across Iran, Iraq, Jordan and Kuwait, while renewed risks to maritime routes have heightened concerns over energy supplies and regional security.

Egypt's cabinet said on Thursday that an initial investigation found an unidentified drone had caused the fire aboard two vessels at Damietta port on Wednesday. The Mediterranean port lies close to the Suez Canal, which connects the Mediterranean Sea with the Red Sea.

The government said no group had claimed responsibility for the attack and added that authorities were taking measures to protect Egypt's national security.

According to Reuters, trading sources familiar with the incident said the drone struck the U.S.-owned gas storage tanker Energos Winter, with the blaze spreading to another vessel.

The incident unfolded hours after the U.S. military announced strikes on dozens of targets inside Iran in response to Iranian missile attacks on American forces in the region.

U.S. Central Command said it carried out a two-hour operation beginning at midnight against command centres belonging to Iran's Revolutionary Guards and drone facilities. It said the operation was intended "to further diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighbouring Gulf countries".

Iranian state media reported that three people were killed in the U.S. strikes on Qeshm Island.

The Islamic Revolutionary Guard Corps pledged retaliation, saying: "With the help of God, the aggressor will be punished today," according to a statement carried by state media.

The regional fallout continued elsewhere. Kuwait's Defence Ministry said an Iranian strike hit a building owned by a Chinese company in the country's north, killing one worker and causing significant damage.

Jordan's armed forces said they intercepted five missiles after preventing what they described as another Iranian attempt to target the kingdom. The military also said Iran had fired ballistic missiles at U.S. bases in Jordan on Wednesday, with those installations having become primary Iranian targets in recent weeks.

Saudi Arabia also expanded its role in the conflict. In its first publicly acknowledged participation since the war began five months ago, the kingdom joined U.S. strikes on Iran-aligned groups in eastern Iraq on Wednesday. The operation followed drone attacks launched from Iraq against Saudi oil facilities.

Reuters reported that, after the joint operation, Saudi Defence Minister met U.S. Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate the conflict further, citing two sources familiar with the discussions.

The war began in February when the United States and Israel launched an air campaign against Iran. President Donald Trump had said the operation would last only a few weeks, but a temporary ceasefire reached in June later collapsed as fighting resumed over the Strait of Hormuz, a strategic waterway that Iran says it now controls.

According to Reuters, the latest developments in Egypt and Iraq have increased the possibility of more countries being drawn into the conflict. The risks have grown further after the Iran-aligned Houthis in Yemen announced a naval blockade on Saudi Arabia last week, threatening the alternative Red Sea route used to transport Saudi oil to Asian markets.

Trump said Washington would respond forcefully after Iran fired missiles at U.S. forces, while also maintaining that the United States remained committed to pursuing a peace agreement to end the conflict.

Oil prices rose for a second straight day as fighting intensified before surrendering part of those gains later in the session, with Brent crude trading at around $90 a barrel.

Iran said on Wednesday it had struck three tankers attempting to pass through the Strait of Hormuz using what it described as an unauthorised route.

However, a QatarEnergy-controlled liquefied natural gas tanker left the strait overnight, becoming the first such vessel tracked exiting the waterway since July 11. Iran's semi-official Fars news agency said Tehran had authorised the vessel's passage.

Separately, Oman presented Iran with a Gulf-backed proposal to manage traffic through the Strait of Hormuz, including the collection of voluntary transit fees, Reuters reported, citing sources. Iran rejected the proposal on Wednesday.

Reuters reported that, after the war exposed shortcomings in Tehran's ability to protect military sites and strategic infrastructure, Iran is expected to receive within weeks the first shipment from a deal for up to 400 Chinese-made shoulder-fired air-defence missile launchers.

Iran's Foreign Ministry did not immediately respond to a request for comment, while China's Foreign Ministry denied the report.