Gulf tanker attack sparks oil price surge as Trump threatens Iran energy infrastructure
A fully loaded crude oil tanker off Dubai was struck and set ablaze by Iranian missiles and drones on Monday, escalating tensions in the Middle East conflict. The Kuwait-flagged Al-Salmi carries about 2 million barrels of crude oil, worth over $200 million, though authorities reported no injuries.
The attack comes after US President Donald Trump warned that the United States would obliterate Iran’s energy plants and oil wells if Tehran does not reopen the Strait of Hormuz, a key route for global oil shipments. The tanker strike is the latest in a string of assaults on merchant vessels since US and Israeli strikes on Iran on February 28.
The month-long conflict has spread across the Middle East, causing thousands of deaths, energy supply disruptions, and rising concerns over the global economy. Following the tanker attack, crude oil prices spiked, pushing the US national average gasoline price above $4 a gallon, the highest in over three years.
Military escalation continues: Iran-aligned Houthis launched missiles and drones at Israel, while Turkey reported a ballistic missile from Iran that was intercepted by NATO defenses. Israel carried out strikes on Tehran and Hezbollah positions in Beirut, resulting in explosions, black smoke, and power outages in parts of Tehran.
The Israeli military reported four soldiers killed in southern Lebanon, the same region where three Indonesian UN peacekeepers were recently killed. Iran confirmed its attacks targeted US personnel hideouts across five regional bases and in Israel.
In response, thousands of US troops from the 82nd Airborne Division have begun deploying to the region, expanding options for potential ground operations in Iran, even as diplomatic talks continue. Trump indicated willingness to negotiate with Iranian leaders but issued a renewed warning over the Strait of Hormuz, threatening to target desalination and energy facilities if Iran does not comply.
The White House also revealed a proposed $200 billion funding request for the war, with discussions underway on potential contributions from Arab nations. Meanwhile, financial markets reacted to the tensions, with oil prices fluctuating as investors watched for a potential de-escalation.
Source: Reuters